Proposal Name: The Sweep: For Accelerating Web3 Gaming Adoption
Proposal Category: Core: Ecosystem Fund Allocation
Abstract
It costs $9 million to sweep 100 Bored Apes and 200 Mutants. I propose we buy them, hold them in the treasury, and allow game companies to submit proposals requesting them in addition to or in lieu of Apecoin for game prizes and rewards.
Author Description
I’m an engineer by trade and I trade digital collectibles as a hobby. I’ve been a member of the Apecoin DAO since its inception and a member of the Bored Ape Yacht Club since May 2021. I’ve spent 6 years as a product design engineer and I hold 4 design patents.
Motivation
The intent is to ultimately increase the demand for Apecoin. People need incentives to buy Apecoin and participate in the ecosystem. My idea is to create an Apecoin DAO holding of Bored Ape NFTs. These NFTs can be requested through AIP proposals as an option for prizes in Apecoin games for example. They would have to be approved for grants in future AIP proposals as a community. This way, we are not limited to granting NFTs to existing games at the time of this AIP submission.
The Apecoin DAO also gains $9 million worth of assets that are not Apecoin. This means we would now have $9 million in assets to grant through AIPs that do not require the sale of Apecoin to execute. That is significant and helps to offset the effect of the initial swap to ETH for the NFT purchase over time.
Rationale
One of the biggest guiding principles of the APE community is to drive culture forward into the metaverse. Bored Apes have stood at the forefront of driving culture forward in Web3. I think a DAO holding of Bored Apes allows us to offer an asset, through grants, that will motivate participation in the Apecoin ecosystem. 300 Apes as prizes creates a significant incentive to purchase Apecoin and compete in Web3 games.
Benefit to ApeCoin Ecosystem
I’d love it if we were in an environment in which there were multiple play-to-earn games with significant prize pools creating Apecoin demand for their mints (assuming powered by Apecoin / Apecoin only mints). I find it hard to think of a better use for $9 million dollars in DAO funds than incentivising new entrants to buy Apecoin to compete for valuable prizes (Ape NFTs).
$9 million dollars was arrived upon after calculating the rough cost to purchase 100 Bored Apes and 200 Mutants. The cost of these NFTs is highly volatile so this AIP specifies a dollar amount to spend rather than a number of NFTs to purchase. The number of Bored Apes and Mutants is proportional to their maximum supply, and large enough to create attractive prize pools in the Apecoin ecosystem.
Specifications
The $9 Million USD in Apecoin will be transferred to a DAO controlled wallet with the same specifications as the treasury. The funds will be use to purchase the cheapest Bored Ape and Mutant Ape NFTs available to the open market utilizing the following guidance:
- $6.18 million allocated to sweeping Bored Apes until funds are exhausted.
- $3.82 million allocated to sweeping Mutant Apes until funds are exhausted.
The NFTs will be purchased using an aggregated NFT marketplace (i.e. Blur). Any unused funds are to be returned to the DAO treasury. These NFTs will be held by the DAO until requested by future AIPs.
Steps to Implement
- Create an Apecoin DAO controlled wallet
- Fund the wallet with $9 Million USD in Apecoin and enough ETH for a Uniswap transaction (0.01 ETH conservatively)
- Swap the Apecoin to ETH on Uniswap
- Utilize an aggregated NFT marketplace to purchase $6.18 million dollars worth of the cheapest Bored Ape NFTs available on the market
- Utilize an aggregated NFT marketplace to purchase $3.82 million dollars worth of the cheapest Bored Ape NFTs available on the market
- Return all unused funds to the Apecoin DAO
Timeline
- Allow 1 week for the creation and funding of the DAO controlled wallet after the passage of this AIP
- Allow 24 hours after the creation of the wallet to purchase the NFTs
- Allow 24 hours after the purchase of the NFTs to return the funds to the DAO
Overall Cost
$9 million USD