Pudgy Penguins: Embracing a New Royalty Strategy for Crypto Winter Survival



In the ever-evolving world of NFTs and crypto, Pudgy Penguins are charting a unique course for success during the crypto winter. As NFT sales experience a seven-week decline and NFT giants like Yuga Labs and Proof Collective announce significant layoffs, Pudgy Penguins have devised a brilliant strategy that combines gaming and intellectual property (IP) focus. This article dives into the Pudgy Penguins’ innovative approach and their royalty system for licensed penguins sold at major retailers.


Adapting to the Changing NFT Landscape


Yuga Labs’ Pivot

Yuga Labs, a prominent name in the NFT space, recently faced the music by announcing layoffs and a strategic shift. They decided to outsource game development to third parties and concentrate on their Otherside metaverse and community. This dramatic change highlights the challenges of creating engaging games and raises questions about the viability of a game-centric strategy in a volatile market.

Pudgy Penguins’ Recipe for Success

In contrast, Pudgy Penguins have thrived during these challenging times with a two-tiered approach that combines gaming and intellectual property. Their relentless marketing efforts outside the traditional NFT community have paid off. Notably, Pudgy Penguins toys can now be found on the shelves of 2,000 Walmart stores across the United States and Smyths stores in the United Kingdom. To date, a quarter of Walmart’s Pudgy Penguins toy inventory has sold out, signifying substantial success.

Pudgy Penguins’ New Royalty Strategy

The Insight from LucaNetz

In a recent revelation by Luca Netz, the core numbers of Pudgy Penguins’ royalty business for Pudgy holders were exposed. Pudgy owners stand to gain 10-15% of net with royalties.

The Walmart Scenario

Let’s examine this strategy in action with a Walmart order as an example. Walmart placed an order for 800,000 Pudgy Penguins with an estimated retail price point of $8 each. Thanks to vigorous negotiations, Pudgy is expected to net 15% on this initial order, amounting to $960,000 in gross revenue.

Licensing for Future Orders

The strategy doesn’t stop there. For the next Q4 purchase order, there will be a licensing of 50 to 100 Penguins. With each licensed penguin bringing in approximately $2,000 at 15% of net, the potential returns are remarkable. This approach aligns perfectly with the Pudgy Penguins community and their business ethos.


Pudgy Penguins’ innovative two-tiered model, combining gaming and intellectual property, is redefining success in the NFT space. Their expansive marketing efforts have resulted in widespread success, even during a crypto winter. Furthermore, their royalty strategy for licensed penguins demonstrates a commitment to their community and a formula for long-term prosperity. In an NFT market that’s constantly changing, Pudgy Penguins have shown that adaptability and community engagement are key to thriving.

Stay tuned for more updates from Pudgy Penguins as they continue to navigate the dynamic world of NFTs with their pioneering approach.

This article is an exploration of Pudgy Penguins’ new royalty strategy and their success during the crypto winter. It showcases their unique approach, combining gaming and intellectual property, and highlights their promising future in the NFT space.


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