As the NBA Top Shot marketplace continues to crater, early adopters are getting increasingly anxious about the precipitous drop of the value of their collection.
I’ll be the first to say that I love NBA Top Shot, I enjoy the platform, and I understand collecting isn’t all about the resale value of what you buy. As a sports fan, it’s a great evolution from collecting cards, bringing a new dynamic in showing an actual moment while providing proof of ownership. However, even collectors who are in the game for the long haul don’t want to watch thousands of dollars of value disappear seemingly overnight and watch moment they paid $500 for drop to $50.
I appreciate that NBA Top Shot and Dapper have been thinking of ways to reward collectors, from special moments like the Steph Curry gift, to offering Dapper balance for participation in the community. That said, it’s time for them to embrace the NFT/crypto space and do something revolutionary. It’s time to start staking moments.
So, how would that work, exactly? NBA Top Shot should offer staking periods which reward collectors for staking their moments, therefore pulling them off the market and reducing supply. My recommended reward for staking would be Dapper Balance which can be spent in the marketplace immediately upon receipt, or, after a waiting period of a month, be withdrawn. The staking reward can be relatively small, but go up based on the rarity of the moment. Additionally, I think there should be higher staking rewards for lower serial numbers.
Why it Works
This helps in several ways. First, it instantly reduces supply, which drives up prices. Value of collections rise because all moments now carry tangible value, no matter how common. It introduces a whole new level of analytics where smart marketmakers could search for deals based on long term staking value.
Second, it makes pack opening much more exciting. If you get a sub 100 serial, it has a whole new meaning. Right now, the market for low serial common moments is largely stagnant. Sellers price them high because they feel there’s value to low serials, but buyers don’t see value in getting the moment when the floor price for higher serials is $3. Imagine ripping a pack, getting a #88 serial common, and knowing you can earn more money staking it, or sell it to someone who wants it for staking.
Lastly, NBA Top Shot wins. I’m sure someone much smarter than I could do the math on what the right staking rewards are to stay profitable. It’s going to gas up marketplace activity, and with Top Shot getting a percentage from every sale, everyone comes out on top. Plus, if there’s a waiting period on the using the money earned from staking, people are more likely to spend it in the Top Shot Marketplace.
Many people will read this, and think, “that sounds an awful lot like a security; I don’t think they could do that from a legal or regulatory standpoint.” My answer to that, while a little bit terse, is that Top Shot has huge investors and the NBA behind them, so grab a high-priced team of lawyers and figure it out. They have the chance to continue to be a pioneer in the NFT space while rewarding their loyal collectors.
Take the shot.
Disclaimer: This article is not financial advice. The NFT and Cryptocurrency markets are very volatile. Please don’t invest what you can’t afford to lose. Always do your own research before investing.