UPDATE:
The summoning and launch of SwagDAO has been suspended for the time being as we are exploring the potential legal implications of a revenue generating, product sales DAO. The team at openesq.tech have independently been pursuing the launch of uniswag.io based on the Unisocks code base and experiment that was run previously this year. Due to this, they have also already addressed challenges specific to eCommerce product sales including wholesale product purchases, 3D printing, fulfillment, shipping, etc. SwagPOW will partner with them to handle general product fulfillment and back office needs, as well as to explore the legal possibilities around how we can allow individuals to invest / share in the profits of a DAO-operated eCommerce store. This project gives us a chance to explore the legal possibilities around revenue generating / profit sharing DAOs in a more controlled format.
Aspects of the below proposal have been removed or modified to reflect these changes.
SwagPOW
WHAT: SwagPOW is a Swag Sales Platform (eCommerce site) where sales are conducted via Bonding Curve Auction + Battle Mechanic. It will be the underlying platform that powers the emergent SwagDAO.
HOW: Leverage meme energy and competitive, FOMO3D-like game mechanics to increase FOMO and entertainment value / hype.
WHY: Improve industry/ team swag designs and develop increased community engagement and culture across Ethereum.
DETAILS:
SwagPOW is seeking a grant / membership pledge from MetaCartel to help subsidize the initial platform build and signal in support of this initiative.
Funds will be deployed to develop the initial SwagPOW MVP that will include an eCommerce storefront powered by a bonding curve battle auction with swag price dropping over time (lowest price near end of the auction).
Auction length determined by consumer interest with each new purchase resetting the sale timer for a short duration. This approach is akin to FOMO3D gambling / gaming mechanic where jackpot winner is based on the last person to purchase a ‘key’ with each key purchase resetting the expiration timer for a short amount of time.
Two products (shirts) will be up for auction at any one time. All users initially pay full price, but winners will be credited with a refund once the auction / competition is over. Both shirt designs will be created and ship to purchasing users, but only ONE of the designs will ‘win.’ Profits from the losing shirt design will subsidize the early buyers of the winning shirt design. Losers pay $MSRP, while winners will only pay $COGS plus operational overhead costs and any agreed upon profit / sustainability cut for the platform. Early buyers will receive a refund / percentage of the later buyer’s purchase at the completion of the sale/competition.
Sales/design competition will initially start at 30 days. Each purchase will add 24 hours (TBD) to the sale timer and total duration.
Nice to Have: Each item sold will come with a unique NFT that represents that specific swag purchase. Secondary market sales will be hosted on SwagPOW platform and conducted via sale of NFT claims. For a limited period post initial auction (14 days?), purchaser can choose to list their claim and resell apparel to FOMO buyers who missed the auction sale. Claim sales and fulfillment / shipping of apparel after the authorized period is the sole responsibility of the individual member.
EFFORT:
Discovery: Model and define mechanics of a basic sale (without battle mechanic) including:
- Start price
- Price limit (Lowest price we’re willing to sell)
- Price drop over time
- Correct % revenue share that buyers get over time
- Battle mechanic modeling
Execution: Encapsulate discovery and final mechanics in solidity with final front end design
- Contract code
- Consumer frontend (design/build)
- Battle Mechanic: Head-to-head gaming mechanic
TOTAL TIME: 8 Weeks
COST:
Development: $6K USD
Design: $1K USD
TEAM:
Ross Campbell, Robert Leonhard, Josh Ma (Primal/Open Esquire Team): Legal & Fulfillment
Keisaku + Tom Nash (Flex Dapps): Development
Ven Gist: Design
Darren Mills: PM
Eric Chung & James Waugh: Mechanics
Drew Harding: Janitor
You: ???
PROFIT/SUSTAINABILITY:
Team has initially discussed a small revenue cut (~5%) hardcoded into the platform that will go back to the MC / SwagDAO for funding the initial development of the platform and also to cover ongoing labor / operational / fulfillment costs. This is one of the questions that we intend to pursue and answer with the Open Esquire team.
Sales priced in DAI, but held in cDAI/rDAI allows platform to earn interest while competition is ongoing and sale in concluded.
EXPERIMENTATION:
This platform allows for experimentation and learning around revenue generating & profit sharing DAOs. Our hope is that SwagPOW will inevitably be run and executed by a DAO itself, but we need to explore the potential implications and restrictions. We anticipate that this will also inform MetaCartel’s own direct interest in forming a revenue generating DAO in the near future.
The platform also provides opportunities to explore traditional (banner / side bar), as well as crypto native (click here / watch this video for 1 DAI off your purchase) advertising opportunities.
Most importantly, it is an opportunity for meme lords and crypto influencers to explore Ethereum through the lens of fashion and culture. How can we cultivate community beyond the tech?
