Summary
Introduce a Liquidity Bootstrapping Program to strengthen the network effect of the Treasure ecosystem and specifically the MAGIC token, and mitigate concentration risk on any single ‘game / metaverse’. This will be achieved through quarterly onboarding of approved projects where MAGIC emissions will be split 50/50 into an approved partner for two weeks.
Rationale
- Protecting MAGIC–for Treasure to function like a decentralized gaming company, the DAO token needs to be insulated from the failure of any specific game. While Bridgeworld is Treasure’s flagship product and will be receiving the majority of emissions, it is not Treasure. Treasure is a set of composable building blocks for building many kinds of interoperable metaverses. Onboarding new projects is crucial to establishing MAGIC as a cross-metaverse store of value.
- Ecosystem growth–the genesis mine was crucial for the explosive growth of the Treasure community. Allowing other metaverses to have similar genesis emissions is crucial to aligning Treasure with the wider ecosystem. Giving up some staking emissions to grow the pie 10x benefits the entire Treasure community.
- Bolstering MAGIC’s narrative as a "blue chip"–the more projects that adopt MAGIC as a key resource, the stronger the narrative becomes that MAGIC is the metaverse blue chip. Holding MAGIC is a bet on the central thesis of the metaverse, without having to bet on the outcome of specific projects.
- Virtuous cycle–initially, new projects will want to join the Treasure metaverse to offer their users a reward with known value. The liquidity bootstrapping event also allows nascent projects to generate a high amount of interest and speculation, thereby jumpstarting their community and internal resource economy. A virtuous cycle begins to take hold. The bigger that Treasure becomes, the more valuable this association becomes for fledgling metaverses even if the amount of emissions to new metaverses tapers off progressively during the program’s life cycle. Moreover, Treasure will not deter partner metaverses from developing their own local currencies. Because these projects trade on the marketplace (denominated in MAGIC), the DAO benefits from the growth of these projects no matter their local currency. MAGIC will likely function as a store of value in these metaverses, with the native currency being used as a medium of exchange and governance token.
- Trading fees–to qualify, partner projects must trade on the Treasure marketplace. Growth in partner metaverses generates direct value for the Treasure community since the DAO is the beneficiary of platform trading fees. Liquidity bootstrapping is a quid pro quo. The DAO offers a partner project an attractive value-add to their early stage users (payment in MAGIC!) while receiving in return a guaranteed percent of the total metaverse's value through marketplace volume. Distributing MAGIC to new ecosystem users aligns the entire Treasure community with the long-term success of our ecosystem's crown jewel, the MAGIC token.
- Incentivizing airdrops–since MAGIC holders have to explicitly approve projects for liquidity bootstrapping, new metaverses are incentivized to provide their NFTs to existing MAGIC and Treasure holders as a bargaining chip. Airdrops mitigate the impact of reduced MAGIC emissions by allowing Treasure community members to earn staking rewards in these partner metaverses.
Proposal
Each quarter, Treasure DAO will onboard new projects into the ecosystem using a liquidity bootstrapping program. This program will divert 50% of MAGIC staking emissions into partnering metaverse(s) for two weeks. To receive rewards, projects must meet three criteria:
- explicitly approved by MAGIC governance as a qualifying partnership
- trades exclusively on the Treasure marketplace
- clear roadmap for integrating MAGIC in a way that makes accumulation of MAGIC a focal point of metaverse strategy.
[EDIT] After the initial genesis event, partner projects will receive a small, ongoing amount of future MAGIC emissions. The Treasure metaverse will continue to receive at least 75% of the total staking rewards (excluding the two week periods during a liquidity bootstrapping event). Moreover, to incentivize long-term participation in one project rather than incentivise hopping between metaverses, additional rounds of boosted MAGIC emissions will be available for affiliated projects that meet the following criteria at least one month after the initial boost:
- $2mm+ marketplace volume per month
- staking rate above 50% for three consecutive months
- sustained or growing MAU.
The DAO may grant historically exemplary projects a permanently increased amount of emissions relative to other onboarded projects.
If this proposal passes, the first integration will be Life.
Seeds of Life NFTs were distributed for free to users who participated in the Arbitrum migration. Life requires users to have MAGIC to achieve full utility from their NFT (whitepaper forthcoming). Because of the huge overlap in communities and Life’s willingness to build its game structure around MAGIC liquidity, 50% of staking emissions should be diverted into Life for a two-week period during Q1 2022. After this, Life will continue receiving up to 10% of future staking emissions. Bridgeworld will receive at least 90% of emissions.
[EDIT] The proposed partner for integration in Q2CY22 is Smolverse (a dual allocation between Smol Brains and Smol Bodies with game theory dynamics to incentivize MAGIC staking).
Polling Period
The polling process begins now and will end at 07:00 UTC on 2 January. If quorum is reached, a Snapshot vote will be put up at 07:30 UTC on 2 January.
Submitted by John Parmesano - Treasure DAO Contributor
