Proposal: Pay the First Ever Aavegotchi Dividend Using Treasury Funds
TL;DR
- Pay a dividend totaling $500,000 divided equally among active gotchis
- The $500,000 will be come from the DAI holdings of the treasury which currently holds 1,737,447 DAI and 1,744,605 GHST (10/01/2021) ~$4.5MM total value
- DAI will be used to purchase GHST from the bonding curve
- GHST will be dropped to “active” gotchis
- Active gotchis are defined as gotchis with ≥80 kinship 31 days after the core proposal is passed
Brief Outline:
The DAO treasury is the most untapped resource within the Aavegotchi community. In the spirit of play-to-earn gaming, community building, and economy incentivization, a $500,000 investment in the community will have multiple positive downstream effects.
Play-to-Earn
The rise of NFT gaming projects signals confirmation of the market demand for play-to-earn gaming. As Aavegotchi seeks to gain marketshare and notoriety, the headline of “Half a Million Dollars Airdropped to the Aavegotchi Community” can be part of a multi-pronged marketing effort in new user acquisition. Moreover, it signals the DAO is active and productive by co-investing with Pixelcraft in marketable efforts and community incentivization. Additionally, it rewards actively engaged members of the ecosystem who own and engage with the gotchis – this is in spirit with the design of the bonding curve and overall economic strategy to date.
Community Building
We are all incredibly attached to and proud of our Aavegotchis. Rarity Farming rewards dropped to the Aavegotchi’s personal wallet instills pride in and fosters connection to the gotchi. This positive feedback is powerful, adds stickiness to the platform, and adds an additional “income streams” to our aavegotchis. This extends beyond rarity farming from which smaller holders may feel excluded and allows the single gotchi holder to feel seen and valued. This model offers meaningful profitsharing directly to our most engaged users, tangibly rewarding their time and investment.
Economy Incentivization:
Active participants within the Aavegotchi community inherently and steadfastly believe in the current and future product of Aavegotchi and the gotchiverse. It is likely that a meaningful percentage of the dividend will be reinvested into the ecosystem via portals, gotchis, wearables, and land. There can be no better investment than in Aavegotchi itself and its burgeoning marketplace and ecosystem. Further, we can study the effects of the dividend to guide future dividends and economy stimulus.
Financial Impact:
The DAO treasury currently boasts ~4.5MM of revenue garnered from portal sales, bazaar trades, and economic activity within the platform. The $500k dividend would represent ~11% of the current total and leave the community with >$4MM in funds to otherwise employ. Additionally, the surge in bazaar activity and pending land aauctions will further bolster the reserves. If ~7,000 gotchis qualify as “active” the dividend would be approximately ~45 GHST per gotchi.
Additional considerations:
Any and all of the above should be fiercely debated and possibly modified. I very much welcome feedback on how to determine “active” status. Further, it may be prudent to consider a reduction of the dividend for various reasons (precedent, unknown economic impact, etc). I would also need feedback from the Pixelcraft team on the resource requirement of such a dividend as impeding game development is a serious negative impact. I love this community and am proud to be a part of such a groundbreaking project.
– Dr Wagmi
