Burn, baby, Burn!

There now is 1360 ETH (~$2.5m) claimable by Jenny Token holders who opt to burn their tokens. These assets mostly come for the disposal of NFTs including Cryptopunks, BAYC, Cyberkongz, Tom Sachs Rockets, Squiggles, a Ringer and a Fidenza. Jenny DAO still owns about 140 NFTs and these may be liquidated in the future to provide additional upside for Jenny Token holders.

Remind me, how does the burn work?

Jenny DAO was a radically innovative project when it launched two years ago. It was the first web3 project of its kind to offer on-chain collective ownership rights. Many other DAOs before ours claimed to invest on behalf of their community. However these assets were usually centrally held by the founders or by a small circle of insiders. We felt that web3 could offer much stronger digital property rights. Jenny DAO was created to offer a double utility as a governance token and a fraction of the NFTs inside the vault. Jenny Token holders may at any time burn their tokens and receive their proportional share of proceeds from the NFT sales. Those who wish to rage quit from the DAO may now be incentivized to do so by the 1360 ETH waiting to be claimed.

We have added a tutorial to the bottom of this article.

What if I don’t burn?

There is no time limit on when to burn Jenny tokens. In fact, there is additional upside to holding, as there are still NFTs waiting to be sold within the Jenny collection. We remain the owners of one of the world’s top 5 photography NFT collections. Jenny DAO also holds additional upside from the Steve Aoki x 3LAU Jenny song, the fashion NFT collection and the TinyTap educational content.

The burning mechanism follows Unicly v2’s design. If there is 1000 ETH in the vault and 1M Jenny tokens still in the supply (unburnt), burning 500K Jenny tokens (50% of circulation) yields 500 ETH. At this point there would be 500 ETH left in the vault and 500K Jenny tokens remaining. If the remaining NFTs are sold for 100 ETH and the vault ends up with 600 ETH, someone who burns 100K Jenny tokens (20% of supply) would end up with 120 ETH, instead of 100 ETH if they had burnt when the vault was at 1000 ETH and 1M Jenny tokens in circulation.

The Market is Always Right!

Jenny DAO spent ~$5m acquiring one of the world’s top collections, including a lot of high quality artwork. Most of the great masters of the NFT generation were represented. Our collection included pieces by Artblocks, XCOPY, Oseanworld, Slimesunday, FCKRENDER, Sarah Zucker and many others. Our collection was museum quality. If we had decided to hold onto the collection for another decade, this collection could become legendary and create immense wealth for Jenny Token holders.

However, the market is always right and it has spoken for us. The market cap of the Jenny Token had fallen to almost half of the value of the liquid NFT in the DAO’s possession. The DAO determined that a significant amount of value could be created by disposing of the NFTs and allowing Jenny Token holders to benefit from the proceeds.

So how did the DAO score overall?

Jenny DAO was announced on 10 May 2021, near the peak of the market when ETH was worth ~$4000. As of today, ETH is down over 50%. Meanwhile Jenny DAO budgeted $5m to spend on NFTs and so far was able to liquidate slightly over half of that amount. In ETH terms we have slightly outperformed.

In addition, we pioneered a new form of fractionalization, supported a large number of artists and made lots of frens along the way!

Conclusions for Unicly:

Jenny DAO launched on the Unicly fractionalization platform and a large portion of the UNIC tokens from the fair launch were distributed to Jenny Token holders. Unicly had some early success, with a peak TVL of $100m and being at one point the third largest NFT marketplace by daily volume. Successful DAOs built on Unicly included the uPUNK (with 50 Cryptopunks), uAPE (100 BAYCs including two golden ones) and uFEWO (with a complete Fewocious NFT collection from Christies).

However demand for most of these fractionalized collections has died off. Most of them have liquidated themselves and shut down. Jenny DAO still exists, but the token has experienced low trading volumes at a deeply discounted price to the underlying value of the NFTs. Unfortunately, this has been a trend that we have seen across all other NFT fractionalization platforms over the past two years. Nobody yet has built a fractionalization platform that provides long term benefits to its community beyond some limited early hype.

Unicly will need to evolve and pivot away from serving pure NFT collectives because the product market fit is inexistent. Unicly’s full potential may perhaps be unleashed by moving into the DAO tooling space. From Jenny DAO alone, Unicly’s treasury earned close to $100K in fees. This amount is substantially greater than what most DAO tools are able to extract. DAOs still have the potential to reshape society for the better and offering DAO members direct digital property rights could be a niche where Unicly will excel.

Burn Tutorial:

Farmers:

1. Go to https://www.app.unic.ly/#/farm-manager
2. Find the uJENNY-ETH LP section

1. Click unstake.
2. If you remember staking your LP tokens but you can’t find it here, go to:
   https://etherscan.io/address/0x4a25e4df835b605a5848d2db450fa600d96ee818#readContract
   Go to function 15 — userInfo and input 18 and your address, respectively. Copy the first output (amount).
3. Go to https://etherscan.io/address/0x4a25e4df835b605a5848d2db450fa600d96ee818#writeContract
   Go to function 12 — withdraw. Input 18 and the amount, respectively. Click write, and sign the transaction.

Liquidity Providers:

1. Once you have your LP tokens, you should remove liquidity. Go to: https://www.app.unic.ly/#/account
2. Scroll down to Your Pools and find your Jenny token pair.
3. Click “Manage”, and then “Remove”.
4. Click “Max” to remove your whole liquidity position.
5. Approve and sign the transaction required to remove liquidity.

If you are a uJENNY (Jenny v1 token) holder:

1. Go to https://jenny-migration-tool.vercel.app/
2. Migrate all of your uJENNY to JENNY tokens using the migrator tool. 10 uJENNY = 1 JENNY, because the JENNY supply is 10% of the uJENNY supply.

Once you are holding liquid JENNY tokens:

1. Go to the JENNY vault: https://www.app.unic.ly/#/utoken-contract/0xcb4d749fd1ff081d6fea3bd978de87603e098e63
2. Find the “Tokenomics” section

1. Click “Approve to Burn” and sign the transaction.
2. Once the approval is done, you should be able to click “Claim & Burn”. This will burn your JENNY tokens and you will get a portion of the ETH locked in the vault.