Hard pass on MagicEden building out a marketplace for ApeCoinDAO.
To catch all Ethereum natives up to speed, MagicEden is the most centralized and controversial marketplaces on Solana.
History of web2 centralized approach to NFTs:
TLDR: If you thought OpenSea was bad when it comes to freezing tokens, it’s even easier for MagicEden to do so where every transactions requires a generated signature from their servers for you to successfully interact with their marketplace. If their servers ever crap the bed or is sanctioned much like TornadoCash, you CANNOT delist, list, buy, or sell NFTs on their platform.
History of misusing their launchpad to launch rugs to the detriment of ecosystem natives:
Thank you for taking the time to consider our lower fee solution, built custom for the Yugaverse. We’re already live testing on mainnet, and launching with several reputable proejcts starting later this month!
Thanks RedVulkan! We’re excited to see what we can do on behalf of the Apes too. The merch component would be intended for distributing new APE foundation merch or DAO-approved merch via integration with platforms like Shopify. We can also help by offering connections to merch brands, merch producers, and ecommerce platforms we know who work with top NFT collections.
For secondaries - we can power this easily for digital-physical NFTs - so if it’s something where an NFT’s utility is redemption of physical merch, we can support the trading + token gating to redeem. For off-chain secondary resale of merch, given enough demand, we could look into integrating a secondary resale platform, like trove recommerce, into the marketplace.
Yo ssp, thanks for reading through and your feedback here. We had a cross-functional team on our side working to gather feedback from the community and put this proposal together over the last month. Happy to hear the effort and energy from our side shows.
We are running this proposal through the DAO, firstly, because we want to involve the community. Secondarily, we also strive to be the official marketplace on the ApeCoin domain, which requires DAO approval. A core part of Magic Eden, since inception, has been to involve the community and feedback to inform our product and marketplace. We want this to feel like an open conversation to develop the marketplace together with ApeCoin DAO. From the many conversations we’ve had with apes and DAO members, we have a lot of respect for the community cultivated by the ApeCoin DAO and amongst Ape holders. We thought it was important to submit this proposal via the DAO for these reasons.
We are parallel pathing design (initial designs shared in the proposal), and the whitelabel marketplace tech is a core capability of Magic Eden. This means, once the proposal is approved via vote, we can move quickly to launch the ApeCoin DAO Marketplace.
The third question would probably be a question for the DAO on if there could be multiple approved marketplaces on the ApeCoin DAO domain. Owners can ultimately choose to list apes where they prefer, so there is room for multiple marketplaces as there are many that exist today. We hope to be the preferred one for the apes given the fee structure, $APE utility we’re proposing, and also our focus on the community. We also believe that holders benefit from having a preferred marketplace to pool liquidity of listings. And in this regard, ApeCoin DAO marketplace would share listings with Magic Eden (listings to ApeCoin DAO Marketplace would appear on Magic Eden; listings on Magic Eden of BAYC, MAYC, BAKC appear on the ApeCoin DAO Marketplace) as an added benefit.
Hey fridayyy, appreciate the vouch for our team. Been great speaking to you in the past as well.
We wanted to keep the proposal as a minimal lift from the APEcoin DAO so opted to not ask for a grant out of the gate. We thought a lot about the fee too and set it at 0.75% after many convos with Apes. We received a lot of positive reactions that this would be a meaningful discount from the 2.5% most ape transactions face today. We hear you that the lower fees the better, so we are open to exploring a future proposal to get a grant to lower fees to drive further adoption.
Down to discuss APE Worlds with you, and in general, for this marketplace to support future NFTs approved by ApeCoin proposals. DM us via the ME twitter and let’s find time to chat. We have a gaming vertical (Eden Games) and support games across investment, advising, powering in-game marketplaces with our SDK, and launching NFTs on behalf of games, so there are multiple ways we could potentially work together.
This initial proposal does not include returning tokens back to the treasury, but we outlined it as an idea in the future initiatives section. Our understanding is that this is allowed so long as passed via AIP proposal process. Our general counsel would work closely with the DAO and moderators to navigate how we could make this happen if it’s something the community and DAO wanted to see.
Here is a link to the live whitelabel marketplace for raydium - https://nft.raydium.io/. We have more launching very soon that we can follow-up and share here as well.
Hey, we’re always happy to address constructive feedback although not sure how effective we’ll be in changing your mind. We have a team of over 100 people who deeply love NFTs, many of whom come directly from the community. For the past 11 months, we’ve prided ourselves on developing and maintaining strong relationships across the community on Solana and have invested significant effort into getting to know the NFT community on Ethereum.
We are excited about this proposal because we think we could genuinely do an amazing job at it and have the right resources to deploy to something this ambitious. We believe that the way we’re set up organizationally to develop an amazing product, ship quickly, incorporate feedback, and work alongside the ape community. We’re also reducing marketplace fees significantly to 0.75%, with no cost to the DAO for building the marketplace.
We don’t think it’s constructive to conflate the dual signature with why we are not fit to build this marketplace. Just because we require dual signatures does not imply that all your apes would be stolen or any of the unfounded events you mentioned. We have no intention of freezing stolen assets and have never frozen a single asset.
I am an advocate overall for this marketplace. I truly appreciate the attentiveness to features that ape owners have asked for. The white-glove custom marketplace on the apecoin domain is not only the right choice, I feel as though its the only correct choice. I have seen many complain that “we want a market place like punks”, but apes & punks are not the same at the smart contract level … so we cannot treat them the same. I feel as though the 1.5% fee is much better than OpenSea, and adding in the incentives down to 0.75% makes it look a lot better. I appreciate the design mock-ups which seem to cohesively fit the BAYC branding & the future outlook as a launch platform and merchandise hub. I have a high level of trust that Magic Eden would ship a high quality product. My most appreciated point from the AIP is the line that states Magic Eden will allow the DAO to discuss how the revenue stream back to the DAO is split. So when you sit here and think 0.75% is still too high … it’s really not … especially considering their willingness to split revenue back to the DAO itself. Now, that being said … here are some key items and features I would like to see in the final version of the marketplace to get my vote:
A very high quality third-party audit of the supposed marketplace build & associated contracts
Social Features on the platform … ability to direct message owners would be outstanding … someone made a great point the other day that no one would purchase on PoshMark if they couldn’t message the seller first
Using the BAYC,MAYC, & BAKC marketplace as an NFT passport for future APE targeted releases … to explain, owners could comfortably connect their wallet to marketplace itself & prove ownership of said tokens … any other projects going forward that want to give release preferences to ape owners could inquire the marketplace to see what wallets own what tokens … instead of requiring a direct wallet connect from most owners vault account … a step further could be to allow owners to add a “hot wallet” address in their profile that would allow these other projects to gather what addresses own apes & what address they prefer to mint something from
This proposal is worth considering and well-timed, opening a discussion on one of the most important “assets” of the DAO, a future marketplace.
Seems clear to me that an internal development by Yuga is not feasible, as such a form of outsourcing model should happen, the question is which kind of outsourcing model? I am no expert in this but I foresee that the contractual relationship will be a complex and highly critical aspect of this project with a third party involved, as such I suggest @magiceden to provide more details about their suggested contractual model.
Then I have 2 major comments:
1) split the revenue fee with the DAO. Postponing the arrangement to a later stage reminds me of the “caps for staking postponed to a later AIP”. This is a cornerstone of the whole collaboration and should be clarified and proposed in advance, not later. I also don’t see how such split would not be a contractual provision between the parties, and not just modifiable by a DAO vote.
Ideally the fee back to the DAO should be as high as possible, eventually “in exchange” for a grant to develop the platform, which was already approved by the DAO and I cite:
"Up to .3% of the Ecosystem Fund for development of an ApeCoin NFT marketplace: This allows for the creation of a decentralized NFT marketplace, subject to advice from counsel, where creators can set their own secondary fee, and the marketplace’s commission fee will feed back into the Ecosystem Fund."
So unless this key item is clarified, for me is a NO.
Otherdeeds: in a new Apecoin marketplace Otherside deeds should be included since the very beginning, we already lost tons of money to OS, if it takes some more weeks doesn’t matter. We should do things right and not in a rush.
In general I disagree to open quickly a marketplace endorsed by the DAO and then open others and lets see how it goes. It should be a comprehensive well designed, a once-for-all marketplace, with a proper decision making process. In this sense I believe Yuga / DAO Council / Foundation should coordinate a pitch with different players, as we don’t know if other players might build a better Apecoin marketplace (or at least I will wish to know the opinion by the founding members of the DAO).
Finally considering the importance and complexity I suggest to extend the community discussion by another week.
Appreciate your time & consideration reviewing this, as well as the feedback provided here.
Happy to always openly chat about what kind of model the DAO wants, and being collaborative partners along the way is a big part of why we brought this the DAO & an proposal process.
Please find response below to your comments!
Response to the above: We are open to different models in our products, however we have been advised that flowing fees back to the DAO will trigger potentially significant legal and/or regulatory considerations and review that may have implications for the entire DAO. This is why we chose to try and build out the marketplace first, and then figure out the fee flow and legal implications later via specific follow on AIPs proposed by the community. As we want this to be the start of a longterm relationship, we want to make sure we follow the best process.
Response to the above: Our initial proposal only covers DAO-specific NFTs - BAYC, MAYC, and BAKC. Going forward we would love to include additional projects voted on by the community in follow on AIPs. Again we definitely want this to be collaborative, so we would love to hear additional community feedback around whether Otherdeeds should be included in this initial proposal!
Hope this helped to address and please shoot over any follow ups! We will also be looking to do a space with the community in the next coming days.
Hey @PolandSprings - Snag Solutions is a B2B services provider building on top of reservoir and thirdweb, with direct support from the Reservoir0x team. We differentiate based on our focus on custom first party marketplace experiences, including surfacing ‘matched items’ across Yuga collections, and building toward social tools like feeds of Twitter spaces/posts from the ApeCoin community.
I was really happy w/ how Magic Eden reached out to many people. At the end of the 30 minute call with me, they said “who else should we talk to?” I liked that professionalism & work ethic.
My contribution to this thread is to request Otherdeeds be included in the marketplace. It’s an important asset that is traded by many people both inside & outside of the BAYC/MAYC & DAO community. It should definitely be included on any marketplace attached to the apecoin domain!