Increase Utility and Liquidity of Paladins DAO NFTs
Holding a Paladins DAO NFT is currently of limited utility to its active holders.
Lack of liquidity: If someone becomes inactive, they don’t usually sell their NFT; they simply go inactive. I would estimate that of the original 100 holders, probably 40 of them are active in Web3 still, and probably about 15 of them are active in the DAO Telegram. It’s difficult to get a lot done with a limited group.
Governance gap between voters and contributors: Although each core contributing member holds a DAO NFT, there’s a gap between the voting power of someone who contributes every day versus someone who simply holds the NFT. This gap will continue to widen every day because there’s no mechanic to update voting power and incentives according to how much work you put in.
There are other reasons, like the difficulty in measuring ROI on most treasury spends and the even split within the DAO on good expenditures of funds. About half of the DAO believes in asset accrual, while the other half is against it.
However, I do believe that most of the DAO was able to achieve a good deal of utility from their initial purchases. For an average purchase price of 0.24 ETH (21.8779 / 90) - about $500, this is how members in the DAO benefited over the past year.
The Paladins Vanguard team has been working for 5 months on the Cyberdins mint, which is a DN404 PFP mint largely created to solve a lot of the liquidity problems in many collections. DN404 and ERC404 collections act as fungible token collections, where if you hold a certain amount of the token it becomes an NFT, but you can sell fractions of the token. Projects that have used this to success are Sofaverse, Friendtech (to some extent), and Pandora and Asterix (working with us on this mint).
The Cyberdins are the first PFP NFT collection that Paladins DAO is releasing since the original genesis 100 NFTs. The community will represent the best of what Web3 gaming has to offer, which is true competitive gaming spirit, as well as aligning with Web3 games that are building for the long term.
The Cyberdins will be launching at the end of August, along with partnerships with many games such as AI Arena, Shrapnel, and Nyan Heroes. The collection will be a 404 collection, meaning that the community will have the optionality of rerolling until they find a Cyberdin that perfectly suits their aesthetic.
Equipped with their ideal Cyberdin, the community can compete on the Cyberseum leaderboard to become the ultimate Paladin.
We propose to wind down the current DAO structure and convert the treasury into the Cyberdin $CYBER 404 tokens that will then be airdropped to every holder of Paladins DAO.
Holders can reach out to opt-out of this trade and instead receive 0.14 ETH of value and 2 $CYBER airdropped to their wallet. Or if the proposal passes, they will receive 7 $CYBER NFTs which would be 0.25 ETH worth of $CYBER (including a 200 NFT airdrop to the 100 holders).