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What are Mutant Cats and why are they rising in popularity? Like CryptoPunks, Mutant Cats is an NFT collection consisting of 9,999 unique, algorithmically generated collectibles.
However, the similarities with CryptoPunks end there. The Mutant Cat is more than just artwork – it is your membership card to the exclusive Mutant Cat DAO (Decentralized Autonomous Organization).
The Mutant Cat DAO intends to purchase red-hot Cool Cats NFTs first, and then other big-name NFTs later. Afterwards, Mutant Cat NFT holders receive $FISH tokens in return for fractionalizing the treasury’s NFT holdings.
Those things may seem complicated at the moment, but don’t worry. In this Mutant Cats NFT guide, we break down the project into easy-to-understand terms and explain how the DAO works. Once you’re done reading, you’ll have a head start on one of the fastest-growing NFT projects around.
It is important to understand what an NFT is before getting into the DAO part of the project.
NFT stands for Non-Fungible Token. These tokens are cryptocurrencies. As opposed to other tokens, such as ether (ETH), each NFT is unique and cannot be exchanged on a 1:1 basis with any other token.
Imagine a dollar bill to illustrate this point. Dollar bills (i.e., interchangeable) can be exchanged between two people without losing value. NFTs are non-fungible assets, such as unique artworks, so they cannot be traded as easily.
Additionally, NFTs act as proof of ownership of unique items since they are non-fungible. Such items may be digitally or physically based. Therefore, NFTs can represent anything on the blockchain. For proof of ownership, you only need to hold the corresponding NFT in your crypto wallet.
NFTs work on that principle. To learn more, read our beginner’s guide to NFTs. Having understood NFTs, let’s move on to Mutant Cats.
A mysterious disease has mutated 9,999 cats into Mutant Cats NFTs, giving them strange features like cyclops eyes, radioactive slime, and gamma-ray skin. Mutant Cats NFTs provide more to their owners than just being pretty to look at:
DAOs (Decentralized Autonomous Organizations) have unique purposes. Royalties collected on Mutant Cats sales on OpenSea will be used to fund the DAO’s treasury. After that, Treasury funds are used to purchase NFTs for Cool Cats.
9999 randomly generated cats make up the Cool Cats NFTs collection. However, they predate Mutant Cats and are considered to be among the best among NFT collectors. Cool Cat is currently available for 10 ETH (~$35K).
The Mutant Cats DAO fractionalizes each Cool Cat NFT that it acquires using the Fractional.art platform and then returns ownership to Mutant Cats holders in the form of $FISH tokens. Later, the Mutant Cats DAO plans to diversify into other blue-chip NFTs like CryptoPunks, Bored Ape Yacht Club, and CyberKongz.
After spending roughly $380K of Treasury funds, the Mutant Cat DAO currently owns 11 Cool Cats.
Mutant Cat NFTs provide direct exposure to high-value NFTs like Cool Cats and, eventually, CryptoPunks and BAYC through collective buying power. However, you must stake your Mutant Cat NFT in order to get that exposure.
Currently we know that each Mutant Cat NFT gives its owner voting rights and access to the DAO. Moreover, the DAO will buy NFTs using OpenSea royalties, then fractionalize ownership back to owners of Mutant Cat NFTs using the $FISH token.
Mutant Cat NFT has the right to 10 $FISH tokens per day. Since $FISH tokens give you part ownership of Cool Cats NFTS (and other valuable NFTs once diversification begins), obtaining $FISH tokens seems imperative.
There are two ways to get $FISH tokens:
The NFT staking method credits your wallet with $FISH tokens throughout the day and allows you to withdraw them at any time. To avoid overpaying ETH gas fees, it’s best to let your $FISH tokens accumulate for a while rather than withdrawing them right away.
Approximately 66% of all Mutant Cats NFTs are staked and earning $FISH tokens.
Here are the two most important things you should know about Mutant Cat NFTs and $FISH tokens.
To gain exposure to the NFT treasury of the DAO, you do not need to own a Mutant Cat, as $FISH tokens are listed on secondary markets. The downside is that you won’t be able to vote in the DAO, so you won’t be able to choose which NFTs the DAO will buy.
In addition to DAO voting and fractionalizing valuable NFTs, Mutant Cats and $FISH tokens have interesting applications. In the near future, they will combine to breed additional NFTs, mint companions, and receive airdrops as they reach staking milestones.
Though the details aren’t entirely clear, NFT breeding will probably require either 2 Mutant Cat NFTs (which are then burned when their spawn is created) or 1 Mutant Cat plus $FISH tokens.
The Bored Ape Yacht Club is one project that has successfully implemented NFT breeding. A mutant serum NFT was given to all Bored Ape NFT owners, creating Mutant Ape NFTs as a result.
Aside from Mutant Cat breeding, companion NFTs have been mentioned by the project’s developers, as well as unspecified new mints. As Mutant Cat NFTs have risen to the top of OpenSea’s trading charts, it’s safe to say people are excited about their utility.
Mutant Cats prove beyond the hype that NFT collectors want collectibles to have additional features such as DAO access, Treasury funds, and incentives. Due to this, it’s not a surprise that Mutant Cats sales have soared over Cool Cats, the very project they were created to collect.
Golom.io | The NFT marketplace that traders love. (2021, May 5). Golom.Io. https://golom.io/
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