Pay the First Ever Aavegotchi Dividend Using DAO Treasury Funds

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

9 Likes

As a generalisation, I do think that keeping money\value moving is a worthy goal so I like this idea. But I am also concerned about how to tell if a gotchi or their owners’ wallets are active, in a way that benefits the gotchiverse as well as them.
Personally I enjoy petting my own gotchis, but I absolutely see why some owners use petting services; my gotchi’s suffer from “pet creep” where I’ve been asleep or busy in rl, so their kinship is lower than it would be if I used a service. Setting the kinship figure as suggested in the proposal would take account of pet creep and recent owners, so I like that.
The other situation I’d like to see addressed is for example discord members who regularly react or post, and may not own a gotchi yet; it would be great to encourage them. Perhaps check POAPs for gotchiverse events, although I also have to point out that some events such as AMAs are seldom available to people on the other side of the terminator**. Maybe award frens who hold Items only, (aauction wins or baazaar purchases).
Sorry for the wall of text, just wanted to respond as I thought of things.
** AKA dateline. Couldn’t resist.

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This sounds a little like kinship rarity farming but with different settings. Why deplete the DAO funds when we could put them to work somewhere?

6 Likes

Agree with idea but due to unknow economic impact and precedent being established, i believe we should limit the dividend to a maximum of 150k. This would limit economic impact and leave room to regularly distribute dividends. I believe it would also incentivize smaller players in eco system who are out of rarity farming.

I would like it if we could distribute the dividend on a per-wallet basis instead of per-gotchi. I saw a wallet with over 600 outfitted gotchi… I would rather the funds go to attracting new buyers (a 1st purchase rebate of sorts) than be swallowed up by the whales. Nothing against the big boys just think it would be better for everyone.

Or use it to buy back and burn GHST, it hasn’t been faring too well lately.

Then the whales will send their gotchis to individual wallets.

This idea will not attract new buyers, since all it does is incentivize petting (which is already strongly incentivized).

Burning GHST with DAO funds is essentially throwing it down the drain and would have little if any noticeable impact on GHST price.

(edit: I apologize for the snarky conclusion, “Keep thinking, guys,” now deleted; dontvaxmebro was right to point it out.)

I don’t even know how to send gotchis to another wallet but my assumption is that a lot of whales will not be bothered. In any case it seems a better distribution scheme if not perfect.

I guarantee there are potential buyers waiting on the sidelines because Gotchis are too expensive. It absolutely would attract new buyers but there are arguably better uses of funds in this respect.

Dividends distributed largely to whales is essentially “throwing it down the drain”. Worse a lot of it would end up right back on the market. I’d rather see it used to burn GHST than as dividends to each gotchi. Each gotchi owner would be better though, IMO.

Sorry fren, I don’t mean to be rude. Just direct.

I assume the opposite about “whales,” many of whom are not individual people.

A dividend that you have to already be in the ecosystem to know about will not feel like a discount. It’s also only about a 10% discount for a floor gotchi. You’re saying there are masses of people just waiting to pull the trigger for a 45 ghst kickback if they pet well? When they could have gotten in cheaper any time since H2?

I don’t know where you get the idea that dividends will go largely to whales. It’s also not true that whales are the enemy. And GHST “going back on the market” is what you should want, right? Bazaar activity is good for all holders. Burning used to be a bigger part of the economy, but devs modified it because it was found to be so ineffective–essentially, throwing it down the drain.

Yes, there are times when it would be nice to distribute to people rather than wallets or gotchis. Unfortunately, that’s not how crypto works.

Any ideas of my own for the treasury? Sure. We could LP, or trade for farm token incentives, or buy portals and floor gotchis and do giveaways on social media, or spend on marketing leading up the realm launch, or set aside funds to buy communal DAO land in the realm to bootstrap new users…

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I don’t mind direct. It was the “keep thinking” that rubbed me the wrong way, as if your comment closed the debate.

FWIW I’m not a proponent of dividends at all. My only suggestion is that if we do dividends it would be better to do per-owner (or at least attempt per-owner) rather than per-gotchi.

You’re putting words in my mouth several times over in restating my point. No, I don’t think there are “masses of people”. “Largely” isn’t very specific so I don’t know what idea you think I got. All I’ve said is that there are whales (600+ gotchi): they would benefit most in a per-gotchi dividend, while newcomers would benefit more from a per-wallet dividend.

I didn’t mean any ideas in general. I meant do you have any constructive ideas related to the idea of gotchi dividends. If you don’t like the whole idea that’s fine but I don’t know why you’ve focused on my post. I’m only trying to improve on OP.

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Fair, genuinely thanks for your time. I edited my original to acknowledge.

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You’re a credit to all Gotchi owners, sir, that was kind. Happy to discuss with you any time :slightly_smiling_face:

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