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TokenStrategy

TokenStrategy
12-02-25•tokenstrategy.com/

Project Overview

TokenStrategy is a token launching platform, a spin-off from PunkStrategy, to automate the flipping of NFT collections.

Mechanics

  • NFT collection owners can permissionlessly launch "Strategy tokens" for their collection.
  • Each token has a 10% buy/sell tax.
  • 8% of each trade is added to the NFT-buying pool.
  • 1% is distributed to the NFT collection creator as royalties.
  • 1% is taken to buy and burn $PNKSTR, the ecosystem token.
  • Fees from trades accrue in the smart contract until enough has been accumulated to buy the floor NFT of the collection.
  • Anyone can trigger the buyTarget' function, but this is usually deployed by a bot taking the arbitrage between our bid and the current floor.
  • The NFT is then listed for 20% higher than its purchase price.
  • If the protocol-owned NFT sells, all ETH is used to buy and burn the token.

Backstory

  • With PunkStrategy dominating mindshare on the timeline, every project was looking to fork the protocol for their own collection.
  • I figured that it would be better to launch a platform as fast as possible to capture this attention (and volume) before an alternative could launch.
  • The code was quite complex, so luckily any forks died due to rugging or exploits.
  • We launched multiple projects on the same day to give them all shared attention, then eventually released one per day (Bored Apes, Moonbirds, Pudgy Penguins, Squiggles, Meebits, etc).
  • Over the next few months, we made the platform permissionless to launch (must be the owner of the collection).
  • We eventually expanded to strategies that would buy ERC1155 and ERC20 tokens. We also launched "Recursive" strategies that would buy and burn themselves, with no underlying asset.

The Launch

  • Each launch starts at the same price, roughly $50k marketcap, and has a 99% buy tax that lowers by 1% each minute.
  • We worked as fast as possible, and sadly the contracts had a few bugs that were eventually ironed out in later versions.
  • The platform was the meta on crypto Twitter for a few weeks, with projects begging us to launch strategies.
  • It was a balancing act between keeping attention on the already-launched strategies and letting new projects join.

What Went Right

  • As of May 2026, over $20m in fees generated across the platform (excluding PunkStrategy); see full analytics on Dune. (8% bought and relisted NFTs, 1% as royalties, 1% to PNKSTR buy & burn)
  • 4777 NFTs are currently held across all strategies and the total marketcap is $35m.
  • Cumulative marketcap of all tokens hit over $500m (incl. PunkStrategy which reached $300m)
  • After the Squiggle bug, we made the contracts upgradable and routinely implemented fixes (Strategies would only overpay up to 0.01e, NFTs listed on OpenSea/Seaport, etc.)
  • Many projects (Chimpers, Good Vibes Club) adopted their strategy as their official project token.
  • We made NFTs fun again.

What Went Wrong

  • Many users were unable to sell for a few hours day one.
  • As the fees in the contract get higher, they eventually surpass the floor price of the asset and a bot takes the arbitrage between the two. For Punks, we often overpay ~0.1e per Punk. For cheaper assets, this is a huge delta and was a large issue at launch.
  • This caused the strategy to overpay 10e+ on some assets. A lot of this value left the ecosystem rather than accumulating and relisting NFTs.
  • SquiggleStrategy had a reentrancy bug allowing malicious actors to switch out lower value NFTs, essentially killing the strategy.
  • The first 8 strategies are considered "legacy" and are non-upgradable, cannot list on OpenSea, and overpay for their assets.
  • Like everything in crypto, attention eventually waned and volume slowed.

Wrap-up

What started as an art project with PunkStrategy turned into a whole token meta. We traded the purity of an idea for virality and I'm still not sure how I feel about it.

That being said, we got to keep tweaking launch mechanisms and feel like the decreasing tax that buys/burns the token is basically perfect by now, and will be used for future launches.

Even 6+ months later, we're still seeing activity in strategy tokens because they still hold NFTs. If floors ever increase and volume increases, I believe strategies will take over once again.

By design, they all run autonomously without any need for my input, and will run as long as Ethereum does. This gives me the freedom to work on new ideas while we wait for the froth of a CryptoPunks bull run.