BIP-01: Set a Minimum Bid Price for Botto's 1/1s (Auction)

Ben

One thing to add… 10eth is just a starting point for the min bid price. It can be adjusted upwards over time if need be. For example, if Botto sells for a few consecutive weeks much higher, the min bid price should probably move up to reflect a new floor. I have an idea for how the calibration could be done, but thinking we can cross that bridge if/when the time comes and for now want to keep this proposal as simple as possible.

hudsonsims

Propose the min bid is 13.37 ETH for this elite project.

I am 13.37% joking

Ben

hudsonsims

Kinda like this...thinking to start at 10eth since the floor has been around there historically and would be easier to get support for that. Then over time it can be calibrated as follows to ensure it's not too low (or high):

If Botto receives three consecutive sales (the Min Price is met three weeks in a row), the Min Price for the following week is set to the lowest sale price from the last three weeks. For example, if the Min Price is 10eth, and Botto gets three consecutive sales at 15eth, 13.37eth, and 18eth, the new Min Price would be set to 13.37eth.
If the Min Price is NOT met during any auction, the subsequent week's Min Price is set to the average of 10eth and the last Min Price. For example, if the Min Price is 13.37eth and it is not met, then the next week's Min Price would be 11.7 ETH (halfway between 10 and 13.37).

hudsonsims

Ben I like the dynamic/reinforcing floor. I wonder what would have happened had this been in place from the beginning.

I like keeping this as a phase 2 approach to how to raise the floor that is algorithmic rather than needing be deliberated each time.

quimp

10eth is very straight forward. You have my vote.

Any pieces that do not receive bids at or above this price would be kept in the minting wallet (or transferred to a vault if that is more secure). At the end of the 52 week genesis period, Botto DAO will determine what to do with any unsold pieces.

Does this mean that on any day within the first year, I can buy/start an auction on any piece that has not been bought in the past 52 weeks?

Ben

quimp

Does this mean that on any day within the first year, I can buy/start an auction on any piece that has not been bought in the past 52 weeks?

What I’m picturing is that any unsold pieces (if there are any) are transferred to the Botto treasury and stored there until the end of the 52 weeks at which time BottoDAO decides what to do with them. Keeping a 10eth reserve is another option, but it could distract attention from new pieces if there were a number of old pieces listed. It would also remove the scarcity factor of a limited time to place a bid with the clock ticking down, which helps motivate action.

Wikdst

I think a minimum makes a lot of sense. We've already established a range with enough sales to justify a 10E minimum. You have my support.

mrubio

As I mentioned in the Discord discussion, my concern is how this might affect the number of bids, which seems to me like a more presing issue. It feels more natural to me to try to get bigger sales by boosting bids, instead of starting with setting a floor price.

Anyway, if this proposal went through, maybe it could come with an evaluation mechanism. A certain number of failed auctions in a certain amount of time should make us reconsider.

Ben

mrubio I think setting a base price will result in higher sale prices by motivating higher starting bids, but that is something to evaluate. The more important piece in my mind is protecting the long-term value.

Agree more bids would be great, and I think we can pursue that by e.g. outreach/immersive airdrops to SuperRare collectors, collector DAOs etc. And of course, CyborgDAO is a huge boost here. Both in terms of bids and community engagement. Currently, ₆₈ members of CyborgDAO so that's basically 68 people bidding together and that number should continue to grow.

I'm with you on evaluating performance on an ongoing basis e.g., monthly/quarterly. The calibration strategy I mentioned above could be used to adjust the base price up if/when 10eth becomes too low. And likewise, it could be lowered if need be.

justinn

Ben secure). At the end of the 52 week genesis period, Botto DAO will determine what to do with any unsold pieces.

what’s the reasoning behind waiting until the end of the genesis period? seems like we could start experimenting right away - the sooner we learn what works to bolster our community, the better.

Ben

justinn
It would greatly simplify things. Also, the most promising option I can think of would be fractionalizing a collection of any unsold pieces as a whole, which would require waiting. I think that could be very profitable for Botto, for the reasons I mentioned in the proposal. But I think that’s a decision that should be made at the end of the genesis period when more information is available and we can see where Botto is at then. It’s entirely possible too that there won’t be any unsold pieces, especially with CyborgDAO in the picture now.

Agree with the broader point that we need to experiment and learn as much as possible at this stage. If someone had a really promising idea for something to do with any unsold 1/1s before the end of the 52 week period it should be considered. Otherwise, there's a lot of different areas that Botto is and can continue to experiment in, related to community growth, marketing, incentives, UX etc.

juanje

Agreeing with mrubio on assessing the mechanism after some months, I would vote yes.
Main argument: potentially beneficial, with very few/non-existent irreversible issues, and a perfect candidate for a first voting.