The NFT market faced significant challenges in 2022–23 due to conflicts over royalties between exchanges. Royalties were crucial for creators' business models but lacked enforcement in NFT smart contracts.

Glue introduces a novel approach to reinvigorate NFTs by enforcing royalties through arbitrage rather than trades. Glue-based Bounding NFTs feature a dynamic mint price that increases with total supply. These NFTs are always redeemable for their collateral, which is funded by the mint price and additional contributions to Glue.

Creators can now tailor the bonding curve to establish a mint/burn economy for their NFTs, leveraging arbitrage to recapture royalties via mint/burn fees.

As a collection's price increases, arbitrageurs are incentivized to mint and profit from the difference between mint and market prices. Conversely, when prices drop, they're motivated to purchase from the market and burn.

These mechanisms are enforced by the NFTs' smart contracts rather than exchange contracts, giving creators complete control over their NFTs' business model.

• Mechanism: Generate NFTs with a dynamic price that increases based on supply, backed by collateral types through a specialized minting contract.
• Impact: Facilitates the creation of NFTs assets with a bonding curves in Glue.
• Benefit: Ensures accurate price discovery via bonding curve while maintaining collateral backing through Glue's mechanisms.

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To better understand the advantages on Glue for your token and your business model you can find out in Understanding Glue

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Coming Soon

We’re going to launch these expansions for you at sticky.finance and as open source code in our Github soon

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