This proposal introduces two new incentives for bidding on Botto 1/1s:
- Winning bidders (collectors) receive the $BOTTO equivalent of 15% of the auction sale price
- The runner-up (2nd highest bidder) receives the $BOTTO equivalent of 10% of the final sale proceeds
Botto's 1/1 sales remain the project's primary revenue source. However, the NFT art market is in a lull, and sales have slowed down.
These new incentives may help catalyze bidding activity. They also introduce a new way to distribute ownership in Botto the artist via $BOTTO to those who show conviction in the project by bidding on its works.
- Catalyze bidding activity on Botto 1/1s
- Distribute ownership in Botto the artist via $BOTTO to those with demonstrated conviction in the project
- Motivate earlier bids on Botto's 1/1 auctions, resulting in more exposure on SuperRare
Botto 1/1 collectors receive 15% of what they spend back in $BOTTO
Note: this only applies to Botto's 1/1 auctions subsequent to the passing of this proposal, not to prior auctions
For example, if a collector spends 10 ETH on a Botto 1/1, they would receive 1.5 ETH worth of $BOTTO.
If there are two or more bids on a Botto 1/1, the second-highest bidder receives 10% of the final sale proceeds in $BOTTO
For example, if Bidder X meets the 10 ETH reserve but is subsequently outbid and the final sale price is 12 ETH, Bidder X receives 1.02 ETH (12 * .85% * .1) worth of $BOTTO. Note: 85% is the artist's cut on primary sales on SuperRare.
Both clauses 1) and 2) are based on the price of $BOTTO in ETH terms at the close of the SuperRare auction in question.
These incentives will be implemented for a pilot period of three months (12 auctions). By default, they will expire after this time, unless Botto DAO decides to renew them.
$BOTTO spend depends on auction activity and the ongoing price of $BOTTO in ETH terms. Any $BOTTO spent would be sourced from the Botto treasury.
Criteria of Success
- More bidding activity on Botto's 1/1s
- $BOTTO ownership is further distributed to project participants with demonstrated conviction in Botto
May create sell pressure. This risk is mitigated by filtering for collectors with demonstrated long-term conviction in Botto.