TokenWorks
TokenWorks is a crypto development studio behind projects including PunkStrategy and Ten Thousand Tokens. Its projects have explored token launch mechanisms, NFT financialization, token supply dynamics, and fee-based economic models. [10]
Overview
TokenWorks is a two-person, self-funded development team founded by Adam (@Rhynotic) and Teto (@tetonotsorry) that focuses on experimental, crypto-native applications built on Ethereum. The team has developed projects including PunkStrategy, Ten Thousand Tokens, FundingWorks, and Fake World Assets (FWA), spanning NFT mechanisms, token launches, and on-chain financialization. FWA is an Ethereum-based NFT gacha protocol that uses randomized on-chain NFT distribution, allowing users to deposit ETH-backed NFTs into a pool while others pay ETH to receive randomly selected assets. The protocol uses Chainlink VRF for verifiable randomness in NFT selection and introduced the FWA token as an incentive mechanism for participants. [2] [3]
Projects
Fake World Assets
Fake World Assets (FWA) is an Ethereum-based on-chain NFT gacha protocol developed by TokenWorks. Users can deposit NFTs from supported collections into a shared pool, assigning each asset an ETH backing amount that influences its probability of being selected. Other users pay ETH to make randomized pulls, with selection determined by Chainlink VRF. When an NFT is selected, the winner can keep it, return it to the pool, or receive 85% of its ETH backing in either ETH or FWA tokens. The protocol's pool and selection probabilities change as users add or remove NFTs and adjust their backing amounts.
FWA also incorporates an incentive system for both purchasers and depositors. During its initial 15-day emissions period, 1% of the FWA token supply was distributed daily to each group, while external purchases of the token were initially disabled, making protocol participation the primary way to obtain it. Depositors earned a share of pull fees while their NFTs remained in the pool, with the amount and duration of ETH backing affecting their selection exposure and potential fee earnings. The protocol initially supported dozens of NFT collections and indicated plans to expand to additional asset types, while later stages were expected to introduce token buybacks and other mechanisms after the initial emissions period. [2] [11]
FWA Token
FWA is the token associated with the Ethereum-based NFT gacha protocol developed by TokenWorks. It functions primarily as a reward and incentive token within the protocol, where users can earn FWA by depositing NFTs into the gacha pool or participating in NFT pulls. During the initial launch period, direct purchases of FWA were disabled, so tokens were distributed through protocol participation and daily emissions to purchasers and depositors. The token is tied to the activity of the underlying gacha system, with its distribution and utility connected to NFT deposits, pulls, and associated fees.
The token's launch also included a revised contract following an exploit of the original version. The vulnerability allowed an attacker to manipulate the protocol's state around a Chainlink randomness callback and obtain CryptoPunk #5450; TokenWorks subsequently paused the protocol, deployed an updated contract, and compensated the affected NFT owner. After the initial emissions period, the project planned to enable open-market purchases and introduce mechanisms involving token buybacks, distributions to participants, and token burns. As a result, FWA's role within the ecosystem is closely linked to continued activity and transaction volume in the NFT gacha protocol. [4] [12]
Ten Thousand Tokens
Ten Thousand Tokens is an Ethereum-based token launch protocol built around a fixed collection of 10,000 NFTs, with each NFT providing the ability to launch one unique ERC-20 token. The NFTs are initially soulbound and become transferable only after the full collection is minted. Once the collection sells out, an NFT holder can burn their NFT to deploy a token through a standardized Uniswap V4 pool with predetermined launch parameters. Each launched token has a 1 billion-token supply and uses a buy-side tax that declines from 99% to 1% over 98 blocks, while sells are subject to a 1% fee. The excess fees collected during the launch-tax period are converted to ETH and placed into a buyback reservoir, which can be used to purchase the corresponding token from the market and permanently remove those tokens from circulation.
The protocol also routes a portion of trading fees from launched tokens to participants who have not yet burned their NFTs. Of the 1% resting swap fee, 50% goes to the NFT holder who launched the token, 30% is distributed proportionally among the remaining unburned NFT holders, 10% goes to TokenWorks, and 10% is allocated to the PunkStrategy buyback wallet. As NFTs are burned, the 30% holder allocation is divided among a progressively smaller group, increasing each remaining NFT's proportional share of future fees. However, these distributions are entirely dependent on trading activity from launched tokens and do not represent guaranteed returns or yield. The protocol therefore combines a capped supply of launch rights, standardized token launches, fee routing, and token buybacks into a system where burning an NFT represents an irreversible decision to launch a token while retaining the NFT represents a claim on a contingent share of fees from future launches. [5] [13]
PunkStrategy
PunkStrategy (PNKSTR) is an Ethereum-based meme token and experimental on-chain financialization project that links a fungible token to the CryptoPunks NFT market. The protocol uses transaction fees from PNKSTR activity to fund a treasury that purchases CryptoPunks on the secondary market. Acquired NFTs are then relisted at a target price of twice their purchase price. If an NFT sells, the resulting ETH is used to purchase PNKSTR from the open market, with the acquired tokens sent to a burn address and permanently removed from circulation. The system therefore creates a feedback loop in which PNKSTR trading activity funds NFT acquisitions, while successful NFT sales generate capital for token buybacks and burns. PNKSTR serves as the primary economic asset within the PunkStrategy ecosystem, with its function centered on the project's buy-and-burn mechanism rather than conventional applications such as payments or governance. The project also incorporates NFTStrategy, through which 1% of transaction activity is allocated toward purchasing and burning PNKSTR. Its model therefore connects the token's supply dynamics to the liquidity and sale activity of CryptoPunks, making protocol activity and NFT market conditions important components of the system. [7] [8]
