2 NFT Projects Rewarding with Tokens

Who doesn’t like a cool-looking NFT? But one thing I like a lot more than a fun piece of digital art is when it serves a practical purpose. So I’ve identified two projects where NFT token holders will earn tokens from platforms with a utility. This way, you can get your cool PFPs and be rewarded with a crypto asset.

The first project was minted on Arbitrum two days ago, on March 18. It’s called Federal Frens, the more speculative option of the two projects. The second project is the Optimism Mummy Club which is still minting on Optimism. Timing is important with these projects, so if either/both interest you, moving fast is probably a good idea. They are both attainable for less than 0.15 ETH, so you don’t have to spend a fortune to gain exposure.

Federal Frens

690 Federal Frens NFTs quickly sold out on March 18. The frog-inspired art has clever attributes like diamond eyes, a hazmat uniform, and spiked hair. Federal Frens is exclusive to Arbitrum. Some other Arbitrum NFT projects have gained steam lately, including Smolverse, with over $51M in volume on the Treasure platform, and Primapes DAO, which has over 206 ETH in trading volume.

Federal Frens tokens will entitle NFT holders to an airdrop for a platform called OnlyFrens, which is scheduled to launch in Q2. In addition to having a clever name, OnlyFrens will be a platform providing valuable data for Arbitrum NFT collectors, investors, and speculators. Platform users must purchase subscription NFTs to access the Federal Frens team calls “a decentralized minimalistic NFTs dashboard. Combining social and on-chain analytics to help you identify opportunities early.”

27.6 ETH (approximately $50K) were raised in the minting. Some of this will provide liquidity for the $OF token LP and pay developers to create the platform. In addition, 69% of the $OF token supply will be airdropped to Federal Frens holders. To qualify for the airdrop, you must hold the NFT in your wallet 14 days after the launch date, April 1.

Today, Federal Frens NFTs can be purchased on OpenSea at a 0.062 ETH floor price valuing the collection at 42.78 ETH ($77K). Assuming all value is in the platform, this would value the platform at $111,600.

I anticipate the value of the Federal Frens NFT to drop following the snapshot period because holders will no longer qualify for the $OF airdrop. However, the team has said the Federal Frens NFTs will provide holders access to the OnlyFrens platform, and they will also try creating other utilities. Additionally, Federal Frens NFT holders get access to the Discord Alpha forums.

I have purchased a few of these NFTs because they are an Arbitrum project, and I believe Arbitrum season is closer to the beginning than the end. OnlyFrens is a speculative NFT play, and if nothing else, I have an NFT I like that was capped at a very limited 690 mint. If the floor increases as we get closer to the snapshot date, I may sell a couple of these to lock in a profit. However, I will hold on to some for the $OF airdrop.

Website: https://federalfrens.xyz/
Chain: Arbitrum
Opensea link to the collection: https://opensea.io/collection/federalfrens
Discord: https://discord.com/invite/8JzSmQDTb3
Current Floor Price: 0.062 ETH
46 Federal Frens NFTs are selling for 0.12 ETH or less
Number of holders: 337
Tweet to check out: https://twitter.com/federalfrensnft/status/1634968476317282304?s=46&t=KS7azn94ZBDus537A6d3dA

Optimism Mummy Club

While Arbitrum has been getting much well-deserved attention, derivative platforms generate huge revenues and fees whether the markets go up or down. GMX popularized decentralized derivative exchanges with its unique tokenomics and liquidity sourcing.

Launched in December 2023, Mummy Finance is a GMX fork that began on the Fantom chain. On Fantom, Mummy Finance has processed $637 million in volume and earned $1.1 million in revenue. $MMY has a $9.1 million circulating market cap. In March, Mummy Finance went multichain and expanded to Optimism.

The Mummy Finance tokenomics are very similar to GMX. 60% of platform profits go to $MLP (platform liquidity) stakers, and 30% gets distributed to $MMYstakers. The team gets 5%, and 5% is used for $MMY buybacks and to deepen liquidity.

If you aren’t familiar with GMC tokenomics, I encourage you to read how Mummy tokenomics and inflation works on their documents: https://docs.mummy.finance/rewards.

There are a total of 5,000 Optimism Mummy Club (OMC) NFTs. Each NFT costs 0.13 ETH to mint. 2,890 have already been minted since March 12. The attributes and collectibility value is very low on these NFTs. However, the utility is extremely high.

The OMC NFT is being used to raise liquidity for the $MMY liquidity pool on Optimism and provide liquidity for the $MLP trading pool used to trade against the Mummy.finance platform on Optimism.

When you buy and stake an OMC NFT, you will receive 50% of the $WETH rewards from the funds invested in the $MLP pool. Meanwhile, the esMMY rewards will be staked to earn higher rewards. So everyone who owns and stakes the OMC NFT will receive rewards currently listed at 14% APY. This isn’t too exciting, but the platform has only recently launched on Optimism.

What I like about the OMC NFT is that original minters will receive 40 esMMY per NFT they mint. For example, $MMY is trading for $6.90. You have two options with your esMMY 1) you can vest them linearly into $MMY over the year. 2) You can stake them and earn $WETH rewards and multiplier points.

I have staked my OMC NFTs and am vesting them for the $MMY. If the $MMY price stays the same, my $MMY tokens will be worth $277, about $40 more than the ETH I spent minting the NFT. Of course, the price of $MMY may go up or down, but so far, the platform and team are delivering. So rather than selling my $MMY tokens when they vest, I am staking them for more rewards.

This is a better strategy than buying $MMY tokens because by staking an OMC NFT, you own a piece of the $MLP pool and get esMMY. However, the 40 bonus esMMY reward only goes to the original token minters. Also, the value of your pool share is determined by how low your OMC NFT mint is. This means it’s better to buy the 2,900 NFT instead of the 4,500 NFT.

The NFTs can be sold on the secondary market but at a lower price because it won’t include the esMMY rewards. I like this NFT because it exposes me to derivatives on Optimism and Fantom (indirectly) via the $MMY token. It also provides me with consistent income and tremendous upside if Mummy Finance continues growing at its current pace.

Website: https://app.mummy.finance/#/nft
Chain: Optimism
https://linktr.ee/mummyfiftm
Mint Price: 0.13 ETH
2,890 out of 5,000 NFTs have been minted

Final Thoughts

I’m not going in over the top on these two plays. On the contrary, I like them because my risks are limited, and the upside potential could be extremely high.

^{These materials should not be taken as investment advice. These are my opinions and investments I have made. They should only be used to provide you with ideas and projects to research. Digital assets, including crypto and NFTs, are high risk, and any investments could result in a total loss. Do your own research and perform due diligence before making any investments.}