What is Octopus NFT?
Since the launch of Octopus NFT we’ve received a lot of questions related to not understanding how it works. Therefore, in this article we will explain all the details of this system on specific examples.
Let’s first understand what NFT tokens are as such. This acronym stands for non-fungible tokens, that is, non-interchangeable tokens. This is a commodity or asset represented in digital form. Given that a commodity or asset is unique by nature, the digital token in the form of which it is represented will also be unique. Hence the non-interchangeability of NFT tokens.
It was the ability to “stitch” special data into an NFT token that helped us create a unique affiliate program based on the ERC-1155 standard. There were three types of Octopus NFT tokens:
- Octopus Gold
- Octopus Silver
- Octopus Bronze
Every NFT owner has an opportunity to share his or her referral link with other people and get a part of the profit from their investment. There are four parameters that make our NFTs different:
- Owner Discount. This is a key parameter that reflects the discount a referral receives when investing in the pool. This discount is also received by the NFT owner.
- Partner Remuneration. This is the part of the profit from the referral’s investments, which the first owner of the NFT receives. The NFT owner himself can also be a referral.
- Sale price. The price of the initial placement of a token.
- Issue. The total number of issued tokens.
Let’s look at how all of these parameters work in practice.
The first example with Octopus Gold.
You want to invest $10000 in Octopus Crypto Fund pools. The standard commission for investing in the pools is at the level of 2% of your investment amount. That is, when you invest in the pools you will by default pay 2% of 10000$ — 200$. This money is fully received by the management company. However, if you buy one Octopus Gold for $25, you and your referrals will get more favorable terms. By investing the same $10,000 in the pool, you and your referrals will pay only 1.5% commission, i.e. $150. This is a consequence of the owner discount, which in this case is 0.5%. Of the remaining 1.5%, one-third (0.5%) is an affiliate commission. This means that they will be returned to your account as an Octopus NFT program affiliate. Thus, your personal savings if you invest $10000 in Octopus Crypto Fund pools and buy one Octopus Gold at the same time is $200–100$-25$=75$. In addition, you have token in your hands, which you can resell in the future and benefit from price increase. You not only took advantage of the discount, but also received a valuable asset virtually for free. Having a discount owner, you can also share your referral link with other interested people and receive 0.5% of their investment as a reward.
The second example with Octopus Silver
You want to invest $5000 in Octopus Crypto Fund pools. The amount of commission for investing in the pools is also 2% of your investment amount. That is, if you invest $2000 you will pay $100. Buying one Octopus Silver unit for $10 and investing 5000$ you and your referrals will pay 1.67% commission, i.e. 83.5$. Again, the owner’s discount applies, which is 0.33% here. Of the remaining 1.67%, one fifth (0.34%) is an affiliate commission. These will be returned to your account as an affiliate of the program. Your personal savings if you invest 5000$ in Octopus Crypto Fund pools and buy one Octopus Silver is 100$-66.5$-10$=23.5$. Again, you also have in your hands a valuable asset with excellent growth potential.
Using the following formulas you can make similar calculations, knowing the parameters of the token and the amount invested:
NFT owner’s personal benefit when investing in pools:
(0.02 — OWNER’S DISCOUNT + PARTNER’S REWARD)*INVESTMENT SUM — TOKEN PRICE
Personal profit of a referral, attracted by the NFT owner:
INVESTMENT AMOUNT * OWNER’S DISCOUNT
- If you are the owner of more than one Octopus NFT, the affiliate reward and owner discount will not increase by multiples of the number of tokens you own.
- If you own Octopus NFT of different categories (for example, Gold and Silver), the affiliate reward and owner discount will be determined by the most senior token.
- The partner’s reward is received only by the first buyer of the token. Even if you sell it on the market to another person, you are still entitled to receive remuneration from those referrals who will be attracted by the referral link from the following owners of your token.
- Payment of affiliate commissions is made every three months by one transaction.
Who is interested in buying Octopus NFT? First, investors in pools. The above examples clearly show the savings that await those who buy Octopus NFT tokens before investing in the fund’s pools. Add to this the fact that the examples show situations in which you enter the pool only once. In practice, our customers diversify their investments and will transfer some funds from one pool to another, while you buy Octopus NFT only once. Thus, the benefit will increase manifold over time. Second, for those who want to become a partner of the project. With the development of our project there will be a lot of new pool investors who will want to buy Octopus NFT to get a discount. owner discount. You will be able to either sell them your token at a bargain price or share your referral link with them. In both cases you will make a profit from them.
As a reminder, Octopus NFT can be purchased through our Telegram bot — @Octopus_VC_bot.