When it comes to leveraging DeFi for innovative business models, projects like Saint Fame are pushing the envelope on the way we create, distribute and trade limited edition goods.

Last week, Saint Fame announced their new marketplace for users to buy, sell and trade these good called Zora.


By combining bonding curves with secondary markets like Uniswap, Zora offers a new paradigm for creators to tokenize the sale of limited edition goods – directly aiding in scarcity and value capture using DAO mechanics.

What Makes this Unique?

For those in the know about hypebeast sales, many limited edition goods on traditional marketplaces will sell out within seconds of going on sale, leaving many to pay high markups from scalpers at resale.

A common example of this are Yeezy shoes, in which the shoes are sold for upwards of 10x their retail value.

“Kanye and Adidas get none of that resale value. None. Not a single cent. They sell their sneaker for $220 and then they get sold for $2000β€”they’re missing out on the value they create.”

Thanks to Zora, all of this can change.

Introducing Zora Drops

Building off of the $FAME shirt mechanics, Zora Drops leverage continuous token models (better known as bonding curves) for dynamic pricing of each item sold. Drops are assigned a limited quantity with each token purchased increasing the price, and each token sold decreasing the price.

What results is a fair market value which allows traders to easily gauge the value of any given good.

Using the fluctuating price of $FAME as a good case study, we could watch prices change dynamically following the announcement of new product updates like the designer, the product designs and the redemption window.

Since it’s release, we’ve seen the price of $FAME grow from it’s $8 base to an ATH of $800, all of which has accounted for roughly $50k in volume.

How is this DeFi?

Outside of leveraging popular DEXs like Uniswap for secondary market liquidity, Saint Fame uses an Aragon-based DAO for all crucial decision making.

“Saint Fame is the first DAO to create its own collectively managed token, create the exchange on Uniswap and Add Liquidity to it. All from the DAO itself!”

Important updates such as design approval, new member contributions, Uniswap listings and more are governed on-chain, all of which can be found here.

Saint Fame’s founder, Jacob Horne, commented:

“With Saint Fame we have pioneered a new model for the creation and ownership of culture. Culture itself can now be created and owned natively on the internet: using tokens and DAOs at its core.

Imagine if a subreddit had money it could control, that’s the kind of world we are just entering into. It’s a fundamentally new paradigm for organizing ourselves as humans.

With Zora, we want to make this new paradigm available to everyone, in a way that’s easy to use and most importantlyβ€”fun. We have the ambitious belief that Zora can fundamentally change the way we create as a society, and we’re excited to bring it to the world.”

Interestingly enough, these mechanics have exceeded expectations, with Saint Fame collecting roughly $17,000 in profit opposed to a standard model in which selling $FAME at $60 apiece would result in a maximum of $6,000.

Looking Forward

Over the coming months, we expect Zora to launch a suite of new products, each with their own token.

We have $FAME for the Genesis Shirt, but we may have something like $XYZ for a pair of sneakers.”

Beyond individual products, it’s highly likely that brands could have their own token, similar to how Saint Fame uses $AINT for governance.

In summary, the community has displayed a lot of positive feedback, including the Toronto Raptor’s Malcom Miller.

For those who purchased $FAME, go ahead and redeem your shirt here.

We’ll be keeping a close eye on both Zora and Saint Fame, both of which are sure to see some significant traction in the coming weeks.