AIP-87: NFT + IP Marketplace / Yuga Labs + Otherside Partner NFT Collections - Ecosystem Fund Allocation

Proposal Name: NFT+IP Marketplace for Apes

Proposal Category: CORE: ECOSYSTEM FUND ALLOCATION

Abstract | Two or three sentences that summarize the proposal.

We believe in the following:

  1. To achieve the goal of growing the ApeCoin ecosystem, a core focus should be on increasing its use as a form of payment. Even within a bear market, NFT sales/trading continues to be one of the largest crypto-native economies.
  2. Projects should have their own marketplace, and the time is now for Yuga Labs & Otherside Partner NFT collections to have our own.
  3. It is time for a NFT Marketplace to evolve and serve the needs of the larger NFT economy. One that expands beyond the sale of NFTs but includes additional components like Intellectual Property.

We also believe actions speak louder than words. Instead of offering to build a marketplace, we built one first. It is currently live on the temporary URL: apecoin.x.xyz with the IP marketplace going live if the proposal passes. This allows the community to try the marketplace before voting.

Motivation | A statement on why the APE Community should implement the proposal.

Our proposal provides the following value to the ApeCoin ecosystem:

Promotion of APE

  • Support an APE first ecosystem with a marketplace focused on APE use. By making it easier to spend APE, the total use case for APE expands and helps achieve its goal to empower a decentralized community building at the forefront of web3.

Marketplace for the NFT economy

  • NFTs are more than just buying and selling. With our marketplace, we’ll provide a focal point for not only NFT owners to buy/sell NFTs but also monitize their NFT IP.

Burning of APE

  • Taking inspiration from EIP-1559, the marketplace will help lower the supply of APE by burning 100% of all marketplace fees collected. If a sale is not conducted in APE, then it will be purchased on the secondary market and subsequently burned

Security

  • Using the contract address for each NFT collection, we can guarantee only authentic Yuga Labs and Partner NFTs are displayed on the platform. While this wouldn’t prevent fake collections from appearing on other marketplaces, it reinforces the benefit in using the Ape marketplace.

Front end redundancy

  • Listings made on the Ape marketplace will also appear on the x.xyz front end. This acts as insurance, should the Ape marketplace front end ever go down and expands the reach for potential buyers.

Support & Future proofing

  • The Ape marketplace will have a dedicated support channel within the X Marketplace Discord. New features/developments made for X Marketplace will be available for the Ape marketplace, as aligned with the community.

Rationale | An explanation of how the proposal aligns with the APE Community’s mission and guiding values.

Our proposal supports the APE community’s mission and guiding values in the following ways:

  • Mission: Our proposal directly helps the ApeCoin DAO mission by adding value through an increased use case and the burning of APE.
  • Boldness: Our proposal is unorthodox. We already built the marketplace to show the community what they are getting. There is no guarantee of our proposal passing but we bet on the community and our belief in the value we bring.
  • Equality: The marketplace is permissionless and peer-2-peer. It allows for equal participation and benefit.
  • Transparency: We’ve approached the discussions with the community with full transparency, answering genuine questions and even changing our approach based on feedback. We are governed by a DAO ourselves and understand this importance.
  • Collective Responsibility: We’re long time members of the BAYC community as well as APE holders ourselves. We built a marketplace for free with 100% of the marketplace fees being burned in APE because we believe it’s what’s best for APE as well as the broader NFT community. We will always be members of the community; which is why our proposal is focused on adding value.
  • Persistence: We proactively engaged and listened to the community when our first pre-proposal idea was posted in April. It was knocked back. So we regrouped and returned with a revised proposal and more comprehensive marketplace.

Key Terms (optional) | Definitions of any terms within the proposal that are unique to the proposal, new to the APE Community, and/or industry-specific.

N/A

Specifications | A detailed breakdown of the platforms and technologies that will be used.

The Ape marketplace will support BAYC, MAYC, BAKC, BACC, Otherdeeds, CrytoPunks, Meebits, Nouns, CrypToadz, World of Women, World of Women Galaxy and CoolCats.

  • Any new collections from Yuga Labs or new official partners to the Otherside Metaverse will be automatically added.
  • Any additional collections added to the marketplace will be by community decision.

Until the community aligns on a final domain name for the Ape marketplace, it will be temporarily hosted on apecoin.x.xyz.

Marketplace fee will be 1%.

100% of this fee will be burned in APE. If the sale was not conducted in APE, then it will be bought on the open market and subsequently burned.

APE burn will be updated on the marketplace front page and communicated with supporting transaction detail. Frequency of APE burn is TBD based on gas costs.

IP marketplace and dedicated support channel will go live if proposal passes.

The Ape marketplace will accept the following cryptocurrencies for listings: APE, ETH, WETH, USDC and DAI.

Steps to Implement | The steps to implement the proposal, including associated costs, manpower, and other resources for each step where applicable.

The NFT marketplace is currently live and temporarily being hosted on apecoin.x.xyz

There are no other steps to implement except for making live the IP marketplace, dedicated support channel and listing rewards claim if this proposal passes

Timeline | Relevant timing details, including but not limited to start date, milestones, and completion dates.

The NFT portion of the marketplace, with the APE burn mechanism and 1% marketplace fee, is already live. If the proposal passes, the IP marketplace and dedicated support channel will be live upon passing.

The final website URL will be dependent on the length of time for the community to align

The start of the listing rewards will be dependent on the length of time for the ApeCoin DAO to make the listing rewards payment.

Overall Cost | The total cost to implement the proposal.

We are asking from the ApeCoin DAO the following:

  • Monthly fee to X Marketplace of 12,500 APE for a 6 month term, renewable by a later vote.
  • 1 time payment of 500,000 APE for use as Listing Rewards during the first 4 weeks.
  • After 4 weeks, any unused APE from the Listing Reward allocation will be returned to the ApeCoin DAO.
  • Regular support, such as Twitter retweets/engagement, in helping build awareness for the Ape marketplace.

The Listing Rewards will work as follows:

  • For a listing to be eligible to earn rewards it must be listed within + or - 25% of the OpenSea floor price.
  • Floor price is checked for eligibility and rewards are accrued on an hourly basis.
  • 744.05 APE will be available for Listing Rewards every hour: 500,000 APE / 4 weeks / 7 days / 24 hours = 744.05.
  • A base amount of APE per listing will be calculated hourly based on the number of eligible listings with a 1X multiplier applied for Nouns, CrypToadz, WoW, WoW Galaxy, CoolCat and CryptoPunks listings. A 2x multiplier for Meebits and BAKC. A 5x multiplier for MAYC and a 10x multiplier for BAYC and Otherdeeds. BACC is excluded due to complications with ERC1155.
  • For example if there was only 1 listing for a Cool Cat and 1 listing for a BAYC in a given hour, the reward accrued would be 67.64 APE for the Cool Cat listing and 676.41 APE for the BAYC listing.
  • The rewards will be claimable on a daily basis

To ensure listing rewards can begin ASAP, if this proposal passes, we ask for the listing reward payment to be made within 24 hours or less.

4 Likes

We have launched the demo site early. As per the above proposal, the URL is temporary for now until the community decides on the final: apecoin.x.xyz

This is live now - and any sales that occurs will still burn 100% of the marketplace fee in $APE. Marketplace fee is 1%, as per the proposal.

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Hi @ZastrowBradley,

Your topic will be automatically closing in less than 24 hours. Are you content with the feedback received, or do you wish to extend community discussion for a further 7 days?

If we do not hear from you within 48 hours after your topic closes, your topic will be moved straight to the AIP Draft process.

We look forward to hearing from you.

- river

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Hi @river

Great to connect again and thank you for the message

We are content with the feedback and look forward to proceeding with the AIP Draft process

Would you mind sending the AIP template again?

Thanks again!

Best

Brad

1 Like

This topic was automatically closed after 7 days. New replies are no longer allowed.

Thank you @ZastrowBradley for your ideas. A moderator will get in touch with the author to draft the AIP in the appropriate template. Once the AIP is drafted and meets all the DAO-approved guidelines, the proposal will be posted on Snapshot for live official voting at: Snapshot

Follow this Topic as further updates will be posted here in the comments. @ZastrowBradley please see your messages for the next steps.

- river

1 Like

Hi ApeCoin DAO Community,

@ZastrowBradley has completed editing their AIP Idea to be their AIP Draft.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

- river

3 Likes

Hi ApeCoin DAO Community,

Our team has reviewed and discussed @ZastrowBradley’s AIP Draft and have sent a list of initial questions. We await answers.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-river

1 Like

Hi ApeCoin DAO Community

Answers have been provided back to River and the ApeCoin team

Warm Regards

Bradley

5 Likes

Hi ApeCoin DAO Community,

@ZastrowBradley has responded to our questions and they are in our review once again.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-river

2 Likes

Not sure why this proposal didn’t receive replies by other members before but as I still see it open here’s my quick comments:

  1. APE use: I don’t see an incentive to use APE as way of transacting because the fee is set at 1% regardless of coin used. To incentivise APE utility, this should have a lower fee than other coins.

  2. rewards: I don’t see why we need rewards for an apecoin mkt and especially I don’t see why the DAO should spend money on that. People should use the mkt because has lower fees, has functionality, for sense of apecoin membership and self interest (burning ape). If this will not happen, not DAO’s problem.

Good idea for the APE burning. About the monthly grant, probably to align incentives and lower possibility to waste resources, I would have prefer lower grant and a %fee (not APE) going to mkt.

1 Like

Cheers mate for asking the above - below is our views/rationale:

  1. APE use: Our goal is to benefit the APE ecosystem. While there is not a discount for APE transactions - every transaction (regardless of token used) in our proposal benefits the APE ecosystem. This is because 100% of the market fees are burned in APE. If the sale wasn’t in APE then it will be first bought on the open market then burned.

  2. Rewards: We believe that rewards are critical to kickstarting any marketplace. For the marketplace to succeed it needs inventory and liquidity - which is the goal of the reward program. We do not believe a discount by itself will achieve this, as evidenced by OpenSea. If fees were the primary driver, OS would have lost a lot more business to LR and X2Y2 than they did.

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Hi! I have two quick questions:

  1. For the part where it says “the marketplace will help lower the supply of APE by burning 100% of all marketplace fees collected” would it make sense to change “lower the supply” to “lower the circulated supply”? I understand it’s going to a burn address (which acts like a real burn) but the actual supply is remaining the same while the circulating supply is reduced. Might clear up some confusion I saw some having around this.

  2. Can you provide more details about what the “monthly fee of 12,500 APE for a 6 month term” includes? I might have missed this explanation in another thread so sorry if it has already been explained.

Thanks!

2 Likes

Thank you for asking the above! To answer your questions:

Question # 1) APE burn: As a quick point of clarification, we are doing a real burn. Burning a token is the act of permanently reducing the circulating supply of a token. This is a standard industry term and the most common way to burn tokens is by sending tokens to a burn address, which is what we are doing. I’ve also included a few links on the topic speaking to the definition of burning in more detail:

Question # 2) Monthly Fee: Instead of the project keeping a % of the marketplace fees as compensation, we elected to take a flat fee. As with other proposals, this pays for the same - website build (past tense as we already built it, apecoin.x.xyz), support, maintenance, ongoing development, etc… We elected for a 6 month term, because we believe any marketplace proposal should prove itself for a defined period to the DAO before receiving an evergreen relationship. We are required to continually “prove” ourselves to the community or risk losing a renewal opportunity down the road. This is a de-risk measure for the DAO.

3 Likes

Hi ApeCoin DAO Community,

We have sent a list of follow up questions. We await answers.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-Pearson

1 Like

Hi ApeCoin DAO Community

There were 2 new questions from the team which we have just sent through answers.

We await timelines and next steps

Kind Regards

1 Like

Hi ApeCoin DAO Community,

@ZastrowBradley has responded to our questions and they are in our review once again.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-Pearson

2 Likes

Hi ApeCoin DAO Community,

We have sent a follow up question to the author

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

- river

3 Likes

Hi ApeCoin DAO Community,

We have provided our answer to the received question.

Kind Regards,

Bradley

2 Likes