4,200 Unique Tokens of varying rarity that represent the business.
When trying to explain NFTs to someone unfamiliar with the concept, the easiest way to explain it are baseball cards.
Certain rare baseball cards are so unique that hey are worth thousands of dollars. If we go deeper into collectibles, we bump into Trading Card Games like Pokémon and Magic: The Gathering where a single card can sell for hundreds of thousands of dollars.
Even though to some people these cards might be no more than cardboard, long time players or die hard collector fans are willing to pay cash to get these rare cards.
Unique Tokens with special traits can be created. Traits are assigned weights. The lower the weight, the rarer the Token.
The same goes for NFTs. They are unique Tokens issued on the Solana Blockchain. Each token is made up of different traits and each trait is assigned a rarity when created.
Rare tokens can give their holders access to special deals, parties and other perks. They also receive higher staking rewards, thus creating value.
Rare traits like the Kaiju, Shiny Lotus and Moon Ramen give holders highers rewards and thus are more valuable.
As we said before, the entire 4,200 Token collection represents 100% of the stake in the business.
Therefore, the value of each token can be calculated by using a rule of thumb valuation technique of 18 Months Annual Recurring Revenues (ARR).
In the case of the restaura, 18 months of sales equate to roughly ~$220,000 USD.
To calculate the price per Token, the business is valued by rule of thumb at 18 months ARR and then divided by the number of tokens in the collection.
At current market prices, this is close to 1 SOL. So a call to Mint at 1 SOL will be made, with the first 1,000 Tokens in the whitelist costing only 0.5 SOL.
We believe that this low entry point will allow for the inclusion of most of the interested sector and promote high transaction volume.
The cost of the Tokens in the secondary market will depend on supply (people wanting to list their tokens) and demand (people wanting to buy said tokens).