Proposal to start Haunt 3

Proposals by Gotchi Gov'nuhs
1

In the recent few days, we’ve observed some very passionate, heated and heartfelt discussion regarding the outcomes of haunt 2 (from hereon referred to as H2), the impacts of them on H1’s rarity and viability in a BRS context, and the way we as a DAO should adjust or move forward with those outcomes.

As an alternative to outright buffing Haunt 1 gotchis and kicking the viability can down the road so to speak, I propose we as a community embrace their status as collectors items and symbols of the aavegotchi genesis. The first settlers in a strange land. The original gotchis, with all their rarity warts, weird stat distributions, uninformed choices made before a thriving resale market, and the interesting stories of both them and their owners.

The reasoning for my proposal is twofold.

First and foremost; we as a community have not tackled the “scarcity meme” yet. Haunt 2 closed portals are going for a whopping 500GHST on the aftermarket. This is equal to above $700-$1000 US in current market variance, which is objectively expensive for gamers and a mass audience, as we can infer from the average price of games and gaming equipment ranging between $5 and $500 (in the case of a new console purchase).

It is my opinion that we can do better than that. Lickquidators will be an excellent step toward it and are probably one of my favourite additions on the roadmap, but it may be prudent to make the transition from Lickquidator to a fully fledged aavegotchi smoother - collecting $1000 worth of currency ingame is going to be a LOT of slurping.

I therefore propose we flatten the curve at a faster velocity and speed ourselves toward peak market saturation with a gigantic campaign oriented at affordable collectable pets. We could really embrace our polygon strengths of low fees coupled with our incredibly engaging GBM style auctions to rock the crypto world and take Axie Infinity’ and other crypto collectible’s lunch.

Secondly, from my own point of view as being very heavily invested into H1 gotchis that are now less competivite (full disclosure here for all the readers!) - I believe it is more beneficial to hurry along H1 to their status not as gameplay vessels per sé, but rather as symbols of status and as mementos of the earliest days of Aavegotchi.

To put it frankly, if my best H1 gotchi and other H1 gotchis like him are not competitive at the cutting edge, it is not in the best interest of me, and community members like me, for there to be a dillutive subset of incredibly competitive H2 gotchis, when that does not come paired with many of the benefits that a large dilution is to bring the ecosystem.
Having 50% more wallets active in Aavegotchi is a testament to how far we’ve come, but it is also an indicator that we are still pricing out a very large, perhaps silent, majority of gamers and crypto-interested people. Simply put, 50% is not enough yet. Not for me, not for our community as a whole.
I am thrilled to be diluted if it means there are 10,000 more users playing with me, enjoying the game with me, backing the ecosystem with me, and petting gotchis with me.
I am less than thrilled to be diluted if it means a small few hundred users come over to eat my cake.

If you’re still with me after this wall of text, good job, Tommy Gotchi offers you a juice box for your time. :beverage_box: A quick summary for all of those who need some more sugar:

  1. H2 has been a success. GBM style auctions are here to stay and they helped price discovery along very smoothly

  2. H1 has been diluted, at least at first glance, by H2. This was expected and indeed one of the reasons the first H2 proposal was shot down all those months ago.

  3. H2 Aavegotchis are still priced at a price point where it is difficult for mass-adoption to take place

  4. Given the fact that dilution is already here, the cat is out of the bag so to speak, I propose we embrace our strengths by minting another 50,000 H3 portals (amount pending discussion) - as our way of smoothing out the dilutive curve and giving more wallets a chance to interact with our flourishing ecosystem.
    I believe dilution is not only inevitable on a long enough time scale, but even desirable so long as the sourness of losing your ranked spot is paired with the sweet fruit of community growth and mass awareness of our beautiful project. Let’s plant the seeds for that sweet harvest together as a DAO.

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2

gek

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I think it’s an excellent idea, as long as H3 is paired with a massive marketing campaign. H2 was a relative success in terms of users growth, but not enough as you mentioned.

It would also have to be well timed, just before the launch of the realm Citaadel maybe?

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My first thought was HELL NO. Then I read your wall of text, and I kind of get where you are coming from. HOWEVER, I think we need something to do with our gotchis before there is a point to the mass adoption. Right now, I see a lot of new gotchi owners, opening a portal and saying “how much can I flip this for”. Because all we can do with our gotchis (now) is pet them, play minigames, buy/flip wearables, and collect GHST in Rarity Farming. (OK that was a longer list than expected when I started typing it) But all those things are really only about building the gotchis’ value.

Mass adoption needs something else (lest we continue diluting gotchis with no payoff) - the Reaalm. Haaunt 3 should be after Reaalm release. It’s not really that far off, considering we have a 2 month RF season coming and then Reaalm sale & Citadel launch in December.

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I personally can’t quite see the logic here, but it might be a genius more and I might be smol brained :wink: . But this ‘solution’ seems totally unrelated to the initial ‘problem’ . I get that H3 will bring down H2 much more than H1…and would probably be good for my bags in the short/medium term… but it has a risk of damaging the ecosystem.

If we just flood the market with Aavegotchis and a massive H3, that in itself is not going to increase distribution. If H2 got 50% increased wallets, then a H3, so soon after, is going to have a far smaller increase (e.g. extra 10 -20% of wallets?). Unless there is some massive marketting campaign at the same time ? All of us Aavegotchi bulls are just going to snap up as many cheap H3 portals as possible. I don’t think it helps distribution in a meaningful way, and will cheapen the very core ‘thing’ which the whole ecosystem is built around for some time to come, having cheap, easily accessible things, doesn’t correlate with desire and energy to be part of a community… this might have serious long term negative repercussions which no-one can predict. I see negative risks with no clear upside.

Long term… I’d still be bullish regardless, and would just buy more portals I guess… But this seems convoluted and adds unnecessary ‘risk’ and more unintended outcomes.

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If you are concerned about dilution why don’t you buy haunt 2 portals. Why have haunt 3 now straight away? Is it because you can get a better price for haunt 3 portals in auctions given that lots of people would have spent a lot of their GHST?

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My reasoning for a H3 is very clear in the OP, and it has nothing to do with people having spent their GHST or not. I have spent over 80% of my own GHST holdings in the recent drop and I am heavily invested in H1, neither of which I will keep a secret, and something that is very visible on chain for anyone who would care to know it.

I believe that if the consensus of the DAO in regards to our recent perceived events is “H1 is diluted and that is fine, working as intended” - then launching more portals is prudent, both for H1 owners and for our ecosystem as a whole.
As it stands, we have a large observed amount of dilution with a comparatively small observed amount of new aavegotchi wallets joining the fray.

This leads me to the conclusion that either our price of entry is still prohibitive, or our outreach has of yet not been effective enough, which is why I suggest pairing a new haunt with a massive marketing campaign, potentially funded by the DAO treasury if that is not within the scope of what Pixelcraft can support.

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Flooding supply by 50k quickly after haunt 2 seems risky to me. Why would a newbie participate in a haunt when the supply is growing so rapidly?

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I believe @Cookiethief wants this proposal as a last resort, as he stated in the DAO Discord channel. I don’t want to speak for him (he can do that more eloquently than I), but I think this proposal sounds like this: if we can’t agree on how to solve the dilution problem for H1 gotchis, let’s embrace mass adoption now so that EVERYONE suffers from dilution. We want new comers and a level playing field? Let’s have it by opening the flood gates.

Nevertheless, I don’t think having The Mother of All Haunts and a massive marketing campaign is going to bring mass adoption right now. There’s no game play yet and Polygon onboarding is still challenging for some users. The only thing we’re going to achieve is for current gotchi holders to continue accumulating thus turning gotchis into zucchinis. This in the long term will promote canibalism as the only deflationary measure to deal with the surplus of gotchis.

Dilution is an issue that needs to be addressed, otherwise as somebody mentioned on Discord, the meta will become to sell all gotchis at the end of each RF season, since a new gotchi will be able to compete just as easily as an old one. But who’s going to buy the old ones?

I think we can achieve a balance between aiming for mass adoption while preserving the value of gotchis from past Haunts.

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This is not a solution to the dilution problem. If you flood supply in Haunt 3 you are going to have to flood supply even more for Haunt 4. Then the next Haunt etc.

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Why would they join after seeing what happened to day 1 buyers?

H2 proponents in general said it was all about the adoption, not their selfish interests.

Let’s keep adoption going, now that we have sacrificed so much to get on this path, we can’t stop now to protect H2 bagholders.

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I just see a lot of annoyed H1 whales trying to ruin the game by flooding supply while pretending to care about adoption.

Why take away dev time and focus away from the Citadel REALM work which is the real pathway to adoption and use it to flood supply to give H1 whales a chance to pick up cheap portals?

There was a significant gap between Haunt 1 and Haunt 2. If you keep flooding supply Gotchis will become worthless.

If you are concerned about dilution buy haunt 2 portals. Make sure to participate in XP events and minigames and pet daily to reduce the effects of dilution of your Haunt 1 gotchis.

You have got haunt 2 Aavegotchis going for as low as 295 GHST and open portals going for 275 GHST and you could even just stake GHST for frens and you might be lucky enough to get a winning drop ticket in the portal raffles. GHST has dropped to 1.85 USD. Entry points are much more affordable now.

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I think I was clear in my post when I said that I am not in favor of an H3 at the moment. All I am saying is that dilution is a problem and that we need to find a balance between achieving mass adoption while preserving the value of older gotchis.

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Maybe the solution is more opportunities to earn XP between haunts that can be spent on leveling up and spending spirit points. And don’t forget to pet.

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It might be in the DAO’s best interests to create a longer term plan for how haunts will be released, perhaps by committee, perhaps on chain. IMO, it’s completely unsustainable to have this argument too many times. I think starting to create a long term plan on how to release gotchis even if it’s a non-commital plan would put a lot of these arguments to rest, rather than panicking every time we have a drastic change in the supply of gotchis. I think the best way we can avoid conflicts of interest and heavy disagreements is by creating a plan that the community agrees upon in advance, preferably enforced on chain.

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You are speaking in hyperbole here, but that aside, this is simply an alternative resort put forward by me.
If we are increasing adoption and depressing price routinely as part of our core offering, great- it’s good to all be on the same page regarding that, and I do agree with your statement that it is healthy to have the realm up and running as soon as possible no matter how large our haunts become.

The point here is simple, if we are going to fully embrace the dilutive curve, why stop at 15.000 haunt 2 gotchis when the price is hovering around 295 or 275, something you are calling affordable in your post, when the pain point for Haunt 1 was gotchis costing 300-500 GHST at the time, about the exact same in dollar value as H2 now?

Maybe we shouldn’t have more gotchis, that’s why we are discussing it here on an open forum. However, calling it careless and an attempt at ruining the game is both disingenuous and incredibly lacking in empathy for whales and the smallest wallets alike.

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You haven’t given me a good reason why you can’t just buy Haunt 2 portals to get around your dilution concerns, excessively inflating the supply quickly is not a proper solution to this issue of dilution.

We just had GBM auctions, newbies had a chance to earn more GHST just by losing bids.

I will start to lack empathy when your solution seems to be tear the value of all gotchis down by flooding the supply just so a subset of H1 gotchi owners can be protected.

I own both H1 and H2 gotchis. I don’t see how this proposal benefits me as a H1 gotchi owner or a H2 gotchi owner. Even with the best marketing, if we inflate supply like this, it would turn new people off.

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Not a fan of printing 50k portals at this time.
I would prefer we launch the gotchiverse first and have a major marketing campaign before that.

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I consider myself one of the fierce advocates for small wallets and favoring new user acquisition over almost any other factor. That being said, flooding the market before the REALM makes very little sense. I would champion things like portal airdrops to individuals who rent gotchis to play minigames or otherwise engage in the platform without a gotchi. The same could be done for lickuidator wallets. Basically, reward people for playing, but MAKE SURE the reward has value. Definitely take a step back and realize the gotchi supply just exploded (and will continue to inflate with this raffle). We will see the supply drop and, hopefully, demand grow as we get closer to the X-mas. I would love to see a comprehensive, multi-faceted effort to drop portals/gotchis to new users after the game really debuts.

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This makes sense from a long-term realm perspective at the short-term price detriment of H1 OGs (not me) and H2 apers (me).

What I deliberate on is whether an expedited H3 plus marketing blitz would be more effective than just getting OS compatible and verified. We’re missing so many new eyes and pre-reveal hype because of that. For H3, I wonder if part of the marketing blitz isnt simply doing a chunk of the bid-based offering via portal rights on OS that can be claimed for a portal in the bazaar at any time (a set amount outside the grasp of GBM for ANY currency and not just GHST).

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