Written by: Lawrence, Mars Finance.
I. Brief History of Doodles: From 'Cartoon Avatars' to 'Web3 Disney' ambitions.
As one of the most iconic blue-chip NFT projects in the Ethereum ecosystem, Doodles' growth story serves as a textbook case for IP incubation in the Web3 era.
1. Starting Point of Artistic Genes and Community Co-creation (2021-2022)
In October 2021, 10,000 brightly colored cartoon avatars created by Canadian illustrator Scott Martin (Burnt Toast) landed on Ethereum. These NFTs, named Doodles, quickly broke the mold with their unique 'childlike drawing' style, with floor prices soaring above 5 ETH, joining 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 figure, responsible for all character design and world-building.
Evan & Jordan: Former core members of CryptoKitties, well-versed in NFT community operation rules.
Unlike other PFP (Profile Picture) projects, Doodles has emphasized the concept of 'holders as shareholders' from the beginning:
Establish Doodlebank community treasury, with holders voting to determine the use of funds.
Distribute wearable devices through mechanisms like Genesis Box to achieve dynamic NFT upgrades.
2. Cross-Industry Expansion and Capital Support (2022-2024)
2022 became the strategic turning point for Doodles:
Executive recruitment: Former Billboard president Julian Holguin appointed CEO, music superstar Pharrell Williams as Chief Brand Officer.
Capital Moves: Completed $54 million financing at a $704 million valuation, with 776 Fund (under Reddit co-founder Alexis Ohanian) leading the round.
Ecological Layout:
Acquired Emmy-nominated animation studio Golden Wolf.
Launched co-branded products with Adidas and McDonald's.
Developed the Doodles 2 dynamic NFT system, supporting cross-platform character customization.
Thus, Doodles has evolved from a pure NFT project into a 'Web3 Entertainment Group,' with its business scope covering animation, music, games, offline events, and other diverse scenarios.
3. Transformation in Crisis (2025)
In January 2025, founder Scott Martin resumed the CEO position, announcing a return to the 'radical innovation' route:
Halting excessive commercial co-branding (e.g., McDonald's coffee collaboration).
Launching the DreamNet ecosystem to build an AI-driven decentralized content platform.
This adjustment is underpinned by the ongoing reality of a sluggish NFT market: In 2024, Doodles' trading volume declined by 67% year-on-year, with floor prices lingering in the 3 ETH range.
II. Tokenization Breakthrough: DOOD's Economic Model and Strategic Logic
In the context of overall cooling in the NFT sector, Doodles chooses to break through with tokenization. On May 9, 2025, its native token DOOD will launch on Solana and plans to cross-chain to Base L2.
(I) Token Economics: Interest Reconstruction Under Community Narrative.
According to the white paper, the total supply of DOOD is 10 billion tokens, with the allocation framework as follows:
Design Highlights:
Community First: 68% of tokens flow into the community, higher than similar projects (e.g., Azuki's 37.5%).
Multi-chain compatibility: Launched on Solana to leverage its high TPS (65,000+/second) and meme culture, with subsequent cross-chain Base integration into the Ethereum ecosystem.
Potential Controversies:
The definition of 'New Blood' is vague: 13% of New Blood allocation lacks transparent rules, posing internal manipulation risks.
Institutional exit pressure: Early investors like 776 Fund have not disclosed exit plans and may cash out through ecological funds.
(II) Value Capture: From JPG to the Imagination of 'Digital Skin.'
DOOD is positioned as the 'economic lifeblood' of the Doodles ecosystem, with its value capture mechanism structured around three layers:
1. Governance Rights.
Proposal Voting: Holders can participate in decision-making regarding DreamNet content creation direction.
Staking rewards: Lock tokens to obtain animation IP dividends, co-branded product discounts, and other benefits.
2. Consumption Scenarios
DoodlesTV: Pay DOOD to watch exclusive animated shorts.
Virtual Fashion: Purchase wearable devices on the Stoodio platform.
In-game purchases: Future item trading in metaverse games.
3. Speculative Targets
Solana's MEME culture boosts trading heat.
The cross-chain bridge with Base may trigger arbitrage opportunities.
However, compared to competitors, the practicality of DOOD remains weak:
Comparing PENGU: Pudgy Penguins have generated stable cash flow through physical toys.
Comparing ANIME: Azuki binds with an anime crowdfunding platform, possessing clear consumption scenarios.
III. Deconstructing the Motivation for Token Issuance: Lifeline or Harvesting Scythe?
In the context of NFT trading volume halving and blue-chip projects struggling to grow, Doodles' decision to issue tokens has sparked polarized evaluations.
(I) Strategic Rationality
1. Breaking the Liquidity Dilemma
The non-standard attributes of NFTs lead to a lack of liquidity. By binding tokens, holders can obtain liquidity assets through staking, airdrops, etc., avoiding the pressure of selling NFTs at depressed prices.
2. Community Activation Experiments
The operation of the DreamNet system relies on token incentives:
Creators can upload content to earn DOOD rewards.
Users can earn points by participating in interactions (likes, shares).
This 'creation as mining' model attempts to replicate the success path of StepN.
3. Capital Exit Demand
Early investment institutions need to realize exit through token listings. Based on a $54 million financing estimate, DOOD FDV (Fully Diluted Valuation) needs to reach $700 million to prevent VC losses, while the current NFT market value of Doodles is only $6.48 million.
(II) Suspicions of Harvesting.
1. Token Distribution Risks
Although the community allocation ratio is as high as 68%, the detailed rules are questionable:
30% of community airdrop lacks a clear snapshot time, posing 'mouse warehouse' risks.
The ecological fund is controlled by the team and may be used to manipulate market prices.
2. The MEME Trap
Choosing Solana for the launch essentially caters to the MEME hype culture. Reference the average lifecycle of tokens on that chain:
80% of projects lose 90% of their market value within one month of listing.
Trading volume is concentrated on CEX, with poor on-chain liquidity.
3. Reflexivity Risks of NFTs
A drop in token prices may trigger a wave of NFT sell-offs, forming a 'death spiral.' After Azuki launched its token in 2024, the floor price of its NFTs fell by 58%.
IV. Listing Outlook: Short Selling Signals and Risk Warnings
According to calculations by Marsbit Research Institute, DOOD may exhibit the following trends:
(I) Short-Term Speculative Window
Listing Day: Driven by MEME sentiment, FDV may peak at $1.5-2 billion.
Airdrop Selling Pressure: Based on a 30% community allocation, potential selling volume in the first week could reach 3 billion tokens (approximately $450 million).
(II) Medium to Long-Term Risks
Ecological realization pressure: If DreamNet MVP product is not launched within 6 months, the token will lose narrative support.
Multi-chain operational costs: The cross-chain bridge between Solana and Base may become a target for hacker attacks.
(3) Short Selling Strategy Recommendations
Suitable for short selling signals:
FDV exceeds $2.5 billion (corresponding to DOOD unit price of $0.25).
Significant transfers appear in team addresses.
DreamNet release postponed.
Risk Warning:
Solana's on-chain manipulators hold a high degree of control; beware of short squeeze risks.
Exchanges like Binance may implement short-selling restrictions.
V. Conclusion: The Paradigm Revolution and Speculative Bubble of Web3 IP.
Doodles' tokenization experiment is essentially an adventure about 'digital asset securitization.' Its idealistic side is reflected in:
Attempting to achieve value sharing between creators and consumers through token economics.
Exploring the transformation of NFTs from collectibles to 'digital identity passports.'
But the harsh reality is equally clear:
In the interest chain composed of VCs, exchanges, and market makers, the community remains in a weak position.
The maturity of the Web3 entertainment ecosystem is far from supporting a valuation in the tens of billions.
For ordinary investors, the recommendation is:
Short-term participation: Take advantage of liquidity premiums during the early trading period after listing, with a stop-loss set at -20%.
Long-term avoidance: Unless DreamNet achieves a user retention rate of over 50% after launch, it is unwise to hold positions for more than 3 months.
Ecological Observation: Focus on the music collaboration with Pharrell Williams and the animation output progress from Golden Wolf.
In the crypto world, 'innovation' and 'harvesting' are often two sides of the same coin. Whether Doodles can break the curse of 'launching a token means peak' will be critically tested in the autumn and winter of 2025.