Original post with community discussion: TIP-09 Accelerating Ecosystem Growth - Treasure DAO Forum
Summary
TreasureDAO is evolving to become a web3 ‘decentralised Nintendo’.
In practice, this means becoming the ‘base-layer’ for metaverse / NFT projects to build upon to create a vibrant ecosystem of builders and passionate communities. This will be underpinned by composable assets, modular primitives and bottom-up narrative/IP to create broad network effects that are all unified by MAGIC.
TreasureDAO’s role is to enable the above with infrastructure, tooling and resources to rapidly scale and grow. Revenue from Treasure’s services, GameFi products and marketplaces will be used to create a ‘flywheel’ that reinvests in and supports the growing network of builders.
The innovation and drive from the community to integrate and grow the ecosystem has been nothing short of phenomenal. New primitives and concepts emerge each day, moving far beyond what we could have imagined on day one. They have also forced a rethink on how best to balance scaling internally seeded projects with external partnerships.
It has become clear that current frameworks need refreshing to keep up with our collective ambitions. The Council proposes a targeted three pronged growth framework:
- Mining emissions from the Atlas Mine / Harvesters will be dedicated to internally seeded projects for the short-to-medium term. This will ensure incentives for participants across Bridgeworld, Life and Smolverse remain aligned and non-dilutive. MAGIC will be sourced from the ‘Mining’ token allocation (25% of total supply)
- Introduce a MAGIC Grants and Integration program for projects seeking to fold MAGIC and Treasure ecosystem NFTs deeply within their mechanics. These emissions will be funded from MAGIC received from the Treasure Marketplace royalties, Bridgeworld summoning and crafting and the Ecofund. This can be in the form of grants for:
- Bootstrapping capital / operational expenditure to supplement and/or replace paid mints (see Medium article for Evolving stance on paid mints)
- One-off / ongoing MAGIC emissions into their economy.
- One-off / ongoing Treasure emissions for games that integrate Treasures based crafting as a core game loop.
All grants would have strict assessment criteria and terms to ensure DAO MAGIC is used prudently and long-term aligned builders.
- Introduce a Treasure Divestment Bank where highly aligned projects looking to acquire MAGIC on market to participate in Bridgeworld / Life / Smolverse may buy MAGIC from the DAO via OTC at low discount (eg. slippage) as an alternative to buying on the market. This would greatly improve capital efficiency of the DAO Treasury to fund growth of core contributors and partner projects who require a MAGIC alternative versus divestment with funds who typically seek steep discounts. This MAGIC would be sourced from Treasure Marketplace royalties, Bridgeworld summoning and crafting, and, over time, the Ecofund.
Rationale
- Refresh frameworks (including TIP-08) to align investment in community enablement with collective growth ambition.
- Delineate MAGIC emissions for internally seeded projects that require balance (eg. manage dilution) from accelerating growth of external partnerships that build on Treasure.
- Attract and incentivise the best builders and most engaged, passionate community members to scale ecosystem growth.
- Bootstrap capital and liquidity while providing the foundational infrastructure / services for builders and communities to thrive.
- Actively drive network effects to all participants and value back to MAGIC.
Proposal
Introduce a three pronged ecosystem growth strategy:
MAGIC Mining Emissions
- MAGIC mining emissions are integral to the social coordination and game theory underpinning the broader Treasure-verse.
- It is proposed that MAGIC mining emissions remain targeted to core, internally seeded projects in the short-to-medium term to ensure sustainable balance of the respective economies. For the avoidance of doubt, this includes Bridgeworld, Life and Smolverse.
- Impacts to existing emissions and TIP-08:
- Mining emissions comprise 25% of total supply and are planned to be emitted through the Atlas Mine and Harvesters under a halvening model.
- TIP-08 proposed to bootstrap liquidity to one new project per quarter by diverting 50% of 2 weeks of MAGIC emissions from the Bridgeworld Atlas Mine and harvesters. Life and Smolverse were the Q1 and Q2 candidates respectively.
- There are no immediate changes to TIP-08.
MAGIC Grants and Integration
- A dedicated Grants and Integration program is proposed to help bootstrap and accelerate projects seeking to build on Treasure. These projects typically look to integrate MAGIC and Treasure ecosystem NFTs deeply within their mechanics / design.
- A detailed assessment framework has been developed to support the Grants and Integration process (see ‘Treasure Ecosystem Integration Framework’)
- DAO approval will ratify the execution of this framework; as such, approval for individual projects is not required
- There are three broad kinds of grants and integration:
- Bootstrapping capital / operational expenditure to supplement and/or replace paid mints (see Medium article for Evolving stance on paid mints)
- One-off / ongoing MAGIC emissions into their economy
- Integration on the Treasure Marketplace (and thus royalties in MAGIC).
- Conditions
- Projects must submit an application under the new ‘Treasure Ecosystem Integration Framework’
- There are six assessment criteria each applicant will be assessed against
- The process may take between 2-4 weeks contingent on volume of interest
- There are terms for applicants to align long-term interests and de-risk bad actors / impacts to the DAO, this includes:
- MAGIC (or other tokens) supplied by TreasureDAO will be vested and released at agreed milestones and design choices (ie. MAGIC emissions must be used in a thoughtful way, not simple farming and dumping mechanics). Ongoing emissions will be subject to periodic performance reviews (eg. token design, user engagement) to ensure alignment
- If the project has or intends to launch a native token, the project commits to:
- Token X <> MAGIC as their primary LP
- Listing on a Treasure AMM
- The project will provide TreasureDAO a commensurate value of NFTs / native tokens (eg. akin to a Treasury Swap) to align long-term interests. These will be subject to vesting periods. They can also be used as rewards in Bridgeworld, Life and Smolverse through codesigned game mechanics - this would require approval from the respective project
- MAGIC grants will be paid from the Ecofund (incl. Marketplace royalties, summoning / crafting and existing Ecofund tokens).
Treasure Divestment Bank
- There is a growing segment of aligned builders who seek to accumulate MAGIC to actively participate / play in Bridgeworld via the Atlas Mine / Harvesters - becoming pseudo project / guilds (an innovative approach to social coordination)
- Emissions from the Mine / Harvesters are then fed into the gaming economy of the underlying project (eg. as rewards or incentives)
- This initiative proposes to offer MAGIC to these highly aligned builders via OTC at minimal discount (eg. accounts for slippage) as an alternative to buying on the market
- Rationale:
- Greatly improves capital efficiency through significantly better MAGIC to stable conversion than divestment via venture capital or funds
- Allows more rapid scaling of core contributors and partnerships with people / projects who require ETH / Stables
- Puts MAGIC into the hands of builders who have the long term interests of the ecosystem at heart
- The Council proposes strict terms and vetting to prevent market manipulation, bad actors and governance attacks
- Conditions
- Must pass the same ‘Treasure Ecosystem Integration Framework’ assessment criteria
- Transparent OTC with minimal discount; all individual proposals over $1M USD will be put to DAO vote
- Limited accumulation and parcel size - no project may accumulate more than 1% of total supply or 5% circ supply via this initiative (if there is no lock/vesting)
- If the project has a native token, the following requirements apply:
- token x <> MAGIC pair
- listed on the MAGIC AMM
- liquidity mining incentives will be directed at Treasure’s AMM
- Treasury Swap (contingent on arrangement) - The DAO will negotiate an agreed amount of NFTs/native tokens to ensure long-term alignment. These will be subject to agreed vesting.
- MAGIC will be sourced from Ecofund, royalties and summoning / crafting.
Polling Period
The polling process begins now and will end at 07:00 UTC on 15 March. If quorum is reached, a Snapshot vote will be put up at (EDIT time) 10:00 UTC on 15 March.
Indicative Poll (MOVED TO SNAPSHOT)
For: Approve Ecosystem Growth Framework
Against: Reject and reconsider