AIP Idea: ApeCoin DAO Marketplace via NFT Embed, a Graviton product

Proposal Name: ApeCoin DAO Marketplace via NFT Embed, a Graviton product.
Proposal Category: TBD

I. Abstract

ApeCoin DAO earns significant revenue and enables a self-sustaining ecosystem by deploying a marketplace via NFT Embed, a Graviton product. The forgone benefits to date exceed $110 million[FN1], with $50 million of direct benefits and $60 million of indirect benefits.

ApeCoin DAO acquires a competitive advantage with NFT Embed. The custom referral fee drives immediate revenue to ApeCoin DAO. And the industry leading 0.30% marketplace fee drives significant savings to the community. NFT embed empowers ApeCoin DAO to support other creators on its marketplace powered by $ape, generating brand awareness and driving user acquisition.

NFT Embed is a free, no code, resource-light solution that takes minutes to deploy; cost-recovery is nearly instantaneous. The compounding economic benefits outweigh the risks and provide a viable alternative to other marketplace proposals to date.

II. Motivation

ApeCoin DAO earns fees from each sale on its marketplace powered by NFT Embed. Within the ecosystem and using 1% as the custom referral fee, the forgone revenue to date is $50 million. The most recent sale would have generated $1,800 in referral fees to ApeCoin DAO (BAYC #7232).

ApeCoin DAO indirectly benefits from community marketplace savings, which drives demand and users to their platform rather than a third-party site. Excess spend to date exceeds $60 million and grows with each sale. Continuing, the most recent sale would have saved the seller $2,200 in marketplace fees.

We must be persistent in our pursuit of marketplace options: there is risk in status quo. NFT Embed can be deployed by anyone within 5-minutes. ApeCoin DAO should be that anyone. Capture this value or risk continued leakage to competing marketplaces.

III. Rationale

With NFT Embed, ApeCoin DAO ensures economic activity is additive rather than extractive. The last sale alone would have added $4,000 to the ecosystem, with $1,800 in direct revenue and $2,200 in indirect benefits.

Comparatively, revenue to ApeCoin DAO is greater than other proposals. AIP-93 and AIP-98. Marketplace fees are lower. Id. Functionality is similar and ease of use greater. Risk is objectively lower. And NFT Embed is deployable and actually in-use now.

Table I – AIP Marketplace Comparative

NFT Embed is a significant step-forward in delivering on our collective responsibility to leave everything better than we found it. ApeCoin DAO and the community both stand to benefit from this proposal, a core tenant of web3 ethos.

Further, ApeCoin DAO can utilize NFT Embed to support other collections and earn referral fees therefrom. There are many examples. This includes projects building on improbable.io, who are legally required to build to their interoperable standards.

ApeCoin DAO should strategically support projects building on improbable. Early adopters will awareness of Otherside, the project anchor. We can capture this attention to drive web traffic to our website, driving user acquisition and conversion, and obtaining first-mover advantage as the marketplace of choice for projects building on improbable. Users prefer a trusted, native solution, and may be unaware of or too risk averse to use other third-party marketplaces.

Not only can ApeCoin DAO spin up an instance, but community members, affiliated artists, news publications, or even an independent blogger can start supporting web3 and $ape powered projects with ease.

In fact, NFT Embed was built by an ApeCoin DAO member. Community is everything and we can further empower members of ApeCoin DAO. For example, ApeCoin DAO can support Jenkins the Valet: The Writer’s Room by embedding the collection into our marketplace and directing the referral fee on to Jenkins. The opportunities are endless.

ApeCoin DAO’s revenue opportunities are vast and NFT Embed is deployable now.

IV. Key terms

“Graviton” means graviton.xyz, creator of web3 / NFT tools, services, and platforms for creators and fans to thrive together.

“Universe” means universe.xyz, a community driven and royalty enabled NFT protocol.

“NFT Embed” means the product as described on nftembed.org.

“Website” includes any website that supports iFrame embeds.

V. Specifications

NFT Embed provides free, no code, marketplace functionality and wallet connection out of the box.

NFT Embed is a fully customizable widget that allows you to display and sell NFTs on any website. NFT Embed code is compatible with web builders that support iFrame embeds, such as Webflow, Shopify, Squarespace, and Wordpress.

VI. Steps to Implement

A. Build a website or build a page within apecoin.com.

B. For each collection:

  1. Set-up collection royalties at http://royalties.nftembed.org/

  2. Set-up preferred NFT Embed options, including the finder’s fee.

a. BAYC example: NFTEmbed: Create Embeddable White-Label NFT Marketplaces

Images 1 and 2 – Example, NFT Embed: BAYC, 1% finders fee

b. MAYC example: NFTEmbed: Create Embeddable White-Label NFT Marketplaces

c. Serum Example: NFTEmbed: Create Embeddable White-Label NFT Marketplaces

d. BAKC Example: NFTEmbed: Create Embeddable White-Label NFT Marketplaces

e. Otherside Example: NFTEmbed: Create Embeddable White-Label NFT Marketplaces

f. Jenkins the Valet Example: NFTEmbed: Create Embeddable White-Label NFT Marketplaces (e.g., include collection on ApeCoin DAO website, send referral fees to source project wallet)

  1. Place your widgets into the website of choice in Step 1 by copy and pasting the generated iFrame code.

  2. Deploy.

Refer to Section IX: References for video demonstrations and Medium posts regarding NFT Embed functionality.

NFT Embed will be working towards expanding even more compatibility, through URL auto embeds and a React SDK framework.

NFT Embed is free to use. The cost to implement is nominal: a basic website will suffice. For a fully-fledged website with branding, the cost to implement likely ranges from $5,000 to $10,000. Referral fees on the last 24-hours of OpenSea volume is greater than this implementation cost.

VII. Timeline

Utilizing NFT Embed itself takes minutes. The major decision points should be discussed as part of the proposal process: NFT Embed options and website selection.

Implementation begins immediately after approval. Utilizing the apecoin.com domain (as also suggested in AIP-93 and AIP-98), the marketplace can be functional within one-to-two weeks following approval. ApeCoin DAO can be earning revenue by October.

VIII. Overall Cost

NFT Embed is free to use. The deployment cost is nominal, assuming ApeCoin DAO is amenable to launching on marketplace on apecoin.com. Otherwise, the cost to outsource website development is not to exceed $10,000.

IX. References

A. Step 2, Video: Sell NFTs From Your Website in 5 Minutes (Free & No Code NFT Embed Solution) (July 24, 2022): Sell NFTs From Your Website in 5 Minutes (Free & No Code NFT Embed Solution) - YouTube

B. Step 2, Article: How to Sell NFTs From Your Website in 5 Minutes (Free Embed Code) (August 3, 2022): How to Sell NFTs From Your Website in 5 Minutes (Free Embed Code) | by Troy Murray | Graviton.xyz | Aug, 2022 | Medium

C. Step 2, Article: The Universe Expands: Embed NFT Collections Today (August 15, 2022): How to Sell NFTs From Your Website in 5 Minutes (Free Embed Code) | by Troy Murray | Graviton.xyz | Aug, 2022 | Medium

D. Step 4, Community Built Marketplace Demonstration: https://twitter.com/QTRichieRich/status/1560230890474590208

E. Universe Documentation: Universe.xyz · GitHub

F. Universe Marketplace Audit (Feb-Mar 2022): xyzDAO-PM/PerfectAbstractions-Marketplace-Audit.pdf at master · UniverseXYZ/xyzDAO-PM · GitHub

G. Projects building with resevoir0x: Building with Reservoir

H. Socials

  1. @nftembed, @Graviton_XYZ, @universe_xyz, @universexyz.lens

  2. @reservoir0x

  3. @Theprawns_xyz

FN1. With an example 1% referral fee and a marketplace fee of 0.3%, the DAO earns 1% and the community saves 1.2% on every sale as compared to OpenSea. The $amounts used in the body are derived by applying these percentages to sales volume found here: Yuga Labs vs Proof Volume/Royalties (rounded; as of September 9, 2022).

Disclosure: the author of this AIP holds $xyz and is a member of the Universe DAO, but otherwise has no other financial affiliation with any parties mentioned and is not being compensated in any manner for proposing this idea.

Thanks for the awesome write up on us @Marklar!

Hey if anyone has any questions about this I’m sure we would be happy to answer them.

Universe Marketplace Protocol is designed to incentivize artists and front ends to use the protocol by offer the lowest trading fees in the industry at 0.3%.

NFT Embed is a new product and we are working on improving liquidity using Reservoir like @Marklar mentioned above.

For quick reference you can see the Bored Ape Yacht Club collection market here without all the branding of the NFT Embed set up site.

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Thanks for sharing your proposal idea and information on your project. Reading through, I had the following questions:

  1. Is there an incentive to transact in $APE? Other proposals include things like discounts for trades made in $APE or burning $APE.

  2. What collections will be included in your marketplace?

  3. Your proposal mentions a 1% referral fee flowing back to the DAO. However, the current structure of the DAO does not allow it to accept revenue. Do you have other plans or solutions to provide similar benefits that the DAO structure would allow?

  4. Can you please share more information and background on individual team members?

  5. Can you please provide a list of investors in your company?

  6. I see a mention of an indirect benefit to the DAO of $60 million. Can you please share more details on what the indirect benefit is and how you quantified the number?

  7. Your proposal mentions an industry leading fee of 0.30% but Rarible has a proposal with 0% fees.

  8. You mentioned ease of use is greater with your marketplace compared to other proposals. Can you please explain what you mean by that?

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Thanks for the thoughtful questions and factual corrections @RedVulkan.

Thanks for sharing your proposal idea and information on your project. Reading through, I had the following questions:

To level set, NFT Embed enables ApeCoin DAO to own a curated, $ape powered marketplace now. Third-party models were important for growth, but each successful project will eventually want its own marketplace and associated web-traffic.

1. Is there an incentive to transact in $APE? Other proposals include things like discounts for trades made in $APE or burning $APE.

The 0.30% marketplace fee is immutable without explicit approval by Universe DAO. See the latest vote here: Universe.

In terms of incentivization delta, NFT Embed does not currently offer optional finder’s fees. From an if/then perspective, one solution for future functionality may be ‘if $ape sale, then 0% finders fee’.

2. What collections will be included in your marketplace?

NFT Embed currently supports any ERC-721 with ERC-1155 support launching soon; any ERC-20 can be used to transact. ApeCoin DAO controls which collections are included on our marketplace. The proposal includes BAYC collections as the launch options.

3. Your proposal mentions a 1% referral fee flowing back to the DAO. However, the current structure of the DAO does not allow it to accept revenue. Do you have other plans or solutions to provide similar benefits that the DAO structure would allow?

The other proposals offer viable solutions, but introduce a multitude of risks that, to me, require an entirely separate proposal re: procedures and structure of accepting revenue (e.g., multi-sig, payment cadence, price risk, etc.). Any decisions involving these trust points should explicitly include elected members of the Special Council and not more vaguely trusted members of the community.

Apart from these solutions, there are multiple risk-off paths forward:

A. Set the finder’s fee to zero, leaving just the marketplace fee of 0.30%.

B. Same as A, but re-visit percent and recipient as needed. For example, when revenue flows are allowed and as the market dictates going forward.

C. Set the finder’s fee to x% and route to an industry supporting cause such as GitCoin. This is an excellent way to build goodwill throughout the community and such donations have been well received in the past. See, e.g., [Universe] Lobby Lobsters NFT drop raises $4M in one hour to support DeFi lobbying efforts (Cointelegraph, September 6, 2021).

D. Same as C, but revisit as needed.

E. For other supported collections, finder’s fees can be routed to their accounts. Jenkins the Valet - The Writer’s Room is used as an example in the proposal.

I support launching with option C and E, which have no foreseeable barriers or risks and drives awareness and traffic to ApeCoin DAO while building goodwill.

4. Can you please share more information and background on individual team members?

A list of Graviton and Universe team members, contributorsand advisors can be here (broke text to post):

graviton.xyz/team
universe.xyz/team

These include, but are not limited to:

A. Troy Murray: @Danny_Desert (aka @DannyDesert)
Founder/Contributor/Investor: @ Graviton_XYZ, @ barn_bridge @ universe_xyz @ leaguedao @ enterdao @ fiatdao @ pleasrdao @ d64vc

B. Tyler Ward: @ LordTylerWard
Founder/Contributor/Investor @ barn_bridge @ universe_xyz @ leaguedao @ enterdao @ fiatdao @ pleasrdao @ d64vc

C. Tim Kang: @ illestrater_
Founder/Contributor/Investor: @ SevensGrant, @ universe_xyz, @ CUEmusiclive
Built @ nftembed

Defer to @DannyDesert for more information.

5. Can you please provide a list of investors in your company?

Universe is a DAO: Universe. See proposal disclosure: no other financial affiliation here.

Defer to @DannyDesert for more information on investors.

6. I see a mention of an indirect benefit to the DAO of $60 million. Can you please share more details on what the indirect benefit is and how you quantified the number?

Marketplace savings increase ecosystem liquidity. There is a presumption holder liquidity is at least partially sticky, driving additional sales to ApeCoin DAO’s marketplace. To the extent other collections are supported on our marketplace, these savings drive additional users and traffic to ApeCoin DAO. The savings may even drive purchases of $ape. The benefit is not absolute, but there is a virtuous economic cycle to capture here.

Community savings: 1.20% x total ecosystem sales, as sited in FN1 (presuming all sales occurred on OpenSea for ease of presentation).

Where finder’s fees are set to zero, indirect community benefits increase and the other tailing benefits described in the proposal remain intact.

7. Your proposal mentions an industry leading fee of 0.30% but Rarible has a proposal with 0% fees.

The risk adjusted rate Rarible offers is likely greater than the 0.30% offered by NFT Embed.

Rarible’s unadjusted fee is lower. But we need to consider the risk of centralization, single collection support, and a 12-month term to host the marketplace as compared to NFT Embed.

NFT Embed provides ApeCoin DAO ownership of its marketplace into perpetuity, enables finder’s fees, supports any collection, and offers additional functionality going forward. And the 0.30% marketplace fee can only be changed via decentralized governance vote of Universe DAO, which includes current, economically aligned members of ApeCoin DAO.

8. You mentioned ease of use is greater with your marketplace compared to other proposals. Can you please explain what you mean by that?

From a user perspective, marketplace functionality is no different than current industry norms. From a marketplace owner perspective, NFT Embed simply requires a website and a few clicks to launch an audited, decentralized marketplace owned by ApeCoin DAO.

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Thanks @Marklar. I appreciate the quick reply and additional information provided.

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Thanks for hosting the spaces yesterday @boredelon and @Amplify. Listen only mode was my only option.

Also, thanks @RedVulkan for the marketplace comparative. Both were thought provoking; stream-of-consciousness reactions below.

Re: long-term vision. The long-term vision for ApeCoin DAO marketplace is to own the marketplace of choice for ecosystem assets, creator assets using ecosystem IP (e.g., Ape Worlds, Jenkins), and other interoperable assets, including those supported by improbable.io and other foundational platforms developed by the community. [FN1]

NFT Embed offers immediate ownership of the marketplace, eliminating counter-party risk.

Multi-chain support. The long-term vision must be cognizant of a marketplace’s ability to deploy on other chains.

NFT Embed plans to support Polygon next, planned for 2023. Going forward, NFT Embed will (presumably) support other chains based on demand.

Universe team is multi-disciplinary and has demonstrated an ability to safely deploy on other chains (as part of Universe or other projects). For reference, team members have deployed contracts on Polygon (Universe and BarnBridge) and Arbitrum testnet (Graviton), are migrating a DAO from mainnet to Optimism along with new tokenomics (BarnBridge), and have bridged a project from Harmony to Avalanche (Cheese Game). The team is closely aligned with Futureverse, whose substrate based, EVM compatible, xrpl-bridged L1 will be live on testnet soon.[FN2]

Marketplace risk: consumer habits. Consumers generally follow liquidity and from there gravitate towards lowest fees over time.

One proposal requests immediate funding for listing incentives. These types of incentives have been discussed at length by Universe DAO (on recorded team calls, discourse, etc.). General consensus is they can be effective but must be carefully designed and thoughtfully deployed so-as to deter mercenary capital. The Pareto rule of volume is a good target market, but need to consider price range with intent (or threat) of sale, listing duration, incentive period, and other metrics relevant to real user acquisition and habit changing activity.

ApeCoin DAO should pause any incentivization until a given marketplace achieves design and functionality preference.

Marketplace risk: liquidity. Several proposals plan to integrate reservoir. NFT Embed will integrate reservoir and gem (Universe has integrated with Gem in the past, pausing for marketplace redesign).

Systemic risk: security. Highly caution against launching a marketplace without an audit.

NFT Embed provides a trustless, audited marketplace.

Strategic relationship with Universe. With NFT Embed, ApeCoin DAO is aligned with a Universe team that brings a multi-discipline, cross-chain skillset with industry relationships that may benefit future endeavors beyond just a marketplace.

Our relationship began in May 2022, when Universe added $ape support on its marketplace.[FN3] ApeCoin DAO may consider a $ape for $xyz token-swap to further align our synergistic relationship.[FN4]

Potpourri. $ape subDAO staking in exchange for finder’s fee using veSPOOL model of fee accrual and vote influence, also signaling willingness to participate in marketplace decisions with possible incentives tied to good proposals and implementations following the aavegotchi model of xp? or maybe $ape staking unlocks gated marketplace with tiered-down finder’s fees based on thresholds of $ape staked? Lots of indirect ways to encourage marketplace adoption while driving utility to $ape.

FN1. Futureverse is building interoperable ecosystem assets and is closely aligned with the community and shares investor overlap with Yuga (Animoca Brands). https://twitter.com/dinosaurteef/status/1545155614854217729?s=11&t=WLU3etMvOSFlDcJzpFZBGQ

FN2. Universe is closely aligned with Futureverse. In fact, FLUF World may not exist but for the technology underpinning polymorphs. Lord of the Ty’s (:lizard:,:lizard:) on Twitter: “Soon https://t.co/bpmkpROI7N” / Twitter

FN3. Universe

FN4. https://twitter.com/reesistancee/status/1570110493443907584/retweets/with_comments

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Hello. I have a couple of questions on your proposal. NFT Embed is a product, so would the DAO need to have a working group to manage and utilize this? Or would it be managed by…?

At this time, there is no structure in place for this to happen. However, that’s changing but it will take time before it becomes possible.

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Long-term, yes a marketplace working group is preferred as the ecosystem and marketplace scales. This likely applies to all proposals as decisions about additional collections, etc., become relevant.

Short-term, ApeCoin DAO can deploy NFT Embed directly to its preferred domain in under 5-minutes. There are two major decision points within this deployment: collections and finder’s fee. The proposal suggests launching with ecosystem collections with an example 1% finder’s fee. Other suggestions above.

Because the DAO is not set-up to accept revenue: the proposal suggests 0% or 1% to philanthropic cause (e.g., GitCoin). Launching with 0% is optimal from a deployment and total fee perspective (0.30%). Next steps could be determined by the working group, including proposals or modifications of finder’s fee and recipient.

@DannyDesert, of NFT Embed, included an example link above:

@DannyDesert, is the deployment something NFT Embed could walk ApeCoin DAO through or otherwise assist with?

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I think this kind of product is really neat. There are some difficulties w/ how it will be managed. This could be made easier by committing a team to it. To give you more specifics, there isn’t an entity in ApeDAO that is setup to manage this. Administrators (Cartan Group) handle things like the proposal process & general operations, while Special Council handles high level tasks.

While I wish you luck, and wish I could contribute more, I think during phase 2, during questions w/ the mods, you’ll learn how difficult this really is. It’s not as simple as proposing a product to use & ApeDAO implementing it. There are security & update concerns, there are concerns w/ using domain, and ultimately it’s unlikely you can just say “someone in apedao will manage!”

You might consider seeking out a group within the DAO willing to run this. There are complexities to going this route also, however it’s the path that I forsee as being most likely to succeed.

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This is good context and will help me prepare for the next stages (and future participation, in general). There are several folks from the team that are DAO members: will start there.

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Hi @Marklar,

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.

-Pearson

Content with the feedback received.

Thank you @Marklar for your ideas and the ApeCoin DAO community for the thoughtful discussions. 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. @Marklar please see your messages for the next steps.

-Pearson

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