BUSINESS IDEA: THE WEDDING NFT - THE WEDDING GIFT THAT KEEPS ON GIVING - to the couple, to the guests, and even to investors.

I was talking to Jen Glantz, "Bridesmaid for Hire" (see link to Amazon below for her book) and creator of "The Newlywed Game", see second link below.

We came up with an idea for "The Wedding NFT" - an NFT people can buy as wedding gifts for a couple.

The various features are described below but the WEDDING NFT is designed to solve several problems. It is an evolution of the traditional wedding gift.

The NFT solves these problems:

A) many couples want cash. This is a nicer way to give cash than simply sending to a "money fund"
B) The NFT (see features below) provides a nice incentive for the couple to stay married and provides a second gift (even adjusted for inflation) at the ten year point.
C) If you go to a lot of weddings, and you feel ripped off a little if you spend a lot on a wedding gift(s) and then the couple(s) get divorced, this is a better alternative for you.
D) this type of NFT (call it, "the wedding NFT") can be a new investable asset class (for reasons I explain in the idea list below).

---

Jen's book: https://amzn.to/3HYXT8s

Jen's card game: https://amzn.to/3vTSQUw

Preview

1. FEATURE #1 of a "Wedding NFT" - Gives the gift of money in a nicer format than traditional

Many couples want money for their weddings instead of a toaster, etc. This is a nicer way to do it than simply sending money into a "money fund".

You buy an NFT for $100 and that's like giving $100 gift to the couple but the NFT maybe also unlocks photos or some other small digital gift from the couple to the initial buyer of the NFT.

2. Feature #2: What if the couple gets divorced? Something that has NEVER been thought about before in the wedding gift business:

$60 stays in the blockchain and $40 goes to the couple immediately. The numbers (100 / 60 / 40) are just being used as an example and the couple can specify when they make their collection of NFTs.

IF THE COUPLE GETS divorced within the first ten years of marriage, everyone who is a holder of the NFT gets $50 back (half their gift). Nobody in history has ever done this.

3. Feature #3: But what if the couple stays married?

On their tenth year anniversary, the couple gets the other $60 remaining in the wallet that the NFTs were sold from.

If they issued 1000 NFTs, they get $60,000 on their tenth year anniversary.

It can be either adjusted for inflation (by converting it into dollars on their wedding day and putting the money in an inflation-linked bond) or it can be adjusted for the growth in Ether (fhey kept the $60 in Ether).
So the couple can potentially make much more than $50 per NFT on their tenth year anniversary.

4. Feature #4: Why would the couple notify holders of the NFT that they are divorced?

If they are divorced and can prove it, they notify the wallet of the NFTs that they are divorced and when they do so, they get $10 * the amount of NFTs released to them while all the holders of the NFT get the $50 (half of their initial gift back). If they issued 1000 NFTs that were bought by their wedding guests at the time of their wedding then they would get $10,000 on the day of their divorce.

Again, nobody in history has ever gotten anything back if the couple they gave a wedding gift to gets divorced.

5. Something "feels" bad about this. Why would couples offer a Wedding NFT? Why not get all the money up front like traditional? Why risk offering "insurance" on their marriage. ANSWER: they will make more money.

A) it's like a savings account in the scenario where they are married for ten years.
B) But don't they want all the money right away?

Sure they do. BUT...structured this way, their friends and family are MUCH MORE LIKELY TO GIVE THEM A WEDDING NFT as a wedding gift. Particularly people who go to a lot of weddings and have to shell out a lot of money for gifts would want this kind of "insurance".

So, hypothetically, instead of 100 wedding guests giving you toasters and 20 giving you cash , 100 would buy wedding NFTs and 20 would get you toasters.

So, the couple would make more money on day one, make a lot more money on their ten year anniversary (particularly if ETH is up or inflation is up OR (see below) if there are resales) and even make some money if, god forbid, they get divorced.

So the guests have incentive to buy the Wedding NFTs as a gift and the couple has an incentive to issue Wedding NFTs to encourage guests to give cash as a gift. The couple also has an incentive to let people know if they get divorced. BUT it's not a big enough incentive to get divorced because there is more incentive to work out any difficulties and stay married.

6. RESALE VALUE FOR INVESTORS

Believe it or not, these wedding NFTs all have resale value.

If there is $50 left in the NSFT after the wedding and that $50 is released upon a divorce within the first ten years of marriage then the value of the NFT is:

(the percentage chance the couple gets divorced in the first ten years) * ( $50 * the % growth in ETH or the % growth in inflation). * a discount to take into account risk.

So if a couple is in year two and they match the demographic of couples who have a 20% chance of getting divorced before the first ten years are up then the value of the NFT is:

20% * 50 * (land et's say a 50% discount which is a function of the uncertainty of the odds plus the opportunity cost missed if you have to hold the NFT for 8 more years, etc). Let's say that "investor's discount" is 50%.

So the value of the NFT for the couple described in the paragraph above would be about $10 minus the discount an investor would get. This doesn't count the growth in ETH if the wallet is being held in ETH. This could lead to it being significantly more than $10.

7. WHY WOULD INVESTORS BE INTERESTED IN THIS (aka, a short lesson about investing in ANYTHING)

Above we modeled out the price of a Wedding NFT two years after marriage. It's based on the amount in the wallet and the odds the couple will get divorced.

BUT...the NFTs might be for sale for much less than we've modeled.

Let's say I could buy 20,000 $100 Wedding NFTs for 100s of different couples in the resale market (e.g. I have no idea who the couples are, I'm just an investor).

Why would I invest?

If all of the couples that issued those 20,000 NFTs get divorced, my payout is 20,000 * $50 or $1,000,000.

Now, I know not all the couples are going to get divorced. But I also know greater than zero percent WILL get divorced. So the NFT is definitely worth greater than $0 (see the above idea)

What if I could pay $1 per NFT? I'd spend $20,000 for a payout up to a million.

If I know 50% of couples get divorced then it's reasonable to invest $20,000 for an average payout of $500,000. That's 25x return. Warren Buffett would be jealous. Maybe i'd even invest up to $300,000. It depends what I felt my risks were and what types of returns I wanted. Investing $300,000 for a $500,000 likely payout is a 66% return (+ inflation or + growth in ETH).

So $1 would be too cheap. Perhaps $25 would be too expensive. Depending on the demographics of the couples (age, education, income, health) I would probably think the NFTs were dirt cheap at $15 or less and too expensive at $20 or more.

So there is incentive for NFTs to be sold and resold and the couple (and perhaps the initial gift givers) get royalties on every resale, providing more income for the couple.

The Wedding NFT becomes the gift that keeps on giving.

8. WHY WOULD INITIAL BUYERS OF THE NFT SELL?

- if they thought the couple was happily married forever then they would sell
- if they thought the value of the ETH in the wallet had gone up too much they would sell. Since part of the value of the wallet would incorporate the price of ETH
- if they needed money before the ten year mark.
- technically, the initial buyers can make a lot more money than they gave if the value of the NFT goes much higher because of the value of ETH going higher. SO EVEN GIVING THIS AS A GIFT HAS INVESTMENT VALUE.

9. SUMMARY: THE WEDDING NFT

The Wedding NFT
a) gets the couple cash on wedding day
b) gets the couple more cash on their tenth year anniversary
c) gets the couple cash (but much less cash than "b" above) if they get divorced
d) doesn't' cost the NFT buyer more money than they would've spent anyway)
e) "gives" the NFT buyer a form of insurance if the couple gets divorced
f) gives the couple incentive to stay married for ten years (albeit it's not a huge incentive but it is one)g) potentially gives the couple future income if their Wedding NFTs are resold.
g) creates a new investment category for investors. Any DeFi exchange that allows for exchange of Wedding NFTs can make a lot of money on transaction fees. And investors can make decent returns (through diversification and understanding the underlying statistics). Can even be the basis of hedge funds that know how to trade these.

10. WELL, WHAT IS THE BUSINESS? THREE TYPES OF BUSINESSES:

- Be the minter of Wedding NFTs. A WNFT-aa-S - "Wedding NFTs as a service" to make it easy for couples to set this up and for friends and family to use this to give money as a gift. You'd have to set up all the mechanisms for how money gets dispersed (not difficult but still would need coding, customer service, sales, etc)

- Be the exchange. Create a DeFi exchange focusing on the buying and selling of NFTs

- Be an investor.

11. IS THIS A CYNICAL VIEW OF MARRIAGE?

It's a realistic view based on all the statistics of divorce and how much people like to spend on wedding gifts.

Divorces happen.

When Judy Blume was on my podcast I asked her if she thought I was "damaged goods" because I was divorced.

She described her story and then said she was on her third marriage and was extremely happy.

She said, "I defined your youth, right?" And I said of course! I read all her young adult books when I was little and then her more "adult" books ALSO when I was little.

"Well," she said. "Third time's a charm."