PUNKS Comic #1: Stake or Burn

Pixel Vault has gamified the experience of holding PUNKS Comic #1 in many ways. Collectors have had the choice to:

• Stake for $PUNKS tokens, representing proportional ownership of CryptoPunks

• Burn for access to the Pixel Vault Founder's DAO or Moon DAO

Stake for $PUNKS

PUNKS Comic #1 enables holders to gain proportional ownership over the 16 CryptoPunks which inspired the PUNKS characters. Here’s how it works:

• the 16 CryptoPunks were locked into a vault via the platform Fractional

• Fractional created 100,000,000 $PUNKS tokens to represent ownership of the 16 CryptoPunks in the vault.

• PUNKS Comic #1 holders can stake (i.e. lock away) their comic over 2 years to earn $PUNKS tokens

Burn for DAOs

PUNKS Comic #1 was the key to two of Pixel Vault’s most exclusive DAOs: the Pixel Vault Founder’s DAO (PVFD) and the Moon DAO.

To receive either of those DAO tokens, holders needed to burn their PUNKS Comic #1. This means permanently removing the comic token from the available supply, and giving up the option to stake it for $PUNKS tokens, as well as the right to claim a physical copy.

Collectors had to decide for themselves what they valued most, e.g.

• did they care most about the comic, for its value as a collectible (as an NFT & as a physical comic) and the ability to gain fractional ownership over the 16 CryptoPunks?

• did they want to be part of the Pixel Vault Founder’s DAO, for ownership over the vault of assets, exposure to everything PV creates, and the chance to hang out, and build with all the other passionate Pixel Vault fans?

• or were they more excited by the MetaHero gaming platform, and the opportunity to be part of one of its most exclusive and influential DAOs?

• and the game theory - if more are burning for PVFD or Moon DAO, does that make Comic #1 more valuable, given the $PUNKS earning rate increases and the comic becomes more scarce?

Outcome

The original 10,000 supply of PUNKS Comic #1 has fallen to 3371. Alongside it are now 5902 PVFD tokens, and 710 Moon DAO tokens.

• Fun Fact #1: if you do the math, 3371 + 5902 + 710 = 9,983. Here’s what happened to the missing 17.

• Fun Fact #2: Bad actors exploited a vulnerability which let them burn PUNKS Comic #1 NFTs that they didn’t own, and receive Moon DAO tokens. 58 comics were affected. In response, Pixel Vault compensated those affected with a Special Edition Comic #1, and re-issued the Moon DAO tokens. The exploited Moon DAO is now called The Dark Moon.