@taekwonkrypto’s video on PooledNFT.
Yeah something like this is great, and as a creator I would like to participate. However, I do question where does the funding for such activities comes from? Do we mint more HIFI to accomplish this? Do we tap into the Pawn Bot liquidity reserves?
I think that we should target a sustainable source of revenue for this initiative. There will probably be a fee capture mechanism on the HiFi lending platform and then based on enough usage, we vote to turn it on. Then setup a mechanism to split the captured funds between 3 wallets.
Wallet A - Incentives for users
Wallet B - Incentives for core team / unexpected events fund
Wallet C - Incentives for community
Wallet C should be relatively small in max size, 5-10 ETH and this is whats used to fund community incentives like above.
And then theres discussion about, “well, how do we split the fees between the three wallets?” and then we get into another discussion. Trying to preempt this, i’ll add my hot take to it, with reasoning below.
35% - Wallet A - Incentives for users
15% - Wallet B - Incentives for core team / unexpected events fund
50% - Wallet C - Incentives for community
Community initiatives has the smallest wallet of the three, so it fills up the fastest. Once its full, the money is split evenly between the two other two. Community initiatives are usually the cheapest method to gain new users and retain existing ones. The caveat is that they are usually also of the poorest quality since you dont really know what your going to end up with as a final result. I’ll refrain from shilling myself and my articles here, but I will use a fellow community member @taekwonkrypto as an example. He’s deep into the NFT space, actively in 30+ NFT discords, hes been a guest and cohost of many of them. He’s got reach and he knows the subject matter… and a youtuber… and oh yeah, hes an artist, a story teller and a one man army who’s built 5+ NFT comic books. Hes one of the guys we want to be spreading the good word about PooledNFTs and how they can benefit other NFT communities. And if they disagree with him, he’ll give them… i dunno… a judo chop to the neck i hope. TaeKwon is a good example of someone who has a body of work that we can see and judge on collectively if we wanted to engage his services.
Incentives for users should be self evident. Give them tokens for seeding the platform with liquidity. If we plan on being the #1 lending market on Ethereum, then we need to incentivize usage. The kind of liquidity we need is far beyond the scope of what our community can bring… unless we got several hundred dollar millionaires hanging around and we dont know it.
And finally, incentives for the team. They have a runway of ~1.7 years I think, but i’m sure I speak for others that it would bring me ease, knowing that they always had $200k they could tap into under emergency circumstances. Maybe there was an earthquake and half the core teams houses are destroyed. Getting them into a hotel for a few weeks until other arrangements could be made, would be a great use of these funds. Maybe Bored Ape Yacht Club says they want to use PooledNFT, but they really want to see an audit conducted by Hacken, and we see an $80k price tag attached to it. I think it makes sense to use the emergency money, as we have no promise that their community will use and/or adopt it… but the opportunity is too good to pass up and we need to take the risk.