NFT Project Anatomy 101

Description
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This diagram models the economics and resource flow of an NFT marketplace ecosystem with emphasis on the lifecycle of NFT sales, both in primary and secondary markets, and the distribution of profits. It encapsulates the processes of buying NFTs from a primary market, their resale on a secondary market, and the mechanisms of profit allocation among different stakeholders, including a DAO (Decentralized Autonomous Organization), core team, and feature development funds. The system tracks metrics such as NFTs on the secondary market, sale floor price, secondary market floor price, and cumulative profits, translating these into actionable insights for financial distribution.

Significantly, it incorporates dynamic and conditional elements such as resale frequency and total computed profit per NFT resale using register nodes with formulas for real-time calculations. Furthermore, the diagram distinguishes between profits generated from primary and secondary markets and then divides these profits according to designated percentages among DAO income, core team budget, and expense allocations for new feature development. The strategic use of gates and converters facilitates the transformation of resources, simulating the conversion of NFT sales into fungible token profits and the decision-making process involved in allocating funds towards future development or payback. This reflects a comprehensive model for managing the economics surrounding NFT sales, highlighting the flow of resources through various stages of the marketplace and the pivotal role of decision nodes in influencing the ecosystem's financial health and growth trajectory.
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