New NFT collection, Kaiju Kongz has added a burn mechanism to the project. Basically, the project will burn your NFT if you list it below a certain value on OpenSea. Needless to say, not everyone is happy with this move. Several Twitter users have said that move is to “artificially pump” the project’s floor price.
If you have spent a considerable amount of time in the NFT space, you’ll know how important the floor price is for an NFT project. In fact, it is one of the most important parameters to gauge a project’s value. Put simply, the floor price is the lowest amount you have to spend to buy NFT from a particular collection. Thus, it is not uncommon for at least some projects to artificially pump their floor. Kaiju Kongz too seems to be doing the same, albeit through a novel route.
Kaiju Kongz burn mechanism explained
First things first, what exactly does burning an NFT mean? Put simply, when an NFT is burnt, it is automatically removed from the collection. In other words, you will lose any money associated with the NFT.
“If you list below the threshold then it is destined to be burned, trying to delist it or buying it after mistakenly listing below threshold will not save your NFT,” Kaiju Kongz wrote. “So double/triple check the burn schedule before you list it!”
“If you list it above threshold price and then delist/get it sold before the next day’s new threshold price kicks in then you are safe, the NFT will not be burnt,” the project added.
Apparently, Kaiju Kongz has also set up a burn schedule. The thresholds for different dates are given below. The project will burn any listing below the given prices on a given day.
- March 18, 20:00 UTC – <0.065 ETH
- March 19, 20:00 UTC – <0.08
- March 20, 20.00 UTC – <0.16
- March 21, 20:00 UTC – <0.32
- March 22, 20:00 UTC – <0.64
- March 23, 20:00 UTC – Burn mechanism will be disabled
Even if you are a collector interested in buying Kaiju Kongz, you must know the burn thresholds before buying any NFT. Because, if you buy an NFT listed below that day’s threshold price, Kaiju Kongz will burn the NFT the next day.
How has Twitter reacted to the move?
After Kaiju Kongz posted the details of the burn mechanism on Twitter, several users criticized the project. For instance, @MorganStoneee wrote, “Yikes. Burning listings below a certain threshold to artificially pump your floor? NGMI.”
Another called the move “illegal market manipulation tactics”. Several users also commented that the project should grow the floor “organically”.
Kaiju Kongz consists of a total of 3,333 NFTs. Their name and art style resemble that of the pixelated Kaiju Kingz collection, a popular project in the market. Currently, the Kaiju Kongz floor has reached 0.265 ETH.