Proposal to Create a PooledNFT “NFT” Collection

[Hollywood41]

Proposal to Transition from Pawn Bots to PooledNFT “NFT”

Summary (TL;DR): This proposal seeks to transition from Pawn Bots to PooledNFT “NFT” to address the existential crisis that Pawn Bots is facing due to being a self-referential project. The PooledNFT “NFT” will create a funnel into the ecosystem and demonstrate the benefits of the Pooled NFT tool for other NFT projects. Additionally, the proposal suggests the creation of a DAO within the NFT community as a second layer of defense to further protect the project from being considered a security. Existing collectors will be able to redeem pieces from the new collection based on their current Pawn Bot’s rarity ranking.

Background: There have been has express concerns about Pawn Bots could potentially be considered a security due to it being a self-referential project without a higher purpose.

To address this concern, this proposal suggests transitioning from Pawn Bots to PooledNFT “NFT”. This will create a funnel into the ecosystem and demonstrate the benefits of the Pooled NFT tool for other NFT projects;
giving it a higher purpose.

Proposal: The proposal suggests creating a PooledNFT “NFT” collection with a size between 8888 to 10,000 NFTs. This will help build awareness of the Pooled NFT tool, which is the catalyst for generating ERC-20 opportunities for NFT projects. The PooledNFT “NFT” will also serve as a funnel into the ecosystem, creating a primary use case for the project beyond borrowing against the subject NFT as collateral.

To further protect the project from being considered a security, the proposal suggests creating a DAO within the NFT community as a second layer of defense.

This will demonstrate that the project has a genuine decentralized entity from the start and is genuinely not a security. The DAO structure can follow the same framework used for the Hifi DAO, and only votes from PooledNFT “NFT” holders who will receive the 1-to-1 swap for the new NFT collection to be considered.

Existing collectors will be able to redeem pieces from the new decentralized higher purpose collection based on their current Pawn Bot’s rarity ranking.

Collectors who participated in burning Pawn Bots in exchange for $BURN token will be credited exactly one PooledNFT “NFT” for each Pawn Bot that was burned. This explicitly rewards those who showed up and actively participated with Pawn Bots.

Participation in the new collection is optional, and collectors may choose to keep their Pawn Bots or some portion of what they’ve collected.

Furthermore, the proposal suggests showing other NFT projects how to create their own DAO and fractionalize their NFTs into ERC-20s for governance and collateralizing to borrow.

This can be done through demonstrating how the PooledNFT tool was used to expand the PooledNFT “NFT” collection and how projects can make money through liquidity pool pairing in a Uniswap liquidity pool to survive, which can replace royalties and serve as a new source of revenue for NFT projects.

Requirements: To implement this proposal, the team will need to create the PooledNFT “NFT” collection, decide on the pairing for the Uniswap liquidity pool, and create the DAO within the NFT community as a second layer of defense.

KPIs: The success of this proposal can be measured by the adoption and growth of the PooledNFT “NFT” collection, the increase in liquidity in the Uniswap liquidity pool, and the number of other NFT projects that are inspired to use the PooledNFT tool to fractionalize their NFTs.

Conclusion: This proposal seeks to address the existential crisis that Pawn Bots is facing by transitioning to PooledNFT "NFT

[Hollywood41]

• The excess tokens from the PooledNFT “NFT” collection will be used for liquidity in the Uniswap liquidity pool.

• To further protect the project from being considered a security, the proposal suggests creating a DAO within the NFT community as a second layer of defense. This will demonstrate that the project has a genuine decentralized entity and is not a security. The DAO structure can follow the same framework used for the Hifi DAO, and only votes from PooledNFT “NFT” holders who will receive the 1-to-1 swap for the new NFT collection should be considered.

** The thing about restarting this is that we can be more fully decentralized, because we had a running start with the other collection, so OpenSea actually did us a favor.

• The proposal suggests showing other NFT projects how to create their own DAO and fractionalize their NFTs into ERC-20s for governance and collateralizing to borrow. This can be done through demonstrating how the PooledNFT tool was used to expand the PooledNFT “NFT” collection and how projects can make money through liquidity pool pairing in a Uniswap liquidity pool, which can replace royalties and serve as a new source of revenue for NFT projects.

• It is important to note that the rarity ranking of the Pawn Bots NFTs will be respected in the new PooledNFT “NFT” collection. Existing collectors will use their Pawn Bots NFT to redeem pieces from the new collection, and the new collection will be distributed based on rarity ranking, meaning whatever your current Pawn Bot has will be used to redeem the item in the new collection of equal rarity ranking.

Conclusion:

This adaptive proposal seeks to transition from Pawn Bots to PooledNFT “NFT” to address the existential crisis that Pawn Bots is facing by being a self-referential project without a higher purpose. The PooledNFT “NFT” will create a funnel into the ecosystem, demonstrate the benefits of the Pooled NFT tool for other NFT projects, and provide a primary use case for the project beyond borrowing against it. Additionally, the proposal suggests creating a DAO within the NFT community as a second layer of defense and showing other NFT projects how to create their own DAO and fractionalize their NFTs into ERC-20s. The success of this proposal can be measured by the adoption and growth of the PooledNFT “NFT” collection, the increase in liquidity in the Uniswap liquidity pool, and the creation of a decentralized entity through the DAO. We encourage the community to vote and approve this proposal so we can move forward with implementation.

** The big common good is basically saving NFT projects with creative restructuring, and this is basically a public good, and even the Borrowing is a public good because it allows projects to get liquidity
& capital to re-invest.**

[Hollywood41]

Revenue allocation:

• All revenue generated will be reinvested into the compounding liquidity pool.
• A portion of the fee will support HiFi Labs as one of the vendors maintaining the project with dedicated staff.
• Dedicated staff will have KPIs that they need to maintain.

Decision-making process:

• HiFi Labs team will delegate small level decisions.
• A sub-dao can report back to the community to mix together hifi lab and dao members.
• Weekly meetings will address little issues that do not require voting.

Risk management:

• Contingency plans will be in place to address potential setbacks, through open communication between PooledNFT “NFT”
  DAO committee members and Labs Team.

Marketing strategy:

• Build awareness and call people to action using the Pooled NFT tool as the front door funnel for the HiFi ecosystem.
• Attract new users to support the PooledNFT tool through education.
• Teach other NFT projects how to fractionalize their NFTs into ERC-20s and reinvest their capital.
• Use the Pooled NFT tool as a catalyst for generating TVL for the HiFi DAO.

Scalability:

• The project will scale through the compounding liquidity pool.
• Take on new projects and help them compound, which will serve as a catalyst for the TVL for the HiFi DAO token to compound exponentially.
• HiFi protocol will be an over encompassing canopy on top of all other projects.

[Hollywood41]

Summary:

• The addition of PooledNFT “NFT” and respective erc-20 pool tokens as collateral options is expected to have a positive impact on the overall liquidity on Hifi.Finance by attracting new users and projects to the platform.
• The potential risks associated with using PooledNFT “NFT” and respective erc-20 pool tokens as collateral are related to their value and stability. The project will mitigate these risks by implementing a system to ensure accurate and stable valuation of these assets.

Background:

• PooledNFT “NFT” is a new NFT collection proposed as a transition from Pawn Bots, while respective erc-20 pool tokens are tokens created through the PooledNFT tool for fractionalizing NFTs.
• The developers of PooledNFT “NFT” are members of the Hi-Fi Labs team, while the PooledNFT tool is a project by Hi-Fi Finance.
• The popularity of Pawn Bots and BOTSp was primarily driven by short-term hype, and they are no longer available on OpenSea & are here being proposed to be replaced by the proposed PooledNFT “NFT” and respective erc-20 pool tokens.

Problem:

• Examples of other digital assets integrated as collateral options on Hifi.Finance or similar platforms include ETH, WBTC, and USDC. These integrations have had a positive impact on the respective assets and platforms by increasing liquidity and usage.

Solution:

• The value of PooledNFT “NFT” and respective erc-20 pool tokens when used as collateral will be determined based on their market value and rarity ranking, which will be ensured by implementing a system for accurate and stable valuation.
• The introduction of PooledNFT “NFT” and respective erc-20 pool tokens as collateral options is not expected to affect the current users of Hifi.Finance, and no changes will be required in the platform’s existing infrastructure.

Requirements:

• The expected timeline for the development and deployment of the required smart contract is approximately 3-4 weeks, and the resources needed will primarily be the Hi-Fi Labs team and external auditors for security and reliability.
• There are no known legal or regulatory considerations that need to be addressed before PooledNFT “NFT” and respective erc-20 pool tokens can be used as collateral on Hifi.Finance.

KPIs:

• The success of this proposal will be measured through accurate and transparent metrics, such as TVL, usage, and liquidity.
• Qualitative factors, such as user satisfaction and market perception, will also be taken into account when evaluating the success of this proposal.

Conclusion:

• In the event that this proposal does not achieve the desired results or faces unforeseen challenges, contingency plans will be in place to address potential issues and ensure the ongoing stability of Hifi.Finance. These plans may include adjustments to the valuation system, further development of the PooledNFT tool, or exploration of alternative collateral options.

[jaydubb.eth]

Full respect on the idea and detail provided.
Others may feel differently but I feel we need to understand the lessons learned and planned path forward from Hifi Labs before we can give a proposal such as this full consideration.

[Hollywood41]

Yeah, your logic makes sense. However, on the assumption that the reason will not be communicated by OS, we will need a replacement & utilizing what we learned we can attempt a do-over. We are going to end up spending.a fortune in gas fees. I already am, via removing BOTSp from PooledNFT. Your logic makes sense, I just don’t see OS telling us.

[kellypr]

I support this proposal, very well explained.

[jaydubb.eth]

My thinking isn’t related to OS as I agree that we won’t get anything further on that end. To provide context towards my thinking as to why we probably can’t give new proposals genuine consideration just yet, lets take the ‘do over as an example’.
It has been indicated the team are working on a new collection and there were a comment on the painstaking task of doing each pixel. The team is probably well advanced on this and to stop that and work on a brand new collection with new images, would slow things down considerably. I just not sure it is wise to scrap the existing work when we don’t even know what it is?

[Mainbrain]

Agree with jaydubbs sentiment. And to add my own commentary, I think you’ll find it hard to get people excited about a logo. That’s why Pepsi and Bud Light NFTs are not variations on logos, but something completely new and original.

[Harvs]

Great idea Hollywood41, I love the hard work you put in behind the scene, creating new ideas. The team communicated that PooledNFT was going to be a public good, so I was wondering how would a Hifi Governance vote initiate your proposal?

[Mainbrain]

In general, these things go

Initiative around an idea on the forum
Proposal, streamlined version of the initiative
Snapshot vote

[Josue]

I am impressed with the amount of work/time you have put into this proposal. It is detailed and well explained.

I got few questions to keep the conversation going and expand on the proposal.

Is there a specific timeline or sequence of steps you intend to follow for the transition?

What strategies do we intend to deploy to educate both existing users and the wider NFT community about this transition, the functionalities of PooledNFT, and the operations of the DAO?

Could you explain the rationale behind the proposed collection size of 8888 to 10,000 NFTs? What considerations led us to this figure?

Could you expound on the anticipated structure of the DAO? What mechanisms will be put in place for decision-making and governance within this DAO?

What strategies are we (as community/DAO/team) considering to incentivize Pawn Bots collectors to engage with the PooledNFT “NFT” collection? Similarly, what will we do to attract new users?

What approach do you plan (have in mind) to adopt in demonstrating to other NFT projects how to create their DAO and fractionalize their NFTs?

[Hollywood41]

Hi Josue, in response (spit-balling some ideas):

1. Is there a specific timeline or sequence of steps you intend to follow for the transition?

• Maybe aim to begin the transition next week(?), ensuring an aggressively smooth and timely process.
• The talented HiFi Labs team can lead the transition, leveraging their expertise to ensure reliability and applying valuable lessons learned.

2. What strategies do we intend to deploy to educate both existing users and the wider NFT community about this transition, the functionalities of PooledNFT, and the operations of the DAO?

• Strategy could involve various initiatives, including educational video contests where users create content to explain the transition and showcase the functionalities of PooledNFT V2.
• Actively engage on platforms like TikTok, YouTube, and Instagram to reach a wider audience and hold social media campaigns and contests.
• Informative blog posts, user-friendly tutorials, and active community outreach programs will further educate users about the transition and the DAO’s operations.
• Highlight the story of how we brought our NFT community back to life and demonstrate the value of the PooledNFT tool for projects.

3. Could you explain the rationale behind the proposed collection size of 8888 to 10,000 NFTs? What considerations led us to this figure?

• Goal is to have enough DAO/HiFi-managed NFTs in circulation to use as collateral for fueling a liquidity pool and generating revenue.
• The proposed collection size is negotiable – though goal is to ensure ongoing liquidity of “P” tokens in the protocol and allows this project and other projects to generate fees from liquidity pool transactions.
• By inflating the circulation slightly while maintaining ownership of said “newly added” tokens within the DAO/HiFi Labs Team management, we can create a sustainable revenue stream to support the project’s growth and development.

4. Could you expound on the anticipated structure of the DAO? What mechanisms will be put in place for decision-making and governance within this DAO?

• Proposed DAO structure maybe follows the successful framework of the existing Hifi DAO!?
• Decision-making and governance will involve votes from PooledNFT “NFT” holders, close collaboration with the HiFi Labs team, and the use of Snapshot for secure voting and to prevent bad actor votes.
• The DAO will promote transparency and community involvement in shaping the future of the project.

5. What strategies are we (as community/DAO/team) considering to incentivize Pawn Bots collectors to engage with the PooledNFT “NFT” collection? Similarly, what will we do to attract new users?

• Exclusive benefits such as priority access and matched rarity privileges await existing Pawn Bots collectors within the PooledNFT “NFT” collection and the DAO.
• Offer attractive rewards, recognition within the “discord” community, and enhanced benefits possibly for utilizing lending instruments (tbd).
• Engaging events at NFT gatherings “NFT LA” would encourage active participation and awareness among both existing and new users.
• By focusing on showcasing the unique features and possibilities of the PooledNFT “NFT” collection, we can aim to attract new users and expand community involvement.

6. What approach do you plan (have in mind) to adopt in demonstrating to other NFT projects how to create their DAO and fractionalize their NFTs?

• An approach that is educational and supportive, providing step-by-step guides and sharing best practices.
• Presenting case studies (beginning w/ us) that demonstrate the process of creating a DAO and fractionalizing NFTs using the Pooled NFT tool in addition to generating ongoing revenue via liquidity pool revenue from fees.
• Collaboration with other NFT projects, industry partners, and hosting educational events will help disseminate knowledge and foster a supportive community.
• Focus on expanding awareness and involvement within the NFT ecosystem, offering solutions for revenue generation and growth.

Ultimately, center everything around adding additional NFTs to circulation, using them as collateral to generate fees within a liquidity pool, and demonstrating to other projects how they can revive their communities and sustain their growth.

p.s. If team has enough existing NFT’s no need to add more into circulation. Don’t want to dilute existing holders of PawnBots, unless adding the 1000+_ new NFT’s is genuinely used in the pool. Possibly team already has enough – though maybe the new ones are owned by the DAO and the existing ones owned by the team are kept owned by the “Labs Team”

[Hollywood41]

In summary, the key points for suggestion/ consideration are:

• Adding additional NFTs to circulation to fuel the liquidity pool and generate fees.
• Designating the newly added tokens to be owned by the DAO as a means for the DAO to earn revenue.
• Ensuring ongoing liquidity of “P” tokens in the protocol through the use of collateral from the DAO-owned NFTs.
• Demonstrating how the project brought the NFT community back to life and showing the value of the PooledNFT tool for revenue generation and growth.
• Providing educational resources and outreach programs to educate existing users and the wider NFT community about the transition and the functionalities of PooledNFT and the DAO.
• Incentivizing engagement from Pawn Bots collectors and attracting new users through exclusive benefits, rewards, events, and showcasing the unique features of the PooledNFT collection.
• Adopting an approach of collaboration, education, and support to demonstrate to other NFT projects how to create their DAO and fractionalize their NFTs using the Pooled NFT tool.