Opinion on Unit

I came across Unit when 0xb1 tweeted about it. They since deleted the tweet.

As described in Unit's recent Medium 🤮 post, there are two parts to this game:

  • a Unit is one of 1000 tokens which can always be bought from you but at double the price you paid for it, minus fees. The sellers also allegedly get 4% of every sale (that's one side of the fees), and all those who are not bought out in the end (when is the end though??) get 1 of 1000 generative NFTs.
  • an Absolute unit is a unique token which gets 1% of every Unit sale, but can also be purchased from under the current owner for double the previous purchase price. It is currently sitting at a price of 256 ether, which means someone paid 128 ether for it. The current and past owners of The Absolute Unit also get NFTs.

Many people (me included) called this a Ponzi. Having given it more thought, however, I feel like that may have been a hasty mischaracterization.

In a sea of Fiverr-produced PFP projects post-BAYC-era, it's refreshing to see a project try something new for a change. So what new stuff is the Unit pioneering?

  1. A Harberger-like buyout mechanic. You can rent a token indefinitely and earn passive income from it, but someone else can snatch it from you by paying you a 95% premium. This does encourage sharing and spreading the game far and wide to get more people to ape in and spend money so those before them get bought out, and yes, this is literally a pyramid, but...
  2. This project seems to be heading in the direction of being a very clever auction for 1000 NFTs. In a world where Pudgy Penguins, a hastily cobbled together Fiverr project, floors at 3 eth for 9000 NFTs that will never do anything but gather digital dust, I honestly don't think 0.8 eth (currently) for a 1 in 1000 NFT is much, relatively speaking, especially if it'll double as early or better access to future games of this type or partner projects, swag, and more.

So what Unit actually is is an interesting bidding pyramid. I'm very curious to find out where it ends up.