As we are starting our journey into the realm of VC funds, we are facing a challenge: working with a relatively small treasury compared to a traditional investment fund.
Hence, it is highly possible that the council choose to take smaller positions than what is available/offered by projects in their pre-seed/seed rounds for legitimate risk management or strategic reasons.
This proposal aims at giving the council more firepower to fill larger investments positions while also doing the following:
- Increase the DAO Vault
- Give holders new utility
- Zero dilution for the RevDis of existing holders
- Creating a marketing campaign to increase awareness about ETHLizards (and pump secondary sales)
Could be done anytime
No money is needed, only time and work
ETHLizards Eggs would be a new collection of NFTs. We can reuse the beautiful pre reveal lizard egg gif for this purpose.
They each represent a % of a vault, managed by the council, used to fully fill pre-seed/seed allocations when possible, at their discretion.
Every egg can be traded (yes, tradeable pre-seed positions!), or burned at anytime from the moment the first investment is even partially liquidated (not redeemable against the non invested capital).
Along the lifecycle of investments, the profits realized and ultimately the original capital, will flow into what will call here The Redeem Chest.
At anytime where the Redeem Chest value > 0 eggs can be burned in exchange of the % of the the chest corresponding to 1/(Total circulating supply of eggs)
ETHLizards Eggs collection of size S is created.
Every lizard would be automatically whitelisted to mint N=S/5250 eggs at a P price.
The unsold eggs can be then sold through a public mint at a P’ price.
A mint commission percentage C of the total amount raised from the mint will directly flow to the main DAO Vault.
A redeem commission C’ will be applied anytime an egg is burned on the value it represent, following the same rules as main investments profits (Team%, Concil%, RevDis%, Treasory%)
A commission C” on secondary sale of eggs, following the same rules as ETHLizards secondary sales
Example based on arbitrary parameters:
Collection Size: S=21800 ( N=4 per V2 lizard, 8 per Genesis)
Mint Price: P=P’=0.1 Ξ
Mint Commission: C=20%
Redeem Commission: C’=20%
Secondary Sales Commission C”=7.5%
Simplified model based on 20 investments to fully deplete the amount raised through the mint:
Total DAO Vault increase from the operation*: 436 + 9746 = 10182 Ξ
*Not including secondary sales of lizard eggs
Allocation reserved to eggs:
There are 2 cases:
- the total seed investment opportunity is larger than the position the Council wants to take for the main DAO. In that case, fill the allocation with funds from eggs
- The investment opportunity can be entirely filled by the position from the main DAO. Then, either we leave it to the discretion of the council, where they would be free to allocate 0 eth to the eggs, or we can include a hard baseline as long as their is money from the eggs to invest. For example 5 to 10%.
→ Please provide your opinion in the replies
Although in this form it is very similar to what the main DAO is doing, the legal aspects and consequences need to be thoroughly considered for this proposal to be actionable.
- User buys Ethlizards NFT. Investments allotments are provided from the DAO treasury. Profit distributions are provided by the DAO through revenue distribution.
- User buys Egglizards NFT. Investments allotments are provided from the second DAO treasury. Profit distributions are provided by the DAO through a burning/redeeming mechanism
So both collection should fold under the same legal regulations.
Can initiate a real hype around ETHLizards if marketed properly, further boosting secondary sales and ETHLizards floor. Can be done in conjunction of a future investment announcement or separately.