# NFTs Financial Model and Passive Incomes

### The Nominal Value of GFY DAO NFTs

The nominal value of an NFT is the calculated value of the NFT based on the total volume of the DAO's treasury divided by the total number of NFTs. This value represents the share of the DAO's assets that each NFT holder owns.

It's important to note that the nominal value is a theoretical value and may not reflect the actual market value of the NFT. The market value of an NFT can fluctuate based on various factors, such as demand and supply, the performance of the underlying assets, and overall market conditions.

The nominal value can be a useful metric for investors to understand the underlying value of their investment in the DAO. It can also help to inform decisions related to buying or selling NFTs within the DAO.

{% hint style="info" %}
**The nominal value of NFT = Total Treasury Volume / # of NFTs**
{% endhint %}

### Passive Income

#### **Projects' Airdrops**&#x20;

When the GFY DAO decides to invest in a project, it will negotiate with the project team to obtain a portion of the project's airdrop allocation. This means that the project team will set aside a certain number of tokens to distribute to the DAO members as a way to incentivize the DAO to invest in their project.

GFY DAO will use these airdropped tokens as a way to reward its members who have voted for the project.&#x20;

#### **Carried Interest Airdrop**

Carried interest is a form of performance-based compensation that is commonly used in the investment industry. In the context of your investment DAO, carried interest refers to a portion of the profits earned from the sale of tokens that are invested in projects.

When the DAO invests in a project, it may choose to sell its tokens at a later date when the value of the tokens has increased. When this happens, the DAO will earn a profit from its investment.

<figure><img src="https://3601254919-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F3aJHdLS91RzMBSd0KKJ4%2Fuploads%2F7gp5vktXC7FecRTbXERR%2FGFYDAOcarriedinterest.png?alt=media&#x26;token=2d437a91-f5ad-4b4f-a850-1544db38b2ea" alt=""><figcaption></figcaption></figure>

Under the carried interest model, the DAO will return 80% of the profit to the DAO treasury to be reinvested in new projects. The remaining 20% of the profit will be distributed to the team, proposer, and voters who participated in the investment decision as a carried interest.

The carried interest is an incentive for the team, proposer, and voters to make decisions that are in the best interests of the DAO. It also provides a source of passive income for those who have contributed to the investment decision-making process.

It's important to note that carried interest is not guaranteed and is dependent on the success of the investments. If the DAO's investment in a project does not result in a profit when the tokens are sold, there will be no carried interest to distribute.
