TSB DAO NFTs Management Q2 Report

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Arthemort
@ArthemortNov 6, 2025

The Spaces reviewed TSB DAO’s NFT Collection Management Report (Aug 1–Oct 2025), led by Brian with Josephine and Kim. The team hit financial targets despite a shaky market by aggressively offloading low-value NFTs, executing several outlier sales (e.g., a rare piece at ~5.7 ETH and a mid-rare Bored Ape near 13 ETH when floor hovered ~9 ETH), and compressing the collection from ~1,400 to ~900 pieces while enriching a Blue-Chip Vault. They migrated transparency to SEV (Sandbox Execution Verifier), enabling real-time tracking of listings, buys, and treasury transfers. Operationally, a treasurer transition briefly slowed listings; recruitment is near completion. The team discussed airdrop/farming outcomes (OpenSea Voyage XP top bracket, low ROI on chest farming), persistent illiquidity pockets, and heightened exposure to Yuga assets after floor drawdowns. Looking ahead, they proposed a community Art Commission Grant (Dec voting, $8–12k per commission) to involve token holders in acquisitions, and outlined plans to diversify blue-chip exposure, potentially rotate into a CryptoPunk, and deploy ~$150k idle treasury into conservative yield/lending while maintaining active communications and private deal options.

TSB DAO NFT Collection Management Twitter Space — Quarterly Report (Aug–Oct 2025)

Who spoke

  • Brian: Collection Management Team lead (primary presenter; sales/performance, operations, risk, strategy)
  • Josephine: Curator (opening overview; art commission grant; SEV transparency; closing)
  • Kim: Curator (vault strategy; SEV platform; closing)
  • Lanza: DAO community member (feedback, questions; will post an AI transcript summary)
  • Community members (names not captured in transcript): remarks and a question about Sand Chain

Mission and reporting period

  • Reporting period: August 1 to October 31, 2025 (second report cycle for NFT collection management)
  • Mandate: Strategic liquidation, reinvestment, and transformation of the DAO’s holdings into a curated, diversified, and revenue-generating art collection
  • Target collection size: ~300 NFTs by the end of the mandate (from >1,000 at the start)

Financial and portfolio highlights

  • Portfolio reduction: Decreased from ~1,400 NFTs to ~900 in ~6 months
  • Revenue cadence:
    • Weekly sales generated roughly $10,000–$12,000 from ~50 listings/week (prior to a temporary operations slowdown)
    • This quarter’s realized revenue: 31.8 ETH; at time-of-sale prices, approx. $133k in USD
    • Six-month cumulative “dollar-at-sale” value cited at approximately $320k+ (stated as “about 300,000,21,000” in-session)
  • ETH timing alpha: Positive unrealized gain ratio of ~15–20% by selling NFTs when ETH was lower and converting to meet DAO’s USDC supplement needs when ETH was higher
  • Ongoing quarterly requirement: Convert part of proceeds into USDC (~$100k target per quarter) to support DAO budget

Sales highlights and pricing context

  • “Outlier” sales: Successfully sold select assets well above trait or collection floor
    • Moonbirds (rare piece kept in vault; collection saw floor move from ~0.4 ETH to ~2.3 ETH). Another rare Moonbirds NFT sold at ~5.7 ETH (above typical market value for that trait tier)
    • Bored Ape Yacht Club: Sold a mid-rare Ape ~13 ETH while the floor was oscillating near ~9 ETH at that time. Team remains conservative on selling Apes, given heavy exposure and community sentiment
    • “Key” assets (name unclear in transcript; linked to Bitcoin-bridging synergies): several sales achieved around ~0.7 ETH vs prior ~0.4 ETH floors
  • Strategy emphasizes offloading low-value/low-liquidity items first while opportunistically capturing value from higher-bracket assets when market conditions allow

Operations: listings, liquidity, and revenue cadence

  • Liquidity management:
    • Many illiquid items require multiple re-listings; ~55 assets needed ≥3 listing cycles to sell
    • Roughly 40% of weekly listings sell within the same week; the remainder typically sell across subsequent weeks
  • Temporary slowdown:
    • Weeks 18–20 saw a drop in listing velocity due to an internal treasury transition (see “Operational challenges”)
    • A one-time spike (Week 19) doubled typical selections to front-load work ahead of slowdown
  • Acquisition wallet:
    • Small balance used to execute time-sensitive activities and farming (OpenSea quests/XP, swaps) with more autonomy, without waiting for main wallet custody actions

Vault strategy and transparency tooling

  • Vault (“blue-chip wallet”) focus:
    • Consolidates high-value assets; now represents most of the collection’s value vs the main wallet (which is primarily used to offload lower-value items)
    • New additions include major artists and collections (as referenced): Refik Anadol, Damien Hirst, Yuga Labs assets, World of Women, among others
  • SEV — Sandbox Execution Verifier:
    • Transparency platform where DAO members can track sale orders, buy orders, and liquidation decisions in real time
    • Captures actions beyond OpenSea (e.g., transfers, treasury moves to meet USDC targets)
    • Link shared in the Twitter Space comments and will be posted on the forum

Acquisition wallet, airdrops, OpenSea rewards

  • Airdrops and rewards claimed/monitored:
    • Ongoing claims: Meme (Animoca Brands’ Meme project), KONG (CyberKongz; transition from BANANA to KONG), Monad airdrop (in process; value TBD)
  • OpenSea XP & chest waves:
    • Wave 0 (XP-focused): Reached ~8,250 XP, placing the wallet in the top-13 XP bracket
    • Wave 1 (chest farming): Opted not to pursue aggressively due to “small-wheel output” dynamics and heavy competition; net outcome mostly offset fees
    • Wave 2: Lower observed volume across OpenSea trades/swaps; team may engage more as reduced competition improves expected value
  • Index-like exposure:
    • Experimented with allocating ~1% (or less) of treasury to diversified NFT exposure projects/tokens to gain indirect exposure (e.g., CryptoPunks) and broaden risk distribution

Risk, market context, and exposure management

  • Market backdrop:
    • Recent crypto wide liquidations; last seven days (relative to the Space) were materially rough
    • Floors broadly down across NFTs; volatility impacted revenue pacing
  • Yuga Labs exposure:
    • BAYC and related assets represent >50% of portfolio value post-low-value offloads
    • Example: 28 BAYC held; floor dropped from ~13.5 ETH to ~6 ETH; team currently avoids selling under ~10 ETH
    • Total portfolio valuation peaked near ~$2M this quarter, then fell to roughly half (≈ -60%), largely due to Yuga floors rolling over
  • Diversification debate:
    • Active discussion on swapping some Apes into CryptoPunks for category diversification and to anchor the collection to a “cornerstone” asset of the NFT market
    • Consider diversifying into other blue-chip artists and collections (e.g., XCopy, Refik Anadol, Beeple-like tier, Mapan, DK — animation/game-culture aligned)
    • Explore loaning/lending strategies on reputable platforms, and private swaps where feasible

Community art commission grant (new initiative)

  • Purpose: Involve DAO members directly in art acquisition decisions by commissioning original work tailored to The Sandbox DAO’s identity
  • What a commission means: The DAO requests an artist to create a new, specific piece (vs buying an existing work)
  • Process & timeline:
    • Early December: Curator team (Brian, Josephine, Kim) preselects ~5 artists aligned with The Sandbox aesthetics and ethos
    • For each candidate: Provide a portfolio/deck including intent statement, sketches/drafts/previsualization, and relevant background
    • Dec 10–Dec 31: DAO vote to choose the commission recipient
    • Minting & custody: Final piece minted as NFT and transferred to the official DAO wallet
  • Budget: $8k–$12k (≈ 2–3 ETH), targeting emerging/up-and-coming artists (1–3 ETH typical pricing)
  • Open participation: Community can suggest artists via the forum post; submissions must meet requirements and timeline to be considered

Operational challenges

  • Treasury transition:
    • The DAO treasurer (based in Argentina) left to pursue a new venture (not a direct result of Sandbox company downsizing)
    • Weeks 15–20: Knowledge transfer and role vacancy slowed listing/transaction throughput
    • Recruitment for the replacement is underway/near completion; normal cadence expected to resume once onboarding is complete
  • Legal/KYC constraints:
    • Private sales and certain strategic deals are slowed by KYC requirements; some counterparties avoid KYC, limiting deal flow

Next-quarter priorities

  • Community engagement:
    • Execute the art commission grant process and maximize participation via Forum/Snapshot
    • Continue AMAs/Twitter Spaces/Discord sessions; post SEV link and operational updates regularly
  • Diversification & risk management:
    • Reassess concentration in Yuga assets; evaluate swaps (e.g., Apes → Punks) and balanced blue-chip additions
  • Yield on idle funds:
    • Deploy ~$150k worth of ETH (current market value) into low-risk yield strategies (e.g., lending/loans) instead of letting it sit idle
  • Portfolio optimization:
    • Persist with aggressive liquidation of low-turnover and low-creator-consistency segments
    • Explore flipping/market-making initiatives where feasible (short-term trades were difficult this quarter due to muted NFT price oscillations)
  • Target tracking:
    • Maintain sales cadence and listings to progress toward ~300 NFTs collection size by end of mandate

Q&A and community feedback

  • Lanza’s feedback: Praised clarity of the report (especially the challenges section), found it educational for curation and art trading
  • SEV link: Will be posted on the forum; in-Space comments tagged Lanza for visibility
  • Sand Chain question (community):
    • Current status: No active plan yet; Sand Chain is new and not fully open beyond signing the manifesto
    • Action: Team to explore potential synergies and report back if useful integrations emerge
  • Private sales: Team is open to DAO-member private deals (KYC and trust required); contact via DMs/Forum

Key takeaways

  • Strong execution despite market drawdowns and an internal treasury role transition: revenue targets met, vault strengthened, and listing discipline maintained
  • Transparency upgraded via SEV, giving members real-time visibility into actions beyond OpenSea
  • Community-first innovation: Art commission grant invites DAO-wide participation in shaping the collection’s cultural footprint
  • Clear-eyed risk stance: Yuga exposure flagged; diversification paths under active consideration
  • Practical next steps: Resume normal operations post-treasurer onboarding, deploy idle ETH to yield, continue offloading low-value assets, and prepare December grant voting

Closing

  • Next report expected in ~3 months
  • Reminder: If you hold SAND or Sand land, you are part of the DAO and can vote on proposals, including the upcoming commission grant
  • Recording will be available; Lanza will also post an AI transcript summary on the Forum