In light of the successful OTC with Moderats, BIP-18 requires a follow up on how we handle our treasury-owned Genesis Period artworks. With the BIP-18 Snapshot passing, the DAO must retain 6 Genesis artworks in the treasury until a future proposal removes the clause.
With more collectors having declared interest and with prior discussion already taking place throughout BIP-18, we should seek to have a final version of this BIP on Snapshot by Thursday, 19 January at 21:00UTC with the standard 3 day voting interval.
This BIP has five points to it:
- Transfer treasury-owned artworks from Treasury to botto.eth
- List 4 treasury-owned artworks on SuperRare at a 10ETH Reserve
- Allow a collector to kickstart a 24 hour auction after meeting the 10ETH reserve for a remaining treasury-owned Genesis Artwork
- Also allow a collector and the DAO to transact OTC for 15ETH buy now price without auction per remaining treasury-owned Genesis Artwork
- 100% goes to the treasury for now with later distribution occurring in the 3rd period according to the 3rd period’s revenue model (currently unspecified).
In light of the successful OTC with ModeratsArt, BIP-18 requires a follow up on how we handle our treasury-owned Genesis Period artworks.
Four Artworks Remain
With the BIP-18 Snapshot passing, the DAO must retain 6 Genesis artworks in the treasury for an undetermined period. Naturally, this means there are four Genesis artworks that are available to prospective collectors.
Based on feedback from BIP-18, it is clear that the DAO is undecided on the immediate and long term valuations of these remaining four artworks, understandably disliking the idea of conducting future OTC transactions for a fixed sum of 10ETH. For additional context, this sum acted as our reserve price for Genesis Artworks in Botto’s First Period, highlighting the DAO’s conviction that we were in no desperate position to part ways with any of Botto’s Genesis creations. This stance is likely reinforced after the recent OTC transactions by Moderats.
Tackling A Visibility Issue
The availability of treasury-owned Genesis Artworks to collectors is currently obfuscated, with the artworks not having a listed price, no method to bring it to auction, and the owner being labelled as ‘anonymous’ directly on SuperRare’s Frontend.
A straightforward course of action to take would be to transfer these back to the botto.eth address (labelled @bottoproject on SuperRare) to clarify to prospects that these treasury-owned artworks are unsold and available. The benefits of this step would be obvious.
A second course of action that the DAO could take would be to list four of these artworks at random with a 10ETH 24h reserve auction, directly on SuperRare. Every two weeks, four different artworks would be listed, with the original four listings removed. This ensures that the DAO can never be ‘frontrun’ and exposed to retaining less than 6 Botto Genesis Period artworks at any given time, and gives stronger visibility to the availability of Botto’s Genesis Artworks.
A collector bidding 10ETH in this instance would result in the kickstart of a 24 hour reserve auction, allowing the collector to conduct business with the DAO swiftly and without drawn out negotiations. This benefits collector experience and allows the DAO to conduct price discovery for artworks.
The rationale behind maintaining the 10ETH reserve for remaining Genesis artworks is twofold. First, the reserve had been set in the Genesis Period which all prospective collectors were required to follow during auction. Second, this 10ETH reserve does not misalign with existing Genesis collectors.
Finally, in the event that a collector wishes to acquire one or more Genesis Period artworks that are currently unlisted, this can be accommodated in a swift manner by removing the equivalent amount of currently listed artworks.
Allowing for OTC at a Premium
Collector conviction is an important momentum driver for Botto. A lot of collectors, today, are in some way connected with another. There is a network effect here that cannot be understated - ensuring growth of Botto’s collector base should always be top of mind. For this reason, it is proposed that we do not discard the idea of future OTC transactions.
Instead, it is proposed that the DAO may OTC at a 50% premium to the 10ETH reserve we have used in the past. This means any collector can acquire one (or more) of the Botto 1/1s at 15ETH, without having to enact a BIP and wait for the DAO to go through a voting process.
Rightfully mentioned by one DAO member, staker and VP spending ‘tourism’ may be problematic when dispersing auction proceeds as active rewards. To mitigate this and discourage misaligned incentives, subsequent sales proceeds from the four Genesis Period artworks would be placed in the treasury, eyeing a distribution method that would be determined by Botto’s revenue model in the 3rd period (to be discussed).
- Transfer treasury-owned artworks from Treasury to botto.eth
- List 4 treasury-owned artworks on SuperRare for a 10ETH Reserve Auction
- Rotate between 4 treasury-owned artworks per month for visibility purposes
- If an artwork with declared interest is unlisted, allow the DAO to replace one of the existing Reserve Auction listings with the artwork with interest
- Also allow a collector and the DAO to transact OTC for 15ETH per remaining treasury-owned Genesis Artwork
- 100% of proceeds from these four artworks would go to the treasury for now, with later distribution occurring in the 3rd period according to the 3rd period’s revenue model (currently unspecified).
- Having a streamlined manner of handling incoming offers on behalf of the DAO
- A positive collector experience upon approaching the DAO
- Offering a collector two routes to acquiring Botto Genesis artworks
- BottoDAO still holds a minimum amount of Botto’s Genesis Period collection
- Reward revenue can be determined at a later date by the DAO to mitigate bad actors
- While the DAO would still hold 6 more Genesis Period artworks in its treasury, potential price appreciation in the four remaining Genesis artworks is the opportunity cost