The NFT market's pulse is quickening. Sales are surging, buyers have returned, and Bitcoin is even joining the party. Instead, we witness continued Ethereum domination, tremendous growth for Polygon and select collections going completely nuts. Amidst all the stats and figures, one narrative shines brighter than the rest: the Pudgy Penguins are waddling their way back to the top. Their resurgence isn’t just a hot trend — it is a crucial lesson permanently engraved on the blockchain. This beautiful experience serves as a reminder of the power of community and the destructive forces of myopic greed.

Community Can Overcome Bad Leadership

Let's be honest. The original Pudgy Penguins launch was a textbook example of early NFT hype disaster. Promises were issued, gold coins were amassed, and then… fizzout. The original leadership faltered, communication broke down, and the community was left with a perception of being forsaken. It was a mess. What's fascinating is what happened next. The community—motivated by their shared affection for the little waddlers—was not so easily defeated. They rallied. They organized. They brought out the founders and replaced them with new leadership.

Imagine those original incorporators as chess players who had logged a string of terrible opening moves. They gave away the store (trust, good communication) for temporary wins and in doing so jeopardized their future standing. The community came together like one super grandmaster. They understood the board entirely, understood the strategic importance of the Penguins and in what was nothing short of a masterstroke of a counter-attack. They didn’t only play great defense—they took command and flipped the game to their favor. Part of the new leadership’s savvy was an acknowledgment that the Pens weren’t mere JPEGs—they were a brand, a community, a shared identity. Through all of this, they kept the focus on building long-term value, producing meaningful experiences, and fostering communication with their holders.

The numbers speak for themselves. Pudgy Penguins are once again in the top 10 NFT collections, their sales are going through the roof, and their community is flourishing. This isn’t magic—this is testimony that an energized community can be the panacea for even the most arsenic-laden starts. That’s a lesson that so many other failing NFT projects need to learn and internalize.

Royalties Are Not Always Evil

As you may know, the NFT space is in the middle of a fierce discussion over royalty payments. Others contend that royalties are a dinosaur model, a transaction tax that punishes trading and impedes innovation. But others, myself included, have long argued that royalties are the key to rewarding creators and spurring innovation through competition and collaboration.

The Pudgy Penguins’ saga provides a unique lens through which to examine this burgeoning debate. Our new leadership team inherited a royalty structure that was not working and made changes quickly. They are not just hoarding the money themselves. Instead, they’re reinvesting those funds back into the community, funding exciting new initiatives, and building up the brand.

Here’s a crucial point that often gets missed: royalties aren't inherently good or bad. As with everything, it all depends on how they are used. Are creators taking advantage of royalties to line their own pockets while their community suffers? Rather, are they using those tools to create a healthier, more sustainable ecosystem that benefits us all?

It is hard not to compare that vision with the artisan communities of South Asia. For many of these craftspeople, their livelihoods have depended on a system that recognizes their unique expertise with fair compensation for their work. Royalties, in a legal sense, are a digital progression of this idea. These creations help creators create livable infrastructures throughout their own communities. This makes sure that the art and culture they produce will continue to be successful for decades after they’re first created.

We need to get past these binary clap the hands once simple “royalties good” “royalties bad” type comparisons. We look forward to continuing this conversation on how to create a more equitable and environmentally-friendly NFT ecosystem.

NFTs Have Potential Social Impact

To me, beyond the price charts and the speculative hype, NFTs represent a powerful new force for social good. There are projects today that utilize NFTs to raise money for philanthropic efforts. They simultaneously empower marginalized communities, promoting equity, transparency, and accountability.

Think about a world where musicians from developing countries can find a global audience. They can sell their art directly to audiences, cutting out the traditional gatekeepers and making a living wage. Now, picture a world where nonprofits and charities could utilize NFTs to trace funds through the system and guarantee that funds are making a real impact. Now picture a world where communities use NFTs to collectively purchase, govern, and steward assets. This groundbreaking change creates new and dynamic doors to economic empowerment.

This isn't just a pipe dream. That’s not a pipe dream, that’s totally possible and it’s what we should all be working towards.

Even more than this, the Pudgy Penguins’ reboot is evidence that the NFT space is still in its infancy, still in flux. There will be great ideas, and there will be flops. If we stick to the values of community, innovation, and social good, our future with NFTs is very bright. Let’s get back to our roots and these values, and see what happens! This space acts as a proof of concept that is still very much in development. It’s our responsibility to make sure we’re getting the most out of it!