LIP-5 Establish Genesis V1 Ethlizard NFT Utility

Proposal #: 5

Title: LIP-5 Establish Genesis V1 Ethlizard NFT Utility
Author: KakashiSama
Date Created: 12th April 2022
This vote is to implement the utility of Genesis V1 Ethlizard NFTs as detailed below:

ABSTRACT
After the LizardDAO was formed with V2 Ethlizard NFTs serving as the governance token, Genesis V1 (Gen V1) Ethlizard NFT holders were told by the Ethlizard team that their NFT would gain additional utility at some point in the future, with no details or promises being made.

This document proposes a change to include the Genesis V1 Ethlizard NFTs into the LizardDAO as a 1 to 1 equal to the V2 Ethlizards NFT in regards to receiving equal voting power and staking benefits, as well as the same DAO royalty agreements and percent. (Staking reward multipliers are part of voting option)

Relevant Information:

Genesis V1 Ethlizard
Ethlizards Genesis V1 was created as a meme NFT collection to be distributed among friends and OG degens of the Illuvium community by 0xDrs. It was a free mint given out and the Lizard Lounge discord server was formed for these degens to connect and share alpha. Currently Genesis Ethlizards collection has 0% royalty, $0 revenue and 0 in treasury. The Ethlizard team has only recently acquired the rights to this collection.

Ethlizard Genesis V1 Holder Perks:
• Pre-V2 mint, holders received 2 free mints of Ethlizards V2 and 3 WL spots for the mint [additionally there were 3 extra WL spots available for early members to discord for a maximum possible 8 V2 NFTs to a single wallet]
• Have special discord role for access to a few closed Iguana (Gen V1) only channels on discord
• Collector/Flex value (speculative)

Genesis V1 holders have retained access to Lizard Lounge discord and continue to be an active, loyal and valuable part of the community. Gen V1 is considered an important part of the Ethlizard history and some utility is due to holders.

Presently the 100 Genesis V1 NFT has limited functionality and has no smart contract permissions within the LizardDAO, which currently consists of 5050 V2 Ethlizard NFTs. The LizardDAO is contractually restricted to V2 Ethlizard NFT holders, with the token being granted smart contract permissions to participate in the DAO (voting, staking or otherwise).

V2 Ethlizard
V2 Ethlizards was not planned at the time of Genesis creation. Ethlizards V2 is a somewhat separate collection created by the current Ethlizards team. It was created to become a larger, functional DAO project. The V2 Ethlizards 5050 tokens are contractually structured to have permissions within the DAO (including membership in the DAO by owning a V2 Ethlizard NFT token, voting, staking, future smart contract functionality and other DAO benefits). 7.5% Royalty goes to the vault and team. Currently has vault treasury of approximately 300ETH.

Recently has the Ethlizards team acquired the rights to the Gen V1 collection. There is no “automatic” inclusion possible, since from the beginning the DAO was developed for V2 holders only at a smart contract level. For Gen v1 to be included, this LIP-5 DAO proposal needs to be ratified and voted on according to the functional governance process of the DAO.

This proposal advocates for Ethlizard Genesis V1 NFTs to be integrated into the Ethlizard V2 collection, essentially expanding it to 5150 NFT merged collection where 1 liz = 1 liz. This proposal would allow the Gen V1 NFT to receive equal voting, staking, future utility and rewards; Additionally it would share the same agreements with the DAO and contribute to the DAO treasury in an equal manner as V2 NFTs. For NFT marketplaces, they would still be listed as two separate collections for the sake of simplicity (this could be changed later).

For clarity, the sole difference would be that Genesis V1 NFT holders would retain their exclusive Iguana discord role to the closed iguana-only channels.

Additional staking multipliers are also being voted on in this proposal.

Clarification on Staking Multipliers
The option of 2x or 3x multiplier being presented in this vote would apply to staking rewards only (i.e. Gen V1 holders would receive a larger portion of 2x or 3x of the staking pool total rewards than their V2 counterparts). In all other aspects, voting, future utility, airdrops, smart contract implementations, etc. the two Ethlizard NFTs of Gen V1 and V2 would be treated equally… If the vote ends in “1 to 1 integration with 1x staking reward,” then NO multiplier would be added (i.e. 100% equality).

Main changes

This proposal will seek to include the Ethlizard Genesis V1 NFTs as 1 to 1 equivalents to V2 Ethlizards NFTs in regards of DAO membership and smart contract functionality.

Genesis V1 NFTs would be integrated into the snapshot voting system to include voting privileges, 1 vote per NFT, same as the current V2 NFTs.

Genesis V1 NFTs would be integrated into the staking contracts to include equal staking priviledges and share per NFT of staking rewards, same as the current V2 NFTs. (If a vote result including a 2x or 3x multiplier passes, then this functionality for Gen V1 would carry an additional 2x or 3x staking weight.)

The royalty percent of Gen V1 on all NFT marketplaces would be changed to 7.5% to match the same royalty percentage as V2s. Any royalties earned will be sent to the LizardDAO (V2) treasury and follow the exact same protocol as V2 royalties.

Any future utility or benefits would be shared equally between the Gen V1 / V2 Ethlizard NFTs as a merged collection. This would include any future changes to voting, staking or other DAO and smart contract agreements.

All Gen V1 / V2 Ethlizard NFTs would henceforth be treated equal in the eyes of the DAO (aside from any ratified differences specifically defined in this proposal).

Implementation
The Ethlizards team would be responsible for implementing this change exactly as it would be written and agreed upon in the FINAL version of this proposal (that is voted on snapshot and labeled as FINAL proposal), updating the community on its progress and honoring the 1 to 1 Gen V1/V2 NFT equivalency in all future LizardDAO policies and proposals (with the exceptions of the Iguana discord role and any potential staking multiplier if approved in this proposal’s vote). The time and cost would be minimal and covered by the Ethlizard team. It would cost an estimated 2-3 eth to create the frontend bridge, deploy and create the 2 smart contracts. The timeline for this change will be integrated into the existing LizardDAO road map, with respect to any current projects or tasks that may command a higher priority or specific coordination (staking contracts, etc).

RATIONALE
As the LizardDAO was formed during V2 mint, the team did not own the rights, nor could they include the Genesis V1 holders at that time. This proposal is an attempt to rectify that in a way that also respects the rights and value of the V2 NFT holders. This proposal was written in a way to make the best effort to remove any of the author’s opinion or preference in favor of a DAO FIRST approach. This proposal was drafted to best suggest a potential fair middle-ground, bridge any gap that has been created by any debates over Gen V1 utility and move the DAO forward as one united, equal and dedicated unit.

This utility added to the Genesis V1 NFT can potentially increase its speculative market value in addition to the newly added voting and staking benefits.
V2 holders and subsequently the entire DAO will gain long-term value with a united collection and steps taken towards a unified DAO community.

Should the V2 LizardDAO integrate Ethlizard Genesis V1 NFTs in voting, staking and future shared utility?

Voting options:
A. No, we should not integrate them.
B. Yes, let’s integrate them as a 1 to 1 equivalent with 1x staking reward
C. Yes, let’s integrate them as a 1 to 1 equivalent with 2x staking reward
D. Yes, let’s integrate them as a 1 to 1 equivalent with 3x staking reward

Voting Calculation
Unless option A [No] is over 50%, then the [Yes…] option with the highest % of votes will be accepted between options B, C and D.

2 Likes

As an individual who was AFK when v1 was claimed and purchased my v2 mints, it is my perspective that a V1 provided 2 freely minted v2s. This is already fantastic utility. They have their own exclusive channel and feel separate from v2 (also why do we need additional secret rooms?).

I fear that if v1s receive 2x staking reward or higher that this will steal market action from V2, making v1s the preferred assets for high value purchasers. This will not be ideal for any who hold v2.

I am not against other social or promotional utilities for v1 in the future that may give them value/access as promotional collector’s items; however, I firmly am against integrating them into LizardDAO 1 to 1 as this dilutes v2 and make all v2 less desirable. All v1 holders could have freely minted 2 v2s, and any further bonuses is excessive.

6 Likes

I know its not ideal as you said in the gov channel but al the v1 holders, who collectively hold many lizards, will probably vote options B-D and potentially have the weight to make Option A voters meaningless. In this worst case scenario option D could win because for reasons outlined before. I do think voting for what you want is fine, and I sincerely think v1 should be included but preferably at 1x and 2x at most. 3x feels egregious to me but if the vote goes on as scheduled, it is important to be aware of the reality of these voting mechanics to avoid surprises

5 Likes

I recommend that everyone who votes for A check back to change their vote before the results are finalized (only if necessary to protect the value of v2).

This is not ideal, but necessary if it is close.

I love all lizards, but I would not like to see such transparent siphoning of value to those at the top of an already exclusive club.

9 Likes

It is worth noting that all votes can be changed for the entire duration of the voting period. If the vote is still open, at any point you can adjust your vote from your preferred option to you second choice, etc.

2 Likes

Link to LIP-5 on snapshot voting: Snapshot

Ethlizard LIP-5 Gen V1 Integration Results
Over 33% of unique wallets voted using more than 53% of the total Ethlizard token supply.

After much discussion, debate and reconciliation LIP-5 has passed with option C. Yes, let’s integrate them as a 1 to 1 equivalent with 2x staking reward.
This will could be called the “Great Gen V1 Compromise,” where the community banded together to find a middle-ground on a complex issue. As a merged collection, Gen V1 and V2 Ethlizards will move forward together united as members the DAO.

Changes
With the approved integration, Gen V1 Ethlizard NFTs will now:
• Be granted smart contract permissions equal to V2 NFTs and will share all of the same future utility, airdrops and other upgrades as V2 NFTs.
• Have 1 to 1 equal voting rights; the same as V2 Ethlizard NFTs
• Will have staking permissions with rewards calculated at a 2x multiplier as compared to V2 NFTs (multiplier only applies to that SINGLE Gen V1 NFT)
• NFT marketplace royalties will be changed to 7.5% with proceed going to the DAO (same as V2)
• All Gen V1 / V2 Ethlizard NFTs would henceforth be treated as equals in the eyes of the DAO (with the only exceptions being that of the staking 2x reward and the Iguana discord role / channels)
• The actual integration work, costs, and timeline to implement these changes will be handled by the Ethlizard team.