Coming soon from PussyDAO: an NFT you can wear

Buying panties with the words “highly liquid” on them isn’t something most people expect when looking at non-fungible tokens (NFTs).

But as odd – or shocking – as it might sound, buying NFTs attached to clothes is a trend that is quickly picking up steam. Many companies, including Adidas, Gap, and Patron Tequila have all launched redeemable NFTs. Luxury jewelry retailer Tiffany & Co. also launched a collection of 250 NFTs redeemable for a pendant called an NFTiff.

Joining this wave is Izzy Howell, the creator and CEO of PussyDAO. The platform will be launching its line of redeemable NFTs – attached to lingerie also created by Howell – in the winter of 2022. She isn’t releasing the details of the drop yet, but it will launch on the Solana blockchain.

If the concept is new to you, here’s how it works: Redeemable NFTs can be bought and sold just like standard NFTs, but the difference is that if you like the object in the picture, you can actually have it.

To redeem your NFT, you have to eliminate it from circulation, otherwise known as burning. The holder of the object – be it panties, shoes, or something else – will then be required to send that item to you.

Tokenomics and liquidity

No, trading your NFT for a pair of panties isn’t a joke, but it did start as one, at least in Howell’s case.

The CEO, who was the head of growth at decentralized finance (DeFi) protocol Cypher at the time, says she was up late talking with “guys on the team” and some of Cypher’s investors.

“We were discussing tokenomics, and all the guys just kept saying over and over again, ‘Liquidity is all that matters.’ Liquidity, liquidity,” she says. “For whatever reason, the idea for the panties just popped into my head, and I wanted to make a pair of panties that said ‘highly liquid.’”

But the people Howell told about the joke would often say that they wanted to buy a pair of those panties – if she ever made them. So she decided to make 50. Her plan was to sell them at an upcoming event in Salt Lake City, Utah and to donate all the proceeds to women in the Web3 sector.

But Howell says a friend advised her to do what Unisocks had done and tie the panties to redeemable NFTs.

Unisocks are Unicorn-themed socks linked to NFTs that first went on sale in 2019. The Socks NFT collection currently has a floor price of 18.75 ETH, giving it a fully diluted valuation of roughly US$9 million, according to Nansen.ai. Of the 500 socks released as NFTs, 199 have been redeemed so far.

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