Hey all
Prefacing by saying I’ve been both a FLOOR and NFTX holder for many years now. Long enough to see the buzzing community in NFTX with projects like gem and sudoswap coming out of it. Before doing the initial bonding event for floor I even did a call w the team giving some advice, and am probably the largest non-team market buyer and locker of floor tokens to participate in the floor wars.
Overall the proposal does a great job in setting the future for things like team motivation, dev talent, product vision, marketing, etc. Its clear that although we’ve retained good dev talent, we haven’t done so hot on the marketing front and merit circle can help solve that.
But I feel we’ve completely ignored token holder value and have only focused on a good outcome for building product and team value. This comes at an unreasonable cost to both NFTX and FLOOR holders, when the exact same outcome can be reached without unhealthy dilution and tokenomics changes.
Some facts:
- The NFTX treasury is $20M (DeBank | The Real User Based Web3 Community)
- The Floor treasury is $11M (DeBank | The Real User Based Web3 Community)
- Token holders (NFTX and FLOOR) have over $30M of hard assets (NFTs, ETH, USDC) backing their tokens
- Every NFTX token is currently backed by $55 according to marx above
- Every FLOOR token is currently backed by over $8 (including dilution from flayer… which we no longer will own?). Can share a spreadsheet here if needed.
Now, if this proposal were to pass:
- NFTX and FLOOR holders would have to share 50% of the supply of newToken. The proposal says 2:1 NFTX:FLOOR
- NFTX holders would end up with 33% of the total supply of the new token. The new treasury would now be $31M and NFTX holders would only have $10.2M of assets now backing their piece of the pie… down from the current $20M.
- This is an instant destruction of 50% of the treasury value per nftx and completely unfair
- The other $10M ends up with team, merit circle, floor holders, new dao emission recipients, etc.
- This could be even worse, as gaus mentioned in discord that the new structure would mean the new token has no backing at all.
Just based on this alone, I don’t think its fair to put this proposal to snapshot - we need to get the exact tokenomics down before voting, and we can’t sacrifice that much backing value to try this experiment. It’s a yolo with the entire treasury.
Some options for how to make this proposal better, but still get the same end result:
- Each of merit circle, floor, and nftx co-fund a new token with a reasonable spend. Something like $300k per dao. Launch a first product, see how it goes, and keep the same tokenomics. 50% to the communities (nftx, floor, mc). This would meet the budget requirements, have equal amounts of money on the line from all projects, sacrifice very little backing, and deliver a fat new airdrop to every holder involved.
- If we are forced to donate the treasury to this new project, let everyone choose their own path so nobody is left frustrated. Those that don’t want to lose/destroy the treasury backing can rage quit, and those that are cool with the tradeoffs can migrate to project new wind. This should go for both nftx and floor. Floor did this going into floor v2 and it went fine, there has been no fud or frustration since.
Some additional takes / questions:
- Why is merit circle not providing any money but getting a large piece of the pie. They also have a large treasury and can put some skin in the game.
- What happens to the floor wars? Many have bought and locked expecting that to go on
- The floor dao funded flayer expecting to own 100% of it, after this they may end up with less than 25% of it, are they cool with that?
- In both cases (floor and nftx) large mints / allocations were just granted to contributors in recent votes. Will those get clawed back given that “current contributors” now get 20% of new wind?
- NFTX holds a large amount of the FLOOR supply, coupled with the FLOOR team votes basically anything can get forced through governance there. Seems unfair / conflict of interest for both teams to be participating in these votes, whats the plan for that?
- Is this considered a change that needs 70% passing in the nftx dao?
(edit: fixed some numbers)