The Harambe NFT is Being Fractionalized and Tokenized by a Newly Formed DAO
Mechanism Capital co-founder and partner Andrew Kang has sold 75% of his Harambe NFT to a newly formed DAO that plans to tokenize it. The NFT represents a popular meme of Harambe, a gorilla at the Cincinnati Zoo who was killed after a child entered his enclosure.
In May 2021, photographer Jeff McCurry sold seven photographs of Harambe as one-of-one NFTs on the fifth anniversary of his death. Kang purchased the first NFT from the collection and later announced his plans to fractionalize it.
The Fractionalization Process
Fractionalization involves locking the original NFT in a vault and issuing tokens that represent equal proportions of the NFT. While fractionalizing an NFT is simple, undoing it is much more challenging and requires a majority vote from token holders.
The Sale and Distribution
Kang sold 75% ownership of the Harambe NFT for $5 million. He will receive 25% of the fractionalized tokens, while the remaining tokens will be distributed through an airdrop to other meme tokens such as TRUMP, PEPE, MOG, and TOSHI. These tokens will be used for liquidity provision on decentralized exchanges.
McCurry, the photographer who captured Harambe’s iconic photo, expressed support for the initiative. He stated that $HARAMBE is fractionalized by his one-of-one NFT and hopes that Harambe’s memory lives on.
The Creation of the Harambe DAO
A DAO called the Harambe DAO has been established to govern and support this initiative. The tokens issued through fractionalization will be used for governance purposes within the DAO. Additionally, the Harambe DAO has donated $25,000 to the Dian Fossey Gorilla Fund.
Hot Take: Harambe NFT Goes Deeper into the Crypto Rabbit Hole
The fractionalization and tokenization of the Harambe NFT by a newly formed DAO is an intriguing development in the crypto space. Here are some key takeaways:
An Innovative Approach to NFTs
This initiative demonstrates an innovative approach to NFTs by unlocking their potential for further financialization and utility. By fractionalizing the Harambe NFT, it becomes accessible to a wider range of investors and can be used as collateral or traded on decentralized exchanges.
Expanding the Meme Token Ecosystem
The distribution of fractionalized tokens to other meme tokens like TRUMP, PEPE, MOG, and TOSHI expands the meme token ecosystem. This cross-pollination between different meme tokens creates new opportunities for liquidity provision and community engagement.
Support for Wildlife Conservation
The Harambe DAO’s donation to the Dian Fossey Gorilla Fund highlights the potential for crypto initiatives to support wildlife conservation efforts. This demonstrates how blockchain technology can be leveraged not only for financial purposes but also for positive social impact.
In conclusion, the fractionalization and tokenization of the Harambe NFT mark an exciting milestone in the evolution of NFTs. This initiative opens up new possibilities for financialization, community engagement, and support for important causes. As the crypto space continues to innovate, we can expect to see more creative applications of blockchain technology.
By
By
By