It is a hybrid of DeFi and NFT, where trading the token directly increases the liquidity and floor price of the associated NFTs, creating a closed loop: more trades → more commissions → NFT purchases → resale at a markup → token buyback and burn.

How does the flywheel work?

• Trading fees: Each token transaction is subject to a 10% fee (usually 8% on NFTs, 1% on collection royalties, 1% on the “parent” token such as $PNKSTR).

• Floor-NFT purchase: Funds are used to purchase NFTs at the minimum price (floor) from the associated collection.

• Relist with a markup: NFTs are relisted at a 20% markup (1.2x), generating profit on sale.

• Buyback and burn: Proceeds are used to buy back and burn the token, reducing supply and increasing the price.