> For the complete documentation index, see [llms.txt](https://docs.tokenstrategy.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tokenstrategy.com/strategy-types/nft-strategies.md).

# 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.