Do you like the thought of investing in real-world assets such as property, fine wine, art and watches but don’t know where to begin?
Tangible is a marketplace where you can buy and sell real-world assets via TNFTs (Tangible Non-Fungible Tokens), either in their entirety or in fractions. Most importantly, these assets can be claimed/redeemed at any time.
By holding $TNGBL you can earn a share in the marketplace trading fees (passive income). A burn mechanism is also in place for token price appreciation.
Let’s dig in…
Why I like Tangible
Firstly, I love wine. Secondly, I’ve not had the best experiences with real estate / property. I still see the benefits. I just don’t want the headache and the slow process of buying/selling/managing.
Same goes with anything physical really. Even the act of moving crypto into fiat to then have to source and purchase an alternative investment is an effort.
Yes, I am lazy!
And, whilst I do spread my risk, almost everything is still in one big overall crypto bucket.
I see Tangible as an easy way to hedge against my crypto holdings.
It allows me to invest in things that are not correlated with crypto markets without ever having to leave the crypto ecosystem.
And they give me an easy way to liquidize them should I ever want to via their Instant Liquidity Engine..
Furthermore, the innovations with NFTs are interesting: I can purchase a complete item and at any time (TNFT), choose to fractionalize it and sell the fractions on the Tangible marketplace.
What size is the market?
Huge! Global trading for collectible goods is estimated to be over 154 billion dollars (USD) according to Tangible. However, other research says it is much higher at $412 Billion in 2020 and growing (source).
And currently these markets are not easily accessible to people like you and I.
Tangible believes their TNFTs will do to collectible goods what the internet did to retail; easy and accessible trading that revolutionizes and leads to an even bigger market.
And then there’s the property investment market…🤯
How does Tangible marketplace work?
Tangible lists real-world assets from reputable, heavily-audited suppliers. They then list these items on their marketplace to be bought using USDC. When sold, an individual NFT is minted to represent it.
This NFT is known as a TNFT (Tangible NFT) and is sent to the buyer's wallet.
The TNFT can be sold on the marketplace, fractionalized and sold in parts or redeemed at any time for the real-world item.
The real-world item is held in secure storage, a Tangible Vault or alternative storage eg. the wine partner is Bordeaux Index, one of the top five fine wine distributors in Europe and then stored in Octavian Vault, the “world's number one in fine wine storage” (https://www.octavian.co.uk).
For items traded on the marketplace, a 2.5% fee is charged.
Tangible also has an “Instant Liquidity Engine” whereby they will buy back any time at approx 10% less than market value, instantly. They then sell it on the marketplace at a discount.
How is the marketplace fee distributed?
Each marketplace trade incurs a fee of 2.5%.
Of the fees collected, ⅔ (66.6%) is distributed to TNGBL token holders via staking. The other ⅓ (33.3%) is used to buy and burn TNGBL tokens.
As such, people who stake their TNGBL can earn a passive income whilst also (hopefully!) seeing price appreciation of the token, not only through growing utility and awareness, but through the burning of TNGBL tokens.
How does fractionalization work?
A full TNFT (i.e. a complete item) and be split into 10-10,000 identical ‘fractions’. These fractions can then be sold on the marketplace.
Any storage fees or earnings attached to the original NFT are also split according to the fractions.
Fractions cannot be re-fractionized ie. if a complete item is split into 100 fractions and you purchase 1 fraction (1% of the original), you cannot fraction your 1% further.
Fractions can be reassembled / de-fractionized if you own 100% of the fractions.
Fractions cannot be sold individually via the Instant Liquidity Engine, however if the majority of fractions wish to sell then the process can be initiated and the sale proceeds would be distributed to the fraction holders.
What is the ‘Instant Liquidity Engine’?
The Instant Liquidity Engine allows users to quickly sell their TNFTs at around 10% below market value (% varies per item) to Tangible – no need to even list it on the market place using the $TNGBL token..
Click, click, click. Ka-Ching!
The smart contract for the Instant Liquidity Engine then lists the item on the Tangible marketplace at a discount (i.e. below market price…but still leaving Tangibile with a little bit of profit).
This is a win-win-win; buyers, sellers and Tangible.
The Tangible $TNGBL tokenomics take a while to get your head around.
There is a max supply of 33,333,333 tokens.
$TNGBL is on the Polygon ($MATIC) network
33% of marketplace revenue is used to buy and burn the token…which will make $TNGBL deflationary and more scarce over time (after all 33,333,333 have been released…ETA around a year but depends on activity – see more info below).
Users are encouraged to lock their TNGBL tokens in ‘3,3 NFT’s. Doing so will earn a share in 66% of marketplace fees (distributed in USDC).
Passive income opportunities
The primary, long-term opportunity is locking tokens in “3,3 NFT”s so you qualify for a share in the 66% marketplace revenue.
This is forever!
It's part of their tokenomics and business model to share revenue with “3,3 NFT” holders (essentially staking), but in terms of “income” it's a long-term play. Marketplaces take a long time to build users and thus revenue – for substantial fees/revenue. we're talking years, not months.
There are also two really good “super-early” opportunities that are open until all 33,333,333 tokens have been allocated;
- Multipliers: lock tokens for a multiplier (“3,3 NFT”)
- Early adopter: buy a product (“early user TNFT”)
Early buyers & multiplier rewards:
Users are given the opportunity to lock their tokens for up to 48 months and gain a multiplier on the number of tokens they receive. This facilitates $TNGBL trading and price in the early days as the business and value proposition builds.
The longer the lock, the bigger the multiplier.
The locking is done via a pretty cool system whereby you pretty much create an NFT; simply enter how many TNGBL tokens you wish to lock and for how long.
These are known as ‘3,3+ NFT’s.
Day one starts at 25X, by day thirty it’s 14.6X, month six is 10.9 and one year, 7.4X.
These multipliers are limited!
They are only available until the max supply of tokens has not been exceeded (including multipliers etc).
3,3+ NFTs can be sold on the marketplace.
Despite the original $TNGBL being locked, a portion of the multiplier rewards will be available for claiming per block. There will also be an option to claim more, however you will need to sacrifice part of your multiplier to do so.
Whilst the “multipliers” are limited due to max tokens, 3,3+ NFTs can still be minted with a minimum lock period of 2 months to access the 66% USDC rewards.
Early adopter rewards
To encourage adoption of the Tangible marketplace a percentage of the purchase price of your TNFT (eg a bottle of fine wine) is used to purchase $TNGBL and then attached to your TNFT.
They are locked in for a period of time and result in an “early user TNFT”, which uses the same multipliers as 3,3+ NFTs (see previous section)….and allows early adopters (early buyers) to receive bonus rewards from the 66%.
Again, these “early user TNFT”s are only available until the $TNGBL max supply is reached.
The % allocated to $TNGBL from these purchases varies depending on the category;
- Wine: 10%
- Sneakers: 10%
- Watches: 5%
- Gold: 1%
And…these “benefits” pass down to fractions.
If an “early user TNFT” is fractionalized, each fraction will earn their share of the “early user” rewards.
There are lots of graphs and more details here for everything regarding the tokenomics and rewards: https://docs.tangible.store/tangible-token-tngbl. Math-wizards will love it.
Links to primary team members of Tangible are below. As of April 2022, they are a team of 15.
- Jag Singh, CEO
- Andy Deemer, CPO
- Michael Slatkin, CMO
- Josh Singh, Operations
- Veljko Mihailovic, Engineering
- Daniel Kuppitz, Blockchain Architect
Tangible DAO and structure
Although in its infancy, Tangible aims to be as close to a DAO (decentralized autonomous organization) as possible, meaning the token-holders have voting and governance rights. Changes such as those to smart contracts etc need to be voted in.
However, obviously dealing with real world assets (RWA), there are limitations. There are another two Tangible entities that make the structure complete:
Tangible Labs (TNFT ltd BVI)
Tangible Labs mints and sells TNFTs. Contributors to the DAO and smart contracts (cannot make any changes after deployment).
Tangible Custody (BTS TNFT ltd UK)
Tangible Custody acts as a supplier & custodian for tokenized real-world assets.It sources goods and in some cases the storage (eg wine). It also manages the properties and operates the Tangible front end.
There are several likenings to Uniswap and Uniswap Labs. More details: https://docs.tangible.store/legal
Summary & Resources
With an innovative NFT system, emission of $TNFT and “buy back and burn” all baked in, what’s not to love?!
- Website: https://www.tangible.store
- Docs: https://docs.tangible.store
- Twitter: https://twitter.com/tangibledao