Proposal Summary
This proposal seeks to implement a 5% royalty fee on all secondary market sales of GM NFTs on World of V. Based on historical data from the past year—where the GM NFT collection reached a trading volume of 293,000 VET—a 5% royalty would have generated approximately 14,650 VET. At current market rates, this equates to roughly 10,000 B3TR that would have been captured by the Treasury. This initiative is designed as a strategic economic alignment: converting external marketplace volume into organic buy pressure for the B3TR token.
Proposal Changes
· Royalty Activation: Implement a 5% royalty on GM NFT secondary sales.
· Open Market Buybacks: Establish a workflow where royalties (VET/VTHO) are used to purchase B3TR from the open market.
· Treasury Accumulation: Direct these purchased B3TR tokens to the DAO Treasury.
Motivation
While the current treasury receives significant weekly emissions, those tokens are part of the inflationary supply. This proposal introduces a different, healthier dynamic:
1. Market Pressure: By converting royalties into B3TR via DEXs, we create constant, organic buying pressure on the B3TR token, regardless of the amount.
2. Asset Productivity: Currently, GM NFT secondary trading happens in an isolated loop. This change ensures that the NFT collection “works” for the DAO’s native token.
3. Future-Proofing for Scalability: Historical data (showing peaks of 70,000 VET/month) reflects the potential of this stream. With upcoming features like Cosmic Climb, trading volume is expected to grow. Establishing this 5% royalty now ensures the infrastructure is ready to capture significant value as the ecosystem matures.
| Month | Trading Volume (vet) |
|---|---|
| 1 | 18385 |
| 2 | 11000 |
| 3 | 8081 |
| 4 | 112 |
| 5 | 221 |
| 6 | 45433 |
| 7 | 530 |
| 8 | 21030 |
| 9 | 15408 |
| 10 | 200 |
| 11 | 270 |
| 12 | 69975 |
| 13 | 41150 |
| 14 | 30250 |
| 15 | 30825 |
4. Symbolic Alignment: It reinforces the principle that all sub-ecosystems within VeBetterDAO should contribute to the circular economy of B3TR.
Detailed Specification
· The Loop: Sale on World of V → 5% Royalty Collection → Automated/Batch Swap to B3TR → Deposit to Treasury.
· Transparency: All buyback transactions will be on-chain, providing a transparent record of how the NFT market supports the token.
Requirements
· Collaboration: Coordination with the World of V team to update collection metadata.
· Execution: A simple smart contract to execute the market buybacks and transfers.
Implementation
· Step 1: Update GM NFT contract settings on World of V to enable the 5% fee.
· Step 2: Define a monthly or bi-weekly “Buyback/Deposit” event to consolidate funds and execute the market purchases.
Risk Analysis
· Quantitative Impact vs. Qualitative Value: We acknowledge that 10,000 B3TR/year (derived from the 5% royalty on the 293,000 VET annual volume) is a small percentage compared to weekly emissions. However, the importance lies in the mechanism: it is a net-positive buyback from the open market rather than a distribution of existing supply.
· Market Competitiveness: A 5% royalty is standard in the NFT industry and is generally accepted by the community when funds support the ecosystem’s longevity.
Conclusion
This is about economic discipline. It turns the GM NFT secondary market into a proactive participant in the B3TR economy. By approving this, the DAO votes for a more interconnected financial structure, ensuring that as our NFT collections grow in popularity, so does the strength of the B3TR token.