ORIGINAL PROPOSAL:
AIP-324: ApeCoin DAO Governed GameFi Smart Contract Wallet
RESUBMISSION UPDATES:
We have made the content more clear and fluid.
Now all the features and values are better explained.
Major change is in the terms, while we left the original request (despite overall cost increasing on our side) we offer the ApeDAO a substantial percentage of our STZ token supply (2.02%), making the ApeDAO token holder at the same level as founders.
PROPOSAL NAME:
ApeCoin Powered GameFi DAOs & Vaults
PROPOSAL CATEGORY:
Ecosystem Fund Allocation
TEAM DESCRIPTION:
Author Description
Luca Lamberti - CEO of 99starz
A former sales and racing executive in the automotive and motorcycle racing industry, financial and change management advisor. Active for years, he’s a well-connected investor and advisor of several prominent crypto – blockchain projects. He is a trading pro and large NFT portfolios manager. A strong believer in NFTs and the Metaverse mission.
Team Description
A world-class team with deep expertise in blockchain, gaming, enterprise software, and more.
Key team members:
-
Yat Siu - Strategic Advisor
Animoca Brands co-founder and Executive Chairman -
Tony G - Co-founder
World-famous poker player, a former Member of the European Parliament, and CEO of Cypherpunk Holdings. A serial digital entrepreneur, venture capitalist, and philanthropist -
Omer Khan - CTO
A Silicon Valley-based CTO for 3 startups, has over 15 years of experience in contact center engineering, AI, and blockchain, also a former Director of Engineering for a Washington DC-based $2 billion AI unicorn. Frequently quoted in Forbes, Entrepreneur, and Thrive Global -
Gediminas Klepackas - COO
Gediminas is a professional manager with a decade of experience in international affiliate marketing. He propelled both Pokernews.com and Cryptonews.com -
Sherman - Strategy & Growth Advisor
Co-founder of Raven Protocol, a decentralized deep-learning training platform. Took part in several other successful ventures, including Zeroth.ai, a Hong Kong-based venture capital firm later acquired by Animoca Brands.
At Zeroth, he previously served as one of the partners
Keith Rumjah - Growth & NFT Specialist Advisor
Currently the CEO of OliveX (NSX:OLX) and $DOSE token. Building a fitness metaverse on the blockchain. Previously, he founded Coachbase, the number one paid sports app on iOS, Android and Mac, also acquired by Animoca Brands
This AIP is entirely designed and will be developed by the 99Starz development team.
ABSTRACT:
This AIP aims to build an ecosystem of GameFi NFT-based DAOs and vault, powered by ApeCoin. Using smart contract wallets, the AIP will establish a lend/borrow NFT assets & rewards vault for the game community.
The ApeDAO wanted to implement active user engagement in a Game community by enabling GameFi Segment with the DAO and smart contract Wallets. As NFT-based P2E games grow in popularity, NFT asset management ecosystems - driven by the community - are becoming essential, as they allow asset rotation among active community members. This maximizes the potential of NFT DeFi.
Gamified DAOs are built in a way that only allows active wallets to keep the assets and continue participating in the game. For inactive assets, the DAO will run a vote to pull them from the member wallets and into the vault. The assets will later be reallocated to other members, as per the policy set by the DAO members.
This approach increases NFT scarcity and price in the market which will eventually attract more buyers and investment in the ApeCoin-driven DAO community. Furthermore, the DAO will offer incentives to participating voters, creating a constructive cycle of engagement.
All the DAO processes will run on a predefined set of rules to streamline community governance.
Each game community will have its own DAO and members where rules of governance and different policies are defined by the community members. Once the governance is established, a dedicated vault is created/ deployed for each community to lend their assets either as an individual member or through a community proposal for pooled resources. The community can buy assets for the vault to be later lent to the players and earn rewards based on a distribution set by the DAO distribution policy.
BENEFIT TO APECOIN ECOSYSTEM:
Problem / Solution fit, WHY are we building this?
In the GameFi NFT community, several issues need attention:
- Accessibility of assets for genuine players
- High costs associated with purchasing assets
- Idling assets in non-active wallets
Our focus is on addressing these challenges within the GameFi community.
We devised a system incorporating DAOs and smart contract-based wallets and vaults. This system enables the borrowing of NFT assets for gameplay. Additionally, the DAO has the opportunity to withdraw assets from idle and inactive wallets, ensuring accessibility for players genuinely interested in participating in GameFi applications.
Smart contracts are essential to ensure the complete utilization of GameFi NFTs throughout their life cycle. No GameFi NFT assets would remain idle. These smart contracts have the authority to retrieve and transfer assets from idle wallets. Additionally, they facilitate the creation of NFTs for a broader player base that may not be inclined to adopt GameFi NFTs due to their high market value. These NFT assets can be accessed from the vault temporarily through access-controlled smart contract wallets, ensuring that NFT ownership remains uncompromised.
DAO monetization (How will the DAO make money)
- Reward sharing: If a player gets assets for free, then they will share a certain pre-agreed percentage of earned rewards with the DAO
- Membership Plans: We will introduce the possibility of different tiers of membership plans giving players access to certain assets for free. Players will not share the cut from earned rewards if they have a membership
- One-time bundles: We can introduce the possibility of creating asset bundles and charge a one-time fee. Players will not share a cut from earned rewards.
- One-off renting: Players would be able to rent individual assets by paying a small renting fee. Players will not share a cut from earned rewards.
ROI Model simulation
The possibilities are endless and only depend on individual subDAO’s strategy.
They could invest in a high revenue model, a high community growth model, or a mix.
The table above is based on the following simulation:
- Investment in 4 different games, with a mix of community growth and high yield.
- 8,000 players in total, each one with assigned assets worth from $15 to $1,000.
- Partnerships or Sponsorships for $50k first year, $100k second year. (Ape brand is a big driver, plus many could be interested in having brand association with your gaming organization).
- NFTs appreciating in value 10% yearly
As a result, the ROI is POSITIVE.
The above doesn’t even include complex yield mechanisms like passive earning assets (lands, staked assets,…), various metaverse tokenomics, direct lending revenues, subscriptions.
Game by game, season by season, the strategy can be flexibly adapted to the vision and goals of each subDAO.
Like we said - the possibilities are endless.
Big picture: Long-term impact on the APE ecosystem
This solution will have a profound effect on the ApeDAO as the entire system relies heavily on ApeCoin and operates with APE as its driving force. Every activity within this ecosystem will directly influence ApeCoin. Beyond the utilization and monetization of ApeCoin, this system integrates the APE ecosystem with the GameFi segment of NFTs, making any future game integration dependent on APE as well. It will not only increase the number of APE coins / NFT holders but it will also influence the utility, liquidity and velocity within the APE coin ecosystem. The ability to rent an expensive asset through subDAOs will open the mid-market floodgates for the APE ecosystem, eventually creating more demand pressure and raising the floor both for assets and APE coin.
Benefit to the ApeCoin ecosystem?
Only the APE Coinholder will have the opportunity to create and engage in game DAO and vaults. Thus, anyone who plays games using the vault assets must hold APE coins, the DAO member will receive a share of rewards, in some cases without engaging in the game directly (feature to be explored at a later stage).
- Bring in new members to the Ape community and effectively grow the community
- Enable a safe and fair lending system to “put to work” all NFTs, thus increasing their use cases, value, and market dynamics
- Attract more players to the Ape-related games through the ApeDAOs and large investors and guilds
- Make the ApeCoin ecosystem, in general, more guild-friendly; large investors and guilds would feel more motivated on investing in Ape-related NFTs and projects and bringing their network into the action
KEY TERMS:
Major differences between our Gamefied platform and traditional lending solutions:
PLATFORMS & TECHNOLOGIES:
How does it all work?
Within the ecosystem, there are several subDAOs, each with its specific focus on game assets, but the central DAO holds a pivotal position. This main DAO introduces and oversees multiple subsidiary DAOs.
The primary currency in this ecosystem is APE Coin, utilized within the main DAO for both voting and proposing new initiatives. A significant proposal often involves the introduction of a new game into the ecosystem. Once the voting quorum meets the acceptance criteria, the main DAO initiates a new game DAO along with its corresponding vault.
Members who contributed favorably to the voting process become participants in the newly-formed game DAO. Subsequently, the cycle of subDAO proposals begins, focusing on activities such as organizing fund gatherings, purchasing assets for the vault, extracting assets from the vault, and managing assets within the subDAO structure.
DAO investments in other game assets (leverage the APE brand)
DAO members can initiate a proposal aimed at pooling revenue for investment purposes. This can involve directing funds towards assets associated with the linked game or exploring potential NFT assets as part of an investment strategy for future profits.
How will the staking mechanism work?
- There will only be staking on the subDAO creation or the game onboarding to the ecosystem after the creation of the game DAO and the vault.
- There will be no staking, for players, of APE or any other coin. Players will just need to hold a certain amount of APE coins.
- DAO members will be able to rent out their collective subDAO assets via a dashboard.
- These terms are subject to DAO governance policies and could be flexible based on DAO’s/ subDAOs collective consent and can vary from game to game.
DAO member staking
DAO members would get special “Ape” badges. With DAO member badges, users would be able to get extra privileges like no need for game rewards sharing or getting discounted prices membership plans, assets bundles, or one-off renting (this is a flexible set of options that the DAO can implement to increase participation or growth).
Game player staking
A player can come directly from the Ape subDAO or through the Gamefied platform.
If the player comes from a subDAO, then they are a Game DAO member and will be able to interact with the Gamified platform as a player. A DAO member can also be a player, but to rent or borrow assets, they won’t need to stake any APE or STZ.
A player directly signing up on the Gamefied platform, on the other hand, can rent the assets from the subDAO for free. Through a tiered badge system (bronze, silver, gold) players get access to specific game assets. A player with a higher-tier badge would be able to get high-tier assets for games. To get higher-tier badges like silver and gold, a player will have to hold a certain amount of APE or STZ coins in their wallet.
Collateral requirement
A player holding a certain amount of APE coins in their wallet can get the assets for free. No collateral is required and the APE coins will be in the player’s wallet. It will be just a requirement to hold APE coins and be a member of the ApeDAO and the gaming subDAO. Again, the point is that this is completely flexible and based on subDAO rules and policies.
How will the DAO govern? (policies)
The DAO will be actively engaged in developing various policies, including:
- Membership policy
- Asset lending and pooling policy
- Asset borrowing policy
- Reward distribution policy
- Game integration consensus
These policy configurations will be established by DAO members to govern the life cycle of the DAO.
Membership Policy
Within the game DAO, wallets that did not participate in its creation can still become DAO members. This policy allows them to participate in all the subDAO/Game dao processes, including lending assets individually or collectively, as well as partaking in the incentives provided to DAO members.
Asset Lending and Pooling Policy
In the game DAO, the Asset Lending and Pooling Policy plays a crucial role in managing collective resources. It outlines the guidelines for lending assets within the DAO and pooling resources for collaborative endeavors. This policy ensures efficient utilization of in-game assets and a cooperative asset-gathering environment among DAO members. The rules set by this policy contribute to the strategic decision-making process, optimizing the DAO’s overall asset management.
Asset Borrowing Policy
The Asset Borrowing Policy within the game DAO establishes a framework for members and game players to borrow in-game assets for various purposes on specific sets of rules defined by this policy. This policy outlines the terms, conditions, and procedures for borrowing assets, for transparency and accountability. It serves as a guideline for members to access needed resources while maintaining the integrity of the DAO’s asset management system. The Asset Borrowing Policy contributes to a balanced and organized approach to asset utilization within the gaming ecosystem.
Reward distribution policy
In the game DAO, the Reward Distribution Policy defines the criteria for the distribution of earned rewards. After each fruition of the NFT assets, the DAO member can create proposals to alter the configuration of distribution percentages between the different stakeholders (players, captains, game managers, and subDAOs) for future uses.
Options include single-click mass payouts, payout timing, earned NFTs distribution rules, and more. All with a certain degree of flexibility to adapt to all possible strategies and games tokenomics.
Game integration consensus
In the main DAO, players vote for a game proposal, and if the votes favor its release, the game DAO and vault are initiated. However, the 99Starz core team will ensure the game is properly configured and its provider injected into the game application.
After the confirmation of the configuration, users holding assets from the vault can play the game.
The rewards earned through gameplay are then distributed among the members of the respective game DAO, creating a system where participation in the game directly benefits the members of the associated DAO.
In other words, once the game is integrated, the standard process (assets acquisition and management, revenues distribution, gaming strategies, etc…) can begin.
STEPS TO IMPLEMENT & TIMELINE:
Vote approved & funds released, development begins by an internal dedicated team
Six months to complete development and test system(s).
OVERALL COST:
$520k denominated in APE coins
2m STZ tokens will be given to the ApeDAO as partnership value, equivalent to 2.02% of the token’s total supply.
(STZ tokens will have a 6 months lock up period, starting from the day the ApeDAO fund are received.)
