# Overview
TokenStrategy is an experimental platform by TokenWorks that creates autonomous, self-consuming "Strategy" tokens.
All Strategy tokens have a 10% trading fee. These fees pool up and are used to support each respective Strategy token in unique ways.
Strategies are autonomous, fully onchain, independent of oracles, and will continue to exist as long as the chain remains operational.
# PunkStrategy: The Ecosystem Token
PunkStrategy ($PNKSTR) was the first Strategy token, launched as an experimental art project in September, 2025. It was launched with the same mechanisms as all current Strategy tokens, with no supply held back for the team.
Each trade that routes through the [v4 hook](https://docs.uniswap.org/contracts/v4/overview) takes a 10% fee with:
* 8% going to buy CryptoPunks for the protocol
* 1% gifted to FundingWorks NFT holders
* 1% to the TokenWorks team.
Trades are NOT enforced through the hook.
The contract is fully renounced and will run in perpetuity, as trading and deployment fees for new Strategies buy and burn $PNKSTR, which reinforces its role as the ecosystem token.
# New Launches and Trading Fees
All tokens are fair-launched with a full supply (1,000,000,000 tokens), then added to the liquidity pool. There is an initial 99% buy fee, which lowers to a resting 10% fee in order to prevent sniping. Since the fees stay within each specific token's ecosystem, high fees are beneficial to the health of a token. Strategies can currently be launched on Ethereum, Base, or Monad.
Fees are enforced on the contract-level using custom Uniswap v4 hooks for all tokens (other than PunkStrategy). This means each trade MUST pay the fee to be executed.
Of the 10% fee:
* 8% goes to the token contract to execute its Strategy
* 1% goes to the creator of the underlying token contract as royalties
* 1% for buying and burning $PNKSTR, the ecosystem token.
# Strategy Types
# NFT Strategies
NFT Strategies are based around an underlying NFT asset; there can only be one Strategy per NFT collection. Only the owner of the corresponding NFT contract can launch a Strategy for their collection. Strategies can exist for ERC721 or ERC1155 collections, while some custom Strategies may be configured for specific tokens or ranges.
Each token has a 1e deploy fee, with 0.8e buying and burning $PNKSTR and 0.2e to TokenWorks. There is a 10% fee on buys/sells of the token.
Of the 10% trading fee:
* 8% goes to the token contract to buy the NFTs of the underlying collection
* 1% for buying and burning $PNKSTR, the ecosystem token
* 1% as royalties to the underlying NFT collection owner
Trading fees pool up to act as a floor bid—this means when the pool gets higher than the price of an asset, a bot will execute the purchase automatically. The Strategy then lists the NFT for 20% higher (this rate can be updated on a per SStrategy basis).
When someone buys the NFT from the protocol, ALL of the funds are used to buy and burn the STR token. This cycle continues in perpetuity.
# Fungible Strategies
Fungible Strategies are based around an underlying fungible asset (i.e., ERC-20 tokens); there can only be one Strategy per fungible token. Only the token owner can launch a Strategy for their fungible token, or otherwise launched by the TokenWorks team.
Each token has a 1e deploy fee, with 0.8e buying and burning $PNKSTR and 0.2e to TokenWorks. There is a 10% fee on buys/sells of the token.
Of the 10% trading fee:
* 8% goes to the token contract to buy the underlying fungible token
* 1% for buying and burning $PNKSTR, the ecosystem token
* 1% as royalties to the underlying fungible token owner
Trading fees pool up to act as the floor bid for a set amount of tokens. When the pool gets higher than the price of the asset, a bot executes the purchase. The Strategy then lists the tokens for 20% higher (but this rate can be updated for each Strategy).
When someone buys the tokens from the protocol, ALL of the funds are used to buy and burn the STR token. This cycle continues, forever.
# Recursive Strategies
Recursive Strategies are **net-new** assets that buy themselves instead of an underlying asset.
Anyone can launch a Recursive Strategy, which will have a 0.01e deploy fee, 0.008e buys and burns $PNKSTR, and 0.002e to TokenWorks. There is a 10% fee on buys/sells of the token.
Of the 10% trading fee:
* 8% goes to the token contract to rebuy the Strategy in the future
* 1% as royalties to the creator of the Strategy
* 0.8% for buying and burning $PNKSTR, the ecosystem token
* 0.2% to TokenWorks
Trading fees pool up, and every 30 minutes all funds in the pool are used to buy and burn the STR token. This fee mechanism encourages long-term holding and prevents overtrading.
# FAQ
**Will this raise the floor price of my NFTs?**
Not directly, and that’s by design. The Strategy mechanics prevent front-running by removing pre-announcements and using a gradual buy-in system that increases the bid price slowly over time. The result is healthier, more organic accumulation rather than artificial pumps.
**Do I need to write the contract?**
No, TokenWorks takes care of all of that. The contracts are audited, deployed, and maintained by the TokenWorks protocol. You simply configure your parameters (fee allocation, Strategy target, etc.) and our team handles the rest. There’s no coding or smart contract deployment required on your end.
**How do you determine what launches next?**
Anyone can launch a Strategy for their collection by paying the deployment fee. The fee helps curate quality projects, shows commitment to the TokenStrategy ecosystem, and reinforces $PNKSTR in the process.
**What can I do with my creator fees?**
Communities may use their creator fees in all kinds of creative ways and in their sole discretion. Some direct them to charity (like Max Pain and Squiggles), others use them to fund ongoing operations or community projects (Like Chimpers and GVC). A few collections use their fees to buy the floor of their own Strategy collection, which permanently burns the Strategy token and strengthens the treasury. Others pool fees to reward long-term holders, host IRL events, or seed liquidity for future tokens. The point is: you can use your fees however best aligns with your community’s goals.
**We already have a community token. How can this help that?**
We’re developing cases where, in addition to the Strategy buying NFTs, a portion of creator fees can be directed toward buying and burning your native ecosystem token. That means your existing token benefits directly from your Strategy’s activity, aligning incentives between collectors, holders, and your broader community.
**Can people snipe the token at launch?**
Not effectively. The buy tax starts at 99% and drops 1% per minute, making early sniping extremely expensive. Those early taxes flow back into the Strategy itself, so even if someone tries, the value ultimately supports your community rather than short-term traders.
**Do I need to provide liquidity?**
No. Strategies are designed to be fully self-sustaining. The contract automatically handles buying and selling through its internal mechanics, there’s no need for a liquidity pool or a paired token. The goal is to eliminate the friction and risk that comes with traditional token launches.
**What happens to the 1% that goes to TokenWorks?**
The 1% platform fee is immediately used to buy and burn $PNKSTR, the platform token. This permanently removes $PNKSTR from circulation, aligning the success of every Strategy with the overall health of the TokenStrategy ecosystem. Every time a Strategy trades, a little more $PNKSTR disappears, creating ongoing value for everyone participating in the network.
**How is the Strategy token price determined?**
The price is algorithmically set by the contract through the Uniswap v4 AMM . Each buy slightly increases the price, each sell slightly decreases it. This ensures predictable, onchain price discovery without external market-making.
**What happens if my collection has low trading volume?**
The activity of the Strategy tends to match to the activity of the collection, but it's not a guarantee. The Strategy will continuously run forever alongside your collection, regardless of the trading activity. When activity picks up, the Strategy will adapt as well.
**Do holders of my NFTs get any direct benefit?**
That depends on how your community chooses to structure it. Some creators design rewards for holders, like access to future drops or treasury benefits. Others focus purely on strengthening the collection’s market position. The Strategy gives you the tools, but how you use them is up to your community.
**What’s the risk?**
Like any onchain experiment, Strategy tokens are volatile and market-driven. The protocol’s mechanics are designed to protect against manipulation, but prices can rise or fall depending on demand. Always make sure your community understands how it works before deploying one.