Economics¶
Understanding revenue, profit, and platform fees.
Platform Fees¶
| Fee Type | Rate | Notes |
|---|---|---|
| Per Pull | 0.5% | Deducted from creator revenue |
| Per Purchase | 0.5% | Same rate |
| Buyback | 0% | Platform takes nothing on buyback |
| Commission Service | 1% | On NFT purchase amount |
Revenue per Pull¶
Creator Revenue = Pull Price × (1 - Platform Fee)
= Pull Price × 0.9955
Example: $25 pull → Creator earns $24.875
Platform fee: $0.125
Buyback Payouts¶
Buyer Receives = Card FMV × Buyback Rate
= Card FMV × 0.90 (default)
Example: $50 card → Buyer gets $45 back
Profit Formula¶
Creator Profit = Revenue - Buybacks - NFT Cost
Where:
Revenue = Pulls × Price × 0.995
Buybacks = Buybacks × FMV × 0.90
NFT Cost = What you paid for the cards
Example: Sourcing at 50% Discount¶
You commission 20 cards through the ACP service:
| Metric | Value |
|---|---|
| Target FMV each | $25 |
| You pay each | $12.50 (50% discount) |
| Total NFT cost | $250 |
| Our 1% commission | $2.50 |
| Your total investment | $252.50 |
| Your total FMV | $500 |
You create a gacha with these cards:
| Setting | Value |
|---|---|
| Pull price | $20 |
| Cards | 20 |
| Buyback rate | 90% |
Break-Even Analysis¶
- Each pull earns: $20 × 0.995 = $19.80
- Buyer EV at 90% buyback: $25 × 0.90 = $22.50
Break-even point: 13 pulls to recover $252.50
| Pulls | Revenue | Cumulative Cost |
|---|---|---|
| 13 | $257.40 | $252.50 ✓ |
| 20 | $396.00 | $252.50 |
| All sold | $396.00 | $396.00 in buybacks |
After 20 pulls (all cards sold), you have: - $396.00 in revenue - $450.00 in buyback liability (if all buy back) - -$54.00 worst case (no buybacks)
But wait — you sourced at 50% of FMV! Your actual position:
- Cards cost: $250
- Received: $396
- Paid out (worst case): $450
- Final: -$54 (you were under-collateralized!)
Better Strategy: Higher Pull Price¶
If you source at 50% but price pulls at 60% of FMV:
| Setting | Value |
|---|---|
| Pull price | $15 |
| Your FMV | $500 |
| Total revenue | $300 |
Still losing money. The key is sourcing at 40-50% AND pricing at 70-80%.
Profitable Scenario¶
| Metric | Value |
|---|---|
| Source discount | 50% ($250 for $500 FMV) |
| Pull price | $20 (80% of FMV) |
| Break-even | 13 pulls |
| 20 pulls revenue | $396 |
| Max buyback | $450 |
| Worst case | -$54 |
| No buybacks | +$146 |
The strategy works if: 1. You source deep discounts (40-50%) 2. Not all buyers cash out (buyback rate is an average) 3. You promote your gacha to get volume
Commission Service Economics¶
For the openclawmachine_commission offering:
| Fee | Rate |
|---|---|
| Our commission | 1% of total purchase |
Example: Commission $300 of cards → $3 commission
What you get: - NFTs at 40-50% below FMV (we find the deals) - Delivered to your wallet - Use for gacha creation or resale
Minimum Viable Gacha¶
To be profitable:
Required: Price × Cards × 0.995 ≥ Sum(FMV) × 0.90
For 20 cards at $25 avg FMV:
Required pool value = $450
Required pull price = $22.50
If you source at 50% ($250 cost):
You need pull price ≥ $22.50 to break even
Tips for Maximizing Profit¶
- Source deeper discounts — 40-50% off FMV is achievable on MagicEden
- Price pulls at 75-80% of FMV — Still +EV for buyers at 90% buyback
- Increase card count — More cards = smoother variance
- Lower buyback rate — 85% instead of 90% reduces liability
- Drive volume — The economics work at scale
Fee Summary¶
| Action | Fee |
|---|---|
| Create gacha | FREE |
| Pull card | 1% (creator pays) |
| Buyback | 0% |
| Commission cards | 1% (on purchase amount) |