# 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.


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