This post about Pudgy Penguins is a prompt for people to see a little differently wrt to the usual topics related to ‘onboarding’, ‘normies’ and ‘developer adoption’ that we see here.
Here is CEO Luca Netz describing his thought process on the Empire podcast.
“I’m not selling them on NFTs right now,” he says. “I’m not selling them on Web3. I’m really selling them on a cute, iconic, prolific, Pudgy Penguin character.”
“The problem with NFTs today,” Netz says, “is everyone’s trying to force them into a crypto blockchain Web3 NFT narrative.”
“It is the biggest mistake out of all of these major Web3 crypto blockchain-oriented brands,” Netz says. “It’s really just a back end. It’s not a front end.”
Instead of expecting consumers to start in the daunting digital space, real-world Pudgy Penguin toys act as the front end, introducing the IP and then escorting users to Web3. Each toy comes with a birth certificate, Netz explains. “On that birth certificate, there’s a QR code,” he says.
The code allows the purchaser to sign up via email and password to create a Pudgy World account, which is a custody wallet solution, unlocking four free NFTs via a gasless experience.
“That’s how I onboard people.”
"I onboard people by selling a $10 toy that has a QR code and a birth certificate that points you to make a blockchain wallet without you knowing,” he says, “giving you your first NFT and digital collectible at zero cost to you.”
“We cover the gas and — all of a sudden — you’re having fun, you’re digitally collecting, but you don’t even know it’s an NFT.”
Enterprise adoption and licensing revenues
Walmart, a normal shop, now sells Pudgy Penguins to normal people.
And Amazon:
https://nftnow.com/news/pudgy-penguins-releases-toy-line-earns-500000-in-48-hours/
And there is a licensing play here too…
since all of the toys are connected to existing pieces of NFT IP, the current NFT holders will receive licensing royalties for each corresponding toy that is sold at Walmart, Pudgy Penguins said.
Additionally, Pudgy toys sold at Walmart will offer consumers the chance to find a golden ticket, which provides access to a rare trait for their Forever Pudgy Penguin in Pudgy World.
From the Pudgy Penguins licensing page:
At Pudgy Penguins, we have the goal of licensing Pudgy Penguins and Lil Pudgys for a majority of our initiatives. Licensing is a big part of the Web3 ethos as it gives back the holder in many ways and we plan to build in this vertical heavily. As we begin building in this vertical, we want to license Penguins from the community and feature them in our content, toys, collectibles, and more!
If you believe your Penguin is ready to be a star and be used in our activations, then read the terms below and submit your pudgy penguin for consideration. WE WILL BE PICKING PUDGY PENGUINS AND LIL PUDGYS BASED ON THE context of each initiative. REMEMBER THAT YOU ARE NOT COMMITTING TO PARTICIPATING BY EXPRESSING YOUR INTEREST. THANK YOU!
More on their licensing platform.
Narrative
Summary
Coretime + New IP + Licensing revenues = a path to both appealing to ‘the culture’ and to ‘enterprises’ via sustainable and scaleable network demand/revenue models.
Let’s make Polkadot fun again.