The Problem: ——————————————— Those of us that are in Crypto for more than a Cycle know how difficult it can be to realize losses on illiquid assets when you need to. And every NFT collector has a lot of dead projects in his wallet of which most will have no comeback and due to the fact that those have been most probably been bought with profits without realizing a loss you now loose on two ends. First you pay Tax on buying the NFT for realizing a profit on ETH and later you’re not able do deduct that loss because you can not sell the asset.

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The Solution: ——————————————— The JPEG TRASH BIN -> Is a smart contract that you can sell all your illiquid NFTs to in order to realize the loss in your accounting.

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The Mechanics: ——————————————— The contract pays 1 Wei per trx of NFTs to the contract -> It’s important that it is per transaction and not NFT to be save against exploits that would steal the ETH from the contract. It doesn’t matter if you send a bundle of 100 NFTs or 1 NFT you’ll get 1 Wei in return and you are able to deduct the full loss on that asset.

There will be a long NFT Winter at some point where most Collections will be so illiquid that everybody will want to realize these losses the contract will collect all these NFTs and at some point in the future some of those Collected will have a come back. We’ve seen this happen with many Projects that have been seen as Dead in the past and I’m certain we’ll see it with NFTs to.

The contract gives everyone the ability to buy each of these NFTs in the contract at a fixed price with different tiers for DAO, HASH or non HASH holders. As soon as a collection becomes liquid again and the floor rises above the price of the Contract arbitrage Traders can buy from the Trash bin in order to sell on a secondary Market.

Buy price 0.069 ETH

20% Discount on buys from HASH Holders 75% Discount on buys from DAO HASH Holders

Prices and Discounts need to be adjustable by the DAO in the Contract in order to find perfect balance. Important is that sell to the contract is priced per transaction vs buys from the contract are priced per NFT.

Transaction gas price would also be another factor to midigate the risk of exploits, the contract should check for gas > 2 Wei so that no miners can exploit the contract by sending millions of trx to it and steal the ETH.

NFT Market Aggregators like Genie can integrate the Trash Bin contract as additional source to buy NFTs from.

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The Value: ——————————————— The Hashes DAO would offer a solution for a problem most NFT Collectors are going to face and if we only pay 1 Wei per transaction it needs almost no funding from us, while creating the opportunity to make additional revenue for the DAO into the Future. DAO Hash holders would get an opportunity to profit on said arbitrage trades before everyone else.

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The Math: ——————————————— Here is a Spreadsheet with some more comments on the mechanics and to illustrate the possibilities for us. As soon as the Contract holds more than 0.001 ETH the DAO is able to withdraw those ETH + DAO can always decide on withdrawing specific NFTs from the Contract into the Treasury if we want so and profit as the DAO directly from those arbitrage trades. The Mechanic makes sure that as soon as there is demand there will be buyers from the the contract

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The Cost: ——————————————— 0.10 ETH Contract funding 0.25 ETH for contract deployment 4.80 ETH for Solidity -> 2 week + 20% 2.40 ETH front End -> 2 week + 20% 1.30 ETH Project Management

8.85 ETH ≈ 9 ETH total Budget