Owners of our NFTs are able to swap NFTs for $SNAFU tokens, a digital currency (ERC20 token) based on xDai blockchain.
The NFTs of the SNAFU collection can be swapped at any time for a maximum amount of 1000 $SNAFU. The value in $SNAFU of our NFTs are dictated by the rarity of the NFT: for example, an NFT with rarity 1 (i.e. there is only one edition) will have a value of 1000 $SNAFU, on the contrary, an NFT with rarity 100 will have an equivalent value of 10 $SNAFU.
Similarly, anyone can swap $SNAFU for an NFT present within the pool (the cost will always be dictated by the rarity of the NFT).
Thanks to this mechanism, the SNAFU collective intends to give liquidity to its artworks: the NFTs can always be resold even without bidders.
Each time an exchange from NFT to $SNAFU takes place, 5% of the $ SNAFU will be sent to the DAO, and the community will vote on what to do with that money.
The smart contract mints and burns $SNAFU tokens during the swap: if you swap your NFT for $SNAFU then the smart contract is minting $SNAFU tokens for you and increasing the supply, otherwise, if you swap $SNAFU tokens to buy an NFT then the smart contract will burn those $SNAFU, decreasing the supply.
Click here to review the smart contract on Blockscout.