Before changing equity (e.g., fundraising, paying out), update Vault Valuations to reflect squad assets. Don't skip this step, learn how to value your Vault here!
Vault Valuation = Token value + NFT Valuation
How Vault Valuations Are Calculated
Vault Valuations are the sum of Ethereum and ERC20 token values, plus the manual NFT Valuation. These values are measured in ETH. While tokens have market values, NFTs need manual valuation by the squad. Before any "equity changing" action like funding or payout, NFT valuations must be updated. Keep it up to date!
Valuing A Vault's NFTs
NFT Valuation Proposal
How To Value NFTs
We recommend that you personally value each of your NFTs, especially if they're rare and valuable because you know them best! While we suggest market prices based on various factors, your NFT Valuation will always be the total value of all your NFTs.
You can even update their valuation anytime through a proposal. So get involved and make sure your NFTs are accurately priced!
Why NFT Valuations Are Important
It's essential to value the NFTs in your portfolio correctly for several reasons:
To track your NFT portfolio over time.
To know the pre-funding valuation of your Vault when raising new funds through a Funding Round.
To determine how much ETH or other tokens you'll receive in an Exit/Payout based on your equity %.
Why NFT Valuations Are Difficult
Valuing stocks and popular digital tokens is easy because they're traded often. But valuing unique things like a Picasso painting or NFTs is trickier. There are fewer sales to go off of, and unique qualities can make it hard to put a price on them.
NFTs can be especially tough because they sell less often and might have rare features. That makes it hard to figure out how much they're worth.