TIP-04 Minting NFTs for User Acquisition

Gaarp

Summary

After the successful launch of our Marketplace, we are now ready to scale its use beyond the TreasureDAO ecosystem to attract wider scale adoption, this includes both community and NFT/Developer acquisition strategies. In order to achieve this, the TreasureDAO Council are seeking approval to inflate the supply of Legions and Treasures proportionately (retain current distribution %) to be used in these acquisition drives.

Rationale

Treasure has grown organically since creation and has now released a series of products that can be scaled for wider use. With migration and product testing for both the Genesis Mine and Marketplace behind us, we believe this is the ideal time to start our optimistic scaling goals, with multiple ideas ready for launch.

Successful implementation should see immediate growth in our community and increased traffic across the marketplace as well as the broader ecosystem. MAGIC from the Ecosystem Fund (which has already been approved by the DAO) may also be used for growth and used in collaboration with certain acquisition strategies we propose to implement (eg. Hackathon, grants).

We are immediately seeking approval to mint the below assets:

300 Common Legions (non-genesis)
1,000 Fractionalised Treasures

If approved, these mints would be proportionate to existing circulating supply of all assets, meaning inflation will be in direct proportion to the current scarcity of each asset and rarity as a % should remain the same.

Proposal (QUORUM REACHED)

Approve the mint of the requested assets so that we can release the first 2 acquisition drives with incentives utilised appropriately in line with each drive. The requested assets will be utilised for marketing initiatives for a period of 3 months on a common sense prevails basis.

Polling Period

The polling process begins now and will end at 05:00 UTC on 20/11/2021. Should quorum be reached, a Snapshot vote will be put up at 06:00 UTC on 20/11/2021.

Vironic

Gaarp What’s the dilution from this?

Treasure_Alex

It’s like working with building blocks: We build as very solid basement with 1) the migration to Arbitrum, 2) our transformation to the DAO and 3) the launch of our marketplace. Now let’s use this foundation and invite people for drinks in our new shiny living room and offer them some drinks (i.e. NFTs). Full support in this acquisition initiative!

Hildi

What are some examples of using these extra assets in a market campaign? I’m assuming give-aways but would love to see some concrete examples.

Treasure_JoshB

Hildi
Without giving exact details on each activation, we have two premium acquisition drives being developed where we will target between 2000-10,000 people per drive. Initiatives will be driven from Twitter with intent to grow Twitter exposure but also our discord.

Each activation will be directing people to the TreasureDAO discord of which winning participants would receive Treasure/Magic starter packs to participate in our ecosystem. This will be a small % of people who participated in the initiative.

For everyone who does not receive one of the prize packs, we would be interacting with purpose to inform them of what our ecosystem is about and why joining it is or such value. We believe that if correctly managed and communicated to, that similar to the hype we have felt ourselves as OGs that we can pass this on to new members. Creating a larger community of equally passionate people. Scaling community will be vital to the projects success.

In effect we are using the 3 key marketing principles of

Acquisition
conversion
retention

The two drives are diversely different, one focused directly at L1 NFT enthusiasts who we believe are looking for an L2 solution given the gas challenges on L1 and the second is a premium branding exercise of which we have created high quality assets that we believe will go viral due to their high quality. They were purpose built for this type of initiative

gamblingjpeg

Asset creation through no work. Against.

Marketing team hasn't earned that much value.

Treasure_JoshB

gamblingjpeg
By no work if you are referring to lack of action or communication from the marketing team, I agree.

We are building a communication plan that correlates to our road map with an intent to improve in these areas. These two first acquisition drives are what we consider to be the first active marketing pushes and the timing for this is strategic to our current positioning. In particular that we are confident that we have both the depth of products and tested the functionality of them. We are getting ready to release a series of milestones on the roadmap and believe that increased use from scaling is important.

I would love to understand more information behind your concerns here to ensure we are interpreting correctly and ensuring we put enough consideration to points being raised. All feedback welcome here frens

Hildi

Treasure_JoshB Thank you for the clarification Josh. I see some serious thought has gone into this and also understand you cannot yet list up the exact strategies and timings or risk frontrunning. Also good to hear these are separate from genesis legions.

The main remaining unknown then for me is how we can discourage people from immediately dumping their new NFT/magic. Retaining magic is already successfullly encouraged with the mines and LP, so I expect no issue there. But some sort of incentive may also be required for the new NFTs or they may get dumped. That consideration would probably be part of your retention strategy. An example could be: hold your new legion NFT long enough, and it will get genesis status or other increased utility. That way magic doesn’t need to get diluted.

I’m leaning to vote in favor. An active marketing strategy is a definite value-add for this already very strong DAO project.

Treasure_JoshB

A point to clarify. The proposed 300 common legions are Non Genesis Legions. Genesis legions are not being proposed to be minted here

Treasure_JoshB

Hildi
This point was actually raised internally and a really good point, there is always the risk of people flipping anything, and ultimately the responsibility lies on how we present as a community and how TreasureDao presents as a value proposition to the individuals who participate in these drives, and are among the lucky ones.
We are putting considerable thought into how to make the qualification process more engaging to avoid people just prize hunting and to attempt to get genuine enthusiasts. That being said, we will also be getting access to a much higher number of people who tried and missed, so we need to consider the direct risks of taking on initiatives like this, and the opportunity costs of not. I am personally confident that if we had a few thousand extra people coming through our discord and seeing what Treasure is all about, that our ability to convert and retain new community members will outweigh the risks of people dumping some of their prizes. If we limit the volume released at each time, we can also assume that if people did dump, that these assets would end up in strong community hands and if you zoom out and look at this on a longer time frame, we are going to need to scale in a lot of areas, including in game assets in order to be able to attract the volumes of players who we envision playing the game when launched. Everything will be handled with absolute care in our approach.

TheBeesKnees

I would like to see the nfts have a use in the ecosystem before we give them away. As has been said if there's no use they will likely just get dumped back into the marketplace and people will say thanks for the free money. Perhaps the plan here is to coincide this marketing push with the announcement of utility for the nfts? Otherwise, I think it's great.

Treasure_JoshB

TheBeesKnees
Agreed that utility for the current NFT's needs to be announced as soon as reasonably possible. Beyond the already announced macro use. We are working on a number of exciting use cases currently with some potential partners, and as soon as these are finalised we can share more specific details.

For now, Legion rarity is known to be used for mining efficiency and for in game use/access. With Treasures known to be used in consumable farming as well as one of the asset classes that drives our ecosystem.

I understand this is general, but until exact utility is confirmed, giving specifics would be misleading. I certainly understand your point of wanting to know utility first, but we also have a need to have multiple areas moving forward together with synergies so that when we release the next product, our community and use of said new products can reach their full potential.

Happy to give more detail if I havent provided sufficient scope here.

TheBeesKnees

Treasure_JoshB I completely agree that you can't announce anything until it's finalized. Making promises and then breaking them is so divisive in a community. My only point is that I don't think we should give anything away that doesn't have utility. They aren't even all that effective as PFPs. I am trying to look at this from the POV of someone brand new. New people don't know the team and they don't know the history of how incredible this team is. If they win one of these packs it's very likely they will stake their magic in the mine, and list their legions/treasures to get more magic to stake in the mine. They're going to want productive assets.

I think giving away the nfts is a great way to onboard new people, I just think it's a little early for that since they have no utility yet.

All of that said, I honestly just trust the team until proven otherwise and will likely back this initiative anyways as I think it's nitpicking a bit. Ultimately it's a numbers game. I just think the retention rate would be higher if we gave away things with utility. But even as it stands it's likely still a +EV initiative.

Treasure_JoshB

TheBeesKnees
I think we are almost saying the same thing in a round about way. What we are giving away needs to have known utility or how some people would view, known value. Right now legions have macro utility known for those who have been around long enough.

At time of writing this I am unable to advise any further utility beyond what is already announced, but as soon as more can be shared which is not necessarily far away, the this expectation of yours will be met. Some of what we are working on is not yet set in stone which is why I need to be careful of how much is shared, however, with that being said, we agree with this point in principle and will do everything we can to help ensure this is achieved at time we launch the initiatives. At this stage we have not committed to launching anything on a specific date, we are asking for approval here so that at the right time, we can move fast with maximum effect.

I know that is not a direct answer to the question, but I am also somewhat handcuffed to not making commitments or statements on some areas that are still being negotiated.

What can be confirmed is that the use of any such marketing assets would be used in the most timely and appropriate manner we can visualize and execute on. We have been very balanced in all actions thus far and intent to take this approach to everything we tackle moving forward as well

TheBeesKnees

Has there been any consideration to using magic the DAO already has to buy fractionalized treasure and common legions from the marketplace over time to be used as giveaways? I know that "sweeping the floor" is a fairly terrible use of dao funds but in this case since there's a purpose it might make sense?

Treasure_JoshB

TheBeesKnees
This Hasn’t been discussed previously and again the idea certainly has merit. With that being said, we are needing to scale the team immediately and step away from our self funded model as this isn’t Sustainable long term for the founders to keep financing each stage of the projects progression. I definitely see this being a possible solution in the future to be discussed in more detail. For now with ecofunds predominately going to building out the team and infrastructure my instincts here are that the time wouldn’t be now for this, but quite possibly in the future depending on how certain situations play out

yaozers3

I assumed this was a given already. I'm surprised a vote is needed.

Treasure_JoshB

yaozers3
As a DAO we will always put forward Macro requests for anything that could be materially impacting for the community. Appreciate the confidence and support on this though fren!

Treasure_JoshB

Vironic
According to my info, this would increase circulating supply as per below

Treasures from circa 72k to 73k
Legions from circa 4650 to 4950
*the above legion number includes riverman and numeraire

In terms of common (non genesis) legion inflation this will increase from 1265 to 1565

SteveyJay

I agree with this, however a couple of thoughts.. Potentially we want to reserve this minting for new holders by offering some type of whitelist opportunity for new users. This to obviously gain more new users and holders. Maybe ask that to be whitelisted you invite users or are active in the Discord chat with XP levels. This creates a little fomo and more activity, new users, etc. A compromise could be a 50% whitelist allocation (maybe 500 whitelist spaces).

Also, I think we should align a migration contract for existing Treasure cards on L1 with this.

What my idea does not address is retention which was discussed above.

Treasure_JoshB

SteveyJay
I agree 100% on the minting to new holders only. As unfair as it may sound, the idea here is for these to be unique new user acquisition drives, meaning existing treasure holders should not participate. The intention of the drive is to benefit the existing treasure community, so sharing more rewards to existing members is defeating to the strategy.

With the L1 treasure migration strategy, this is something we definitely are aware of, and we definitely do want all treasures on L2. We need to put thorough thought here (and we will).

With the first 2 acquisition drives we have been putting effort into, with some almost complete for launch, these would not lend themselves directly to the treasure migration strategy you have, although in writing this, I have thought of something I will propose to the team.

While it is not finalised, just a reminder that one of the concepts for Riverman was that he would be a ferrier across different metaverses, and it was an idea that rivermen holders could ferry treasures from L1 to L2 with rewards for their efforts. Please do not take this as a literal happening, just putting concept to the ideas that were originally floated and to reassure that getting treasures from L1 to L2 is certainly a priority.

Hildi

SteveyJay this is a very good point! Add a mechanism to make sure us degens don’t just slurp it up. It really needs to go to new unique users.

A risk is that some people will just create a new account on discord or Twitter to bypass the policy and qualify anyway.

@Treasure_JoshB No doubt you guys already considered this, but just going to mention a concrete measure you could take: you could target specific Discords with communities that are a potential match for Treasure. Similar to what was very successfully done with the n staking to get the n crowd in. If those communities have a rigid role structure then you could say “people with roles pink, blue and yellow in Discord X” are pre-whitelisted to participate in this competition to win a starter magic/legion pack”. You’ll create a lot of interest, attract committed users, and increase chatter in those Discords.