About Fabricated
The Mission
Fabricated is looking to lower barriers in the textile industry by making it easier for web2 and web3 participants to have direct access to end-to-end manufacturing and ecommerce services. They intend to do this by taking advantage of their multiple, already-functioning manufacturing facilities, allowing users to connect directly to the manufacturer and bypass many middlemen in the process.
In addition to removing middlemen, Fabricated plans to build some client services to further lower the barrier to entry for clients that struggle to put the time and effort into merch design, listings, shipping and other logistic difficulties. The extent of these services is unknown and ongoing, but are open avenues of expansion for Fabricated. Their primary goal is to create a bridge between an established web2 business and the web3 environment all while offering supporters a share of revenue generated through their services.
Offerings
Fabricated is aiming to build a suite of services and products to assist clients in easier manufacturing, purchasing, and logistics. The exact developments and estimations are unknown, but the following provides a list of potential concepts:
- Direct B2B (business-to-business) textile manufacturing – Removing middlemen/costs
- Webstore – Access for creators (influencers, projects, etc) to list and sell merchandise with on-demand manufacturing and fulfillment.
- End-to-end inclusive services – Design, manufacture, inventory management, listing/advertising, shipping, etc.
- Consulting services- Design, marketing, and logistics services
The Collection
The total supply is 450 NFTs, much lower than most rev share projects. The lower count NFT serves a couple major purposes including:
- Increases chance of sell-out due to needing fewer buyers
- Holders are more vested by having a larger stake
- Less dilution in the revenue share payouts
The art itself is pretty unique, as they aren’t taking the approach of trying to be the best PFP project out there. But they also didn’t just want to take the easy way out and offer an NFT-pass, so they seem to have put a lot of time and effort into the art chosen. It’s a creative take on a 2D character with a variety of traits. With a supply of only 450, each one will likely be rather different from one another but also be very identifiable to the Fabricated brand.
Funding
The total raised from the mint of the project is ~$55k. While the manufacturing factories and infrastructure exists pre-mint, the funds will be used to prepare for the web2/web3 expansion of the project. A more detailed breakdown of the funding distribution is below:
- 15% for extended team (includes core, collabs, mods, etc.)
- 15% marketing campaigns
- 30% stored in treasury
- 40% physical goods and production labor
Holder Benefits
Fabricated has two very clear holder benefits:
- Revenue share
- Enhanced referral bonus
Revenue Share
While the phrase “revenue share” is common in this space, Fabricated is actually working off of profit-sharing. Their model below is the breakdown of their profits:
- 50% holders
- 30% stored in treasury
- 10% distributed to the team
- 10% used for general ongoing costs (marketing, etc)
Referral
Fabricated also offers a referral program, with an additional incentive for any holders. The offers for each are detailed below:
Holders receive 10% on the initial deal, with 4% earned on all following orders
Non-holders receive 5% on the initial deal, with 2% earned on all following orders
Fabricated has potential to be an excellent passive income project on Solana. It possesses many of the main attributes that these projects require to be successful and it all comes down to how the execution of the project is carried out over time. There are a few main characteristics of the project that I think are worth noting.
Foundation and Fund-Raise
Many profit-sharing projects use their funds gained from mint in order to build the business. But Fabricated is a bit different here as the mint funds are being used to expand an already-existing business.
While I can’t personally verify the existing businesses, I take this as a positive outlook because it shows that the team behind the project has some real-world experience in this venture and aren’t using this project as a fresh learning opportunity. Additionally, it shows that the business is already sustaining which slightly lowers risk of participating.
Price Longevity
As with all rev share projects, the floor price will ultimately get pegged to some average rev-share payout amount. With the floor price being aligned with the payouts, if you aren’t an early investor into these projects then you miss the potential profits from floor price increasing. However, there is a scenario in which the floor price increases after finding stability and that would be if the business expands and continues to gain more sales, which would increase the profit-share. But an equal risk is posed if the business goes through a dry spell and is struggling with closing new deals and contracts. So late investors in projects like this are banking on 2 primary things; 1) That the business continues to stay afloat and continues to pay profit share and 2) The profit of the company remains stable or increases over time. If those two aspects hold true, then it’s simply a matter of time until the investment provides 100% ROI and is a free ride.
Supply/Marketing/Art
The collection is relatively small at only 450 NFTs. While that isn’t the smallest for a rev share project, it is quite a bit smaller than a typical 10k collection. I think this comes with a couple of pros and cons.
As an investor, I prefer smaller collections for rev share projects because you typically don’t have to be a whale holder to get reasonable payouts (of course this depends on the rev share payout amounts). So these collections tend to be better for a few, more serious investors rather than projects that hold very low floor price and payouts.
The downside to that same idea is that Fabricated is hoping that their holder’s will do some kind of marketing for them. That could be as much as trying to get referral contracts, representing with the PFP, talking about their projects and merch they’ve gotten from the project, etc. With a smaller collection there are simply smaller people to spread that awareness. And if the holders are more serious investors, it’s likely they are busy with other endeavors and won’t take the time to promote a rev share project and would prefer to simply be a passive holder and collect the payouts.
With one last saving grace to this concept, I think the art may be identifiable and exclusive enough that some holders choose to use it as a PFP. And it may only require a couple of large personalities to decide to use the PFP to sustain awareness. Of course, this is a speculative scenario but I think the choice of art could work out well for Fabricated.