Summary
As a DAO, we need to decide on the details of Botto’s upcoming Fourth Period. This proposal follows a similar format to the Second Period and Third Period.
*The Economy section of this proposal has been separated into a separate proposal, BIP-30: Fourth Period (Economy)
Key changes include:
- 2 new models introduced to Botto’s Art Engine
- Negative VP expenditure is introduced
Retroactive rewards are removed Moved to BIP-30
Here is a bullet-point summary of the proposed format:
0.1 The Art:
Art Engine:
The addition of two new models:
- Stable Diffusion 2.1
- Kandinsky 2.1
The inclusion of existing models:
- Stable Diffusion 1.5
- VQGAN + CLIP
Initial balance of new voting pool:
- Each new model receives a 25% allocation to the voting pool for Round 0.
- This allocation (50%) is proportionally taken from the shares of the previous collection of models
- The resulting initial distribution is:
5.5% VQGAN+ CLIP
44.5% Stable Diffusion 1.5
25% Stable Diffusion 2.1
25% Kandinsky 2.1
Reasons for balancing with 25% to each new model:
Increased visibility: A higher starting percentage ensures that each new model's artwork will be seen and evaluated more frequently from the start.
Faster feedback loop: With more artworks from the new models in the voting pool, we will collect DAO preferences more rapidly, helping Botto quickly (de)prioritize models
Fair competition: Starting with a 25% share for each model can help level the playing field, giving each model an equal opportunity to compete from the outset.
Respecting existing distribution: This respects the current distribution as of Period 3 / Round 11.
Diversification: Introducing new models with a significant share theoretically diversifies the artwork (style, range) in the voting pool
Encouraging new models: By giving new models a substantial presence in the voting pool, the DAO encourages the development and introduction of innovative models, as they have a more significant opportunity to impact the Art Engine.
A significant implication to this implementation is that VQGAN has less opportunity to compete in subsequent rounds due to receiving a 5.5% allocation, which is 4.5% below the 10% cutoff threshold. If it does not hit 10% of votes in the first round it would be removed.
Art Engine Specifications:
- Botto creates artworks of varying aspect ratios (artwork format)
- Voting pool rebalances based on voters’ model preference
- Voting pool artworks rebalance based on voters’ preference on artwork format
- An art engine model is discontinued if less than 10% VP is spent on the model artworks in any given round
- 350 Artworks each round are culled by least-earned cumulative VP
Theme:
- Uses one theme curated by the DAO.
- Twelve themes are presented to the DAO
- Five of the highest VP spent themes from the Third Period are included
- Six of the lowest VP spent themes from the Third Period are removed
- Seven new themes are presented by Botto
Period Format:
- 12 Week Period
- 1050 Artworks in Voting Pool
- Manifold contracts used
- Artworks auctioned on SuperRare
- Rounds follow the same weekly format as seen in previous periods.
- There will be no extended first round.
Period Key Dates:
- May 19th - May 23rd: Theme curation via Botto.com
- May 30th 22:00CET / 16:00EDT / 13:00PDT: Fourth Period Starts
- June 6th 22:00CET / 16:00EDT / 13:00PDT: First round ends
- June 7th 22:00CET / 16:00EDT / 13:00PDT: 1st Mint & Auction
- August 22nd 22:00CET / 16:00EDT / 13:00PDT: 12th Mint (last artwork of 4th Period)
1. Rationale
Botto’s Third Period used VQGAN+CLIP and Stable Diffusion 1.5, and had introduced overarching themes to guide its art over a twelve week period. With the addition of Stable Diffusion 2.1 and Kandinsky 2.1 in the 4th Period, there will be tighter competition in the voting pool between models, reinforcing the DAO’s desire for Botto to have an art engine that autonomously self competes between methods.
Negative voting point expenditure is another significant value-add to Botto’s art engine, essentially allowing the DAO to shift sentiment on a whim for any given fragment and/or model. This “downvoting” can be used to drive a fragment out of a pool or deprioritize a model as a whole, enabling Botto to work within a sharper aesthetic focus.
2. Art Engine Proposal Specifications
Several changes are awaiting DAO approval with respect to an improved art engine: two new models and negative voting expenditure.
2.1 More Competition in the Art Engine
We're excited to introduce Stable Diffusion 2 and Kandinsky 2.1 into Botto’s art engine. This signals that we as a DAO continue to iterate on Botto’s art engine, allowing Botto to create more freely across a broader spectrum of models. The introduction of two models further signals the art engine’s ever growing, self-competing nature.
Stable Diffusion 2.1
Discrepancies between earlier models of Stable Diffusion and its later iteration, SD2.1, are fairly well documented. A shift to OpenCLIP, coupled with an increasing importance in negative prompting, will likely cause aesthetic differences between both models. Introducing SD2.1 allows for Botto and the DAO to explore these discrepancies as well as core differences between each model, with the expectation that each model will diverge stylistically.
Kandinsky 2.1
Aptly named after Wassily Kandinsky, Kandinsky 2.1 is a latent diffusion model with two multilingual text encoders. Out of the box (aesthetic) performance rivals Stable Diffusion 1.5, with experiments showing significant improvement in how Kandinsky understands prompts when comparing the two. Some compare the model to earlier Midjourney models. Introducing Kandinsky 2.1 allows Botto to venture into new territory and perhaps add another aesthetic to Botto’s art.
As of the Third Period’s final round, Stable Diffusion continues to dominate the voting pool, accounting for 89% of all outputs (up from 69.53% of all outputs each week since the beginning of Paradox). VQGAN + CLIP now accounts for only 11% of the voting pool fragments. With this proposal, we would see this immediately drop to 5.5% in order to accommodate two new models. In short, the percentage distribution is based on Round 11’s Paradox values, where SD1.5 and VQGAN receive proportional distributions from 50% of the pool. See §3.2 for exact distributions.
As a reminder, if a model’s ratio in the taste model’s selection drops below 10% in a round and does not go back above 10% in voting, it will be discontinued. The community can decide to re-add the model if it wishes, as well as reconsider the automatic threshold in future periods. This means that VQGAN is required to perform in the first round of Botto’s Fourth Period, otherwise being culled from Botto’s art engine. The DAO may opt to reinstate the model in future periods should it wish to do so.
2.2 The Voting Pool
The fourth period voting pool will be populated with 1050 fragments. The initial distribution of the new voting pool is as follows:
5.5% VQGAN+ CLIP
44.5% Stable Diffusion 1.5
25% Stable Diffusion 2.0
25% Kandinsky 2.1
Reasons for balancing with 25% to each new model:
Increased visibility: A higher starting percentage ensures that each new model's artwork will be seen and evaluated more frequently from the start.
Faster feedback loop: With more artworks from the new models in the voting pool, we will collect DAO preferences more rapidly, helping Botto quickly (de)prioritize models
Fair competition: Starting with a 25% share for each model can help level the playing field, giving each model an equal opportunity to compete from the outset.
Respecting existing distribution: This respects the current distribution as of Period 3 / Round 11.
Diversification: Introducing new models with a significant share theoretically diversifies the artwork (style, range) in the voting pool
Encouraging new models: By giving new models a substantial presence in the voting pool, the DAO encourages the development and introduction of innovative models, as they have a more significant opportunity to impact the Art Engine.
A significant implication to this implementation is that VQGAN has less opportunity to compete in subsequent rounds due to receiving a 5.5% allocation (4.5% below the 10% cutoff threshold).
2.3 Negative Voting Point Expenditure
The introduction of negative voting points allows DAO members to express their distaste for particular fragments (if not models). This means that Botto is able to take into account negative sentiment, and that its art engine and models’ output are directly affected.
2.4 Artwork Format and Output Aspect Ratio
The final title, description, metadata, and URL to the bitmap on Arweave are all on-chain.
Botto will freely choose between varying aspect ratio artworks as seen in the Fragmentation Period, and will adjust its selection of format based on voting.
2.5 Manifold Contract
The fourth period will continue to use Manifold, with a new contract representing Botto’s Fourth Period collection.
3.0 Round Format
Round formats remain the same:
- New voting rounds begin every Tuesday, 21:00 UTC / 16:00 EDT / 13:00 PDT
- Leaderboard boosting opens up for final 24hrs every Monday, 21:00 UTC / 16:00 EDT / 13:00 PDT
- Voting rounds end every Tuesday, 21:00 UTC / 16:00 EDT / 13:00 PDT
- New fragments are added to the voting pool every Tuesday, 21:00 UTC / 16:00 EDT / 13:00 PDT
- Auctions are scheduled on SuperRare to begin every Wednesday, 21:00 UTC / 16:00 EDT / 13:00 PDT
- Auctions are scheduled to end every Friday, 21:00 UTC / 16:00 EDT / 13:00 PDT
3.1 Key Dates
The Fourth Period will last 12 weeks (3 months):
- May 19th - May 23rd: Theme curation via Botto.com
- May 30th 22:00CET / 16:00EDT / 13:00PDT: Fourth Period Starts
- June 6th 22:00CET / 16:00EDT / 13:00PDT: First round ends
- June 7th 22:00CET / 16:00EDT / 13:00PDT: 1st Mint & Auction
- August 22nd 22:00CET / 16:00EDT / 13:00PDT: 12th Mint (last artwork of 4th Period)
4.0 Budget
Software and hardware costs of running both engines approximately to $6,000 per month. We have separated parts of the engine to run on separate instances. With the introduction of SD2.1 and Kandinsky, this means a total of 3 new instances. We estimate this will cost up to $10,000 per month for the Fourth Period. The team will look to improve infrastructure to reduce cost where possible.
4.1 Disadvantages
- Negative VP expenditure is a new introduction previously discussed by the DAO, but there may be unintended effects.
4.2 Criteria of Success
- Continued growth in engagement (project entrants)
- Continued addition to Botto’s protocol narrative (earnings, rewarding Botto stewards)
- Successful artworks minted by Botto