Doodles: From NFT blue chips to tokenization experiments, a gamble in the Web3 entertainment empire

A Brief History of Doodles: From 'Cartoon Avatars' to the Ambition of 'Web3 Disney'

As one of the most iconic blue-chip NFT projects in the Ethereum ecosystem, Doodles' growth story can be seen as a textbook case of IP incubation in the Web3 era.

1. The starting point of artistic genes and community co-creation (2021-2022)

In October 2021, 10,000 colorful cartoon avatars created by Canadian illustrator Scott Martin (Burnt Toast) landed on Ethereum. These NFTs, named Doodles, quickly broke through with their unique 'childlike doodle' style, with floor prices soaring to over 5 ETH, entering the 'blue chip club'.

The three founders of the core team - Scott Martin, Evan Keast, and Jordan Castro - each play key roles:

• Scott Martin​​: Visual soul character, responsible for all character design and world building
• Evan & Jordan: former core members of CryptoKitties, well-versed in the rules of NFT community operation

Unlike other PFP (Profile Picture) projects, Doodles has always emphasized the concept of "holders as shareholders" from the beginning:

• Establish the Doodlebank community treasury, with owners voting on the use of funds
• Distribute wearable devices through mechanisms such as Genesis Box to achieve dynamic NFT upgrades

2. Cross-border expansion and capital support (2022-2024)

2022 became a strategic turning point for Doodles:

• Executive Introduction: Former Billboard president Julian Holguin appointed as CEO, music superstar Pharrell Williams appointed as Chief Brand Officer
• Capital move: completed a $54 million financing at a valuation of $704 million, led by 776 Fund (co-founded by Reddit's Alexis Ohanian)
• Ecological Layout:
• Acquisition of Emmy-nominated animation studio Golden Wolf
• Collaborate with Adidas and McDonald's to launch co-branded products
• Develop Doodles 2 dynamic NFT system, supporting cross-platform character customization

By now, Doodles has evolved from a simple NFT project to a 'Web3 entertainment group,' with a business landscape covering diverse scenarios such as animation, music, games, offline events, and more.

3. Transformation in Crisis (2025)

In January 2025, founder Scott Martin reassumed the position of CEO and announced a return to the 'radical innovation' route:

• Call to stop excessive commercialized collaborations (such as McDonald's coffee partnership)
• Launching the DreamNet ecosystem to build an AI-driven decentralized content platform
• Behind this adjustment is the continued downturn in the NFT market: in 2024, the trading volume of Doodles decreased by 67% year-on-year, with the floor price hovering in the 3 ETH range for a long time.

Tokenization breakthrough: DOOD's economic model and strategic logic

In the context of the overall cooling of the NFT track, Doodles chooses to break through with tokenization. On May 9, 2025, its native token DOOD will debut on Solana and plan to cross-chain to Base L2.

(1) Token Economics: Interest Reconstruction in Community Narratives

According to the white paper, the total supply of DOOD is 10 billion coins, distributed as follows:

Design Highlights:

• Community First: 68% of tokens flow to the community, higher than similar projects (such as Azuki's 37.5%)
• Multi-chain compatibility: Solana, with its high TPS (65000+ per second) and meme culture foundation, is the first to launch, followed by cross-chain integration with the Ethereum ecosystem by Base.

Potential controversy:

-The definition of "New Blood" is vague: 13% of New Blood allocations lack transparent rules, posing risks of internal manipulation.

• Institutional Exit Pressure: Early investors such as 776 Fund have not disclosed exit plans, or cash out through ecological funds

(2) Value Capture: From JPG to the imagination of 'digital skins'

DOOD is positioned as the "economic blood" of the Doodles ecosystem, and its value capture mechanism revolves around three layers:

1. Governance

• Proposal voting: Holders can participate in the decision-making of DreamNet content creation direction
• Staking yield: Locking tokens to receive dividends from animated IP, joint merchandise discounts, and other benefits

2. Consumption Scenario

• DoodlesTV: Pay DOOD to watch exclusive animated shorts
• Virtual Fashion: Purchase wearable devices on the Stoodio platform
• In-game purchases: item trading in future metaverse games

3. Speculative targets

• Solana chain MEME culture boosts transaction heat
• Cross-chain bridging with Base may trigger arbitrage opportunities

However, compared to competitors, DOOD's utility still appears weak:

• Comparison with PENGU: Pudgy Penguins has generated stable cash flow through physical toys
• Comparison of ANIME: Azuki binds anime crowdfunding platform with clear consumption scenarios

Deconstructing the Motivation for Issuing Coins: Is it a Lifesaving Medicine or a Harvesting Sickle?

Amidst the sharp decline in NFT trading volume and the lackluster growth of blue-chip projects, the decision to issue Doodles coins has sparked mixed reviews.

(1) Strategic Rationality

1. Liquidity Trap Decoded

The non-standard attributes of NFTs lead to a lack of liquidity. By binding tokens, holders can obtain liquidity assets through pledging, airdrops, etc., avoiding the pressure to sell NFTs at a discount.

2. Community Activation Experiment

The operation of the DreamNet system relies on token incentives:

• Creators can earn DOOD rewards by uploading content
• Users earn points by participating in interactions (liking, sharing).
• This 'creation is mining' model attempts to replicate StepN's successful path.

3. Capital exit demand

Early-stage investment institutions need to exit through token listing. Based on a financing of $54 million, DOOD's FDV (fully diluted valuation) needs to reach $700 million to prevent VCs from losing money, while the current NFT market value of Doodles is only $64.8 million.

(2) Suspected of Cutting Leeks

1. Token Distribution Risks

Despite the high community allocation ratio of up to 68%, there are doubts about the detailed rules.

• 30% of the community airdrop does not specify the snapshot time, there is a risk of 'insider trading'
• The ecological fund is controlled by the team and may be used to manipulate market prices

2. MEME Trap

Choosing Solana's initial launch is essentially catering to the MEME hype culture. Refer to the average lifespan of tokens on this chain:

• 80% of the projects lose 90% of their market value within 1 month of listing
• Trading volume is concentrated on CEX, with insufficient on-chain liquidity

3. NFT reflexivity risk

Token price drops may trigger an NFT sell-off, forming a 'death spiral.' After Azuki launched its coin in 2024, the floor price of its NFT dropped by 58%.

4. Listing Prospects: Short Signal and Risk Warning

According to the model calculation of Marsbit Research Institute, DOOD may present the following trend:

(1) Short-term Speculation Window

• First day of listing: Driven by MEME sentiment, FDV may soar to $1.5-2 billion
• Airdrop selling pressure: Calculated based on 30% community distribution, the potential selling volume in the first week reaches 3 billion coins (approximately 450 million US dollars)

(2) Medium to Long-term Risks

• Ecological realization pressure: If DreamNet MVP product is not launched within 6 months, the token will lose its narrative support
• Multi-chain operation and maintenance cost: Solana's cross-chain bridge with Base may become the target of hacker attacks

(3) Short Strategy Recommendations

Suitable for short selling signal:

• FDV exceeds 2.5 billion US dollars (corresponding to DOOD unit price of 0.25 US dollars)
• Team address appears large transfer
• DreamNet delayed release

Risk Warning:

• Solana chain on the house control the degree of high, need to guard against the risk of rolling
• An exchange like Gate.io may introduce short selling restrictions

Conclusion: The paradigm shift and speculative bubble of Web3IP

The tokenization experiment of Doodles is essentially an adventure about 'digital asset securitization'. Its idealistic side is reflected in:

• Attempting to achieve value sharing between creators and consumers through tokenomics
• Exploring the transformation of NFT from collectibles to 'digital identity passports'

But the reality of cruelty is equally clear:

• In the interest chain composed of VC, exchanges, and market makers, the community still remains in a weak position
• The maturity of the Web3 entertainment ecosystem is far from supporting a valuation of hundreds of billions.

For ordinary investors, the recommendation is:

• Short-term participation: Use the early liquidity premium arbitrage of the exchange's initial listing, with a stop loss set at -20%
• Long-term avoidance: It is not advisable to hold for more than 3 months unless the user retention rate exceeds 50% after DreamNet goes live.
• Ecological observation: focus on the progress of music collaboration with Pharrell Williams and animation output with Golden Wolf

In the crypto world, 'innovation' and 'harvest' are often two sides of the same coin. Can Doodles break the spell of 'peak upon coin issuance'? The autumn and winter of 2025 will be a critical test period.

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