PROPOSAL NAME:
Enable $APE as a payment option for onchain consumer transactions on Co:Create Ink
PROPOSAL CATEGORY:
Ecosystem Fund Allocation
TEAM DESCRIPTION:
Co:Create Ink is committed to recognizing and rewarding the contributions of community members and building a more equitable internet, one where shared ownership is paramount. We are intentionally built by ten diverse Founding Artists around the world, who include:
Kat Tat - Los Angeles, California
Moni Marino - Pozzuoli, Italy
Black Symmetry - Lisbon, Portugal
Snuffy - Brooklyn, New York
Curt Montgomery - Toronto, Canada
Horimitsu - Tokyo, Japan
David Allen - Chicago, Illinois
Cleo Kinnaman - Los Angeles, California
Victor Montaghini - SĂŁo Paulo, Brazil
Dillon Forte - Austin, Texas
ABSTRACT:
This AIP seeks to create an extension of Co:Create Ink, enabling redeemable and digital-only tattoo designs to be powered by and purchased with $APE, with the primary objective of establishing a sustainable business model that:
- Establishes a new use case for $APE
- Creates real-world consumer transactions using $APE
WHY TATTOOS?
The history of tattoos goes back thousands of years. Yet, in modern times, tattoos were taboo in much of the Western world. They were an art form associated with sailors, soldiers, and criminals, something you hid if you wanted a âwhite-collar job.â In fact, tattoos were made illegal in many US states and cities for decades, with tattoo bans not repealed in New York City until 1997.
Things have changed drastically in the last two decades. 1 in 3 Americans now have a tattoo. When we look at younger demographics, that percentage increases dramatically - more than 50% of women aged 18-49 have tattoos. Perceptions have also changed, with 80% of Americans stating they believe society has become more accepting of tattoos in recent years.
The tattoo industry has grown alongside this shift in perception. By some estimates, the US tattoo industry alone exceeds $1.5B USD and is projected to reach $3.9B by 2030. For all the growth and cultural relevance of tattoos, the business of tattooing has yet to evolve.
The industry needs to be more cohesive, composed mostly of small, independently owned businesses. There are no dominant software platforms or point-of-sale systems. As a result, tattoo shops have remained primarily cash-only businesses.
Second, the price artists charge for their art is based on how long it takes them to apply a tattoo, not based on the art they create, contrary to how prices are set for most other art forms. Tattoo artists are still paid like hourly workers.
With the rise of social media and the creator economy, we have seen the emergence of tattoo artist celebrities. These top tattoo artists have massive social media followings, with some garnering millions of online followers. Not surprisingly, appointment wait times can extend multiple years for what are rightly considered masterpieces.
BENEFIT TO APECOIN ECOSYSTEM:
We imagine a future where ApeCoin powers a sizable percentage of global consumer crypto payments. Co:Create Ink will introduce ApeCoin to new users, positioning $APE as THE method for onchain consumer transactions. ApeCoin DAO will leverage Co:Create Ink as a platform to accelerate adoption, inspiring more real-world applications and mainstream adoption of $APE as a payment gateway.
2.5% of top-line revenue from all transactions paid for with $APE will be sent to the ApeCoin DAO treasury until the full allocation of this AIP is returned. Distribution of revenue back to the DAO treasury will occur on a bi-annual basis until $50k USD or the equivalent of ApeCoin is returned to the DAO.
10% of revenue generated through $APE transactions will be held for three months in $APE by Co:Create Ink.
KEY TERMS:
Redeemable Tattoos: NFTs (ERC-721) that can be redeemed to book a session with the artist who created the design.
Digital-Only Tattoos: NFTs (ERC-721) that are unique digital certificate stored on a blockchain that prove ownership of a specific digital tattoo design that is non-redeemable.
PLATFORMS & TECHNOLOGIES:
Designs are minted as dynamic NFTs and individuals purchasing one of these âdigital tattoosâ receive the right to apply the tattoo in person with the artist that created the design. This enables collectors to receive priority bookings with in-demand tattoo artists during redemption periods set by the artist. After a tattoo is redeemed, the artist marks it as redeemed in their administrative dashboard, and the dynamic NFT updates to reflect its redeemed status, creating a digital certificate of authenticity.
Since tattoo designs are minted as NFTs, it opens up the potential for new behaviors to emerge. Collectors can trade these digital tattoos, both before and after redemption. They can pass the digital tattoos down to family members and represent their tattoos in digital galleries and physically on their person.
Collectors will be enabled to purchase three tattoo types with $APE, each representing a unique digital certificate stored on a blockchain that proves ownership:
- 1:1 Tattoos â Tattoos an artist will only tattoo once. These tattoos will be issued as ERC721 tokens on the Polygon Network. The tattoos can be upgraded & changed to reflect statuses like âtattooedâ or âno longer redeemable for a tattooâ.
- Limited Editions â Tattoos an artist will tattoo more than once (e.g. 5/5). These tattoos will be issued ERC1155 on the Polygon Network. The tattoos can be upgraded & changed to reflect statuses like âtattooedâ or âno longer redeemable for a tattooâ.
- Digital Tattoos â Digital collectibles that are not redeemable for a physical tattoo. These tattoos will be issued as ERC721 or ERC1155 tokens on the Polygon Network.
When live, smart contract deployment and $APE transactions will be migrated to ApeChain.
STEPS TO IMPLEMENT & TIMELINE:
Beta Phase:
- Objective: This phase primarily aims to enable a payment gateway to transact in $APE. Identifying early bugs and gathering initial feedback on user experience is crucial.
- Duration: 4 weeks (the project will begin after the voting period has ended and project has been approved)
- User Audience: $APE and Yuga Ecosystem NFT holders
- Access: Token-gated, with access allowed by holding $APE (50 min) or a Yuga Ecosystem NFT. Users will receive an Ink Early Access Pass (NFT; ERC-721) after signing up for a Co:Create Ink account. Referral codes will be provided to Early Access Pass holders to invite friends.
General Availability (GA) - Open Sign Up:
- Objective: To open the platform to the public, allowing anyone to purchase tattoos and book appointments with $APE
- Duration: Permanent
- User Audience: General Public
- Access: No longer token-gated for access, enabling a broader audience to join, participate, and purchase tattoos with $APE!
OVERALL COST:
Total amount requested from the ApeCoin Ecosystem Fund = $50,000 to be paid in $APE to create a payment gateway on Co:Create Ink to support purchases in $APE.
Below are areas in which we will use the $50k to enable a payment gateway to accept APE for purchases:
- Legal review to ensure no issues are accepting APE to buy tattoos domestically and internationally
- Identifying and integrating with a crypto payments provider/platform
- Design and product management to create a product requirements doc and Figma designs
- Engineering resources to build and test APE payment rails in the product
- Operationalize accepting payments in APE and paying artists on a set cadence
