Hi all. We all know that $HEAD derives much of its value from utility. I was thinking a sustainable long-term burn mechanism would be to invest in projects with breeding mechanics and use the babies created as the prize for raffles where entries are paid in $HEAD token, with the entry pool being burned.
Example 1: Purchase another CyberKongz Genesis and breed BabyKongs. With another genesis kong, the DAO would receive 20 $BANANA per day. A baby requires 600 $BANANA to breed meaning we can breed a baby every 30 days. Max supply for babies is 4,000 and currently 2,945 have been created. At one baby per month that's 35 months. Obviously other babies are being created but I think it's safe to say we could keep this going for 6-12 months. As most people are aware, a baby kong grants access to the exclusive WSK Discord Channel which has really great alpha and most people say that the cost of a baby (9 ETH currently) is paid for by the alpha provided by the whales in that group. If we are able to raffle a baby every month (with $STACK as the only way to enter) I have no doubt in my mind that this would create a huge demand for $STACK and thus create reliable monthly burning for the token.
Cost analysis: Another genesis would cost 110 ETH but we would be able to generate ~9 ETH per month. Approx. 1 year to pay back assuming no appreciation for the baby. $HEAD would be burned monthly and reducing supply can lead to price appreciation for the token and every holder wins.
Example 2: Purchase AT LEAST 2 KaijuKingz Gensis and breed baby kaijus. This is the exact same concept as example 1 except a little riskier since kaijus are a very new NFT project. However, there is demand as kaijus have held a price floor of 3+ ETH for a few days now and show no sign of dropping. Each kaiju generates 5 $RWASTE a day with 750 being required to breed a baby. If we purchase 5 Kaijus that's 25 $RWASTE a day. 750/25 = 30 days to get a baby kaiju.
Cost analysis: 5 kaijus is approx. 30 ETH and a baby goes for ~4 ETH. Approx. 7.5 months to pay back assuming no appreciation for the baby. The main risk being that kaijus are new and thus the demand for them as a raffle prize may not be much leading to not as much $HEAD supply being burned as example 1.
Conclusion: Investing in projects with breeding to have a sustainable monthly raffle using $HEAD as the entry would be a great way to add utility to the token and save DAO funds given the babies would be effectively free. Cost of capital would be paid back in ~1 year (probably less) and the demand for $HEAD and subsequent burning would almost certainly lead to price appreciation for the token. There would also be excitement every month as owners have a chance to win extremely lucrative prizes.