We want to create an ecosystem to facilitate the development of metaverse projects. It’s based on Adventure Money – an inflationary governance token aiming to be used as the currency of funded projects. Projects promising to utilize Loot and Adventure Money will be able to raise funds through the DAO grants or the crowdfunding platform.
Many builders and creators are putting in the time and effort to build a wide array of projects for the Loot ecosystem. Many more contributors are probably unable to contribute their time due to a lack of funding. We think that Adventure Money’s model would fuel new endeavors faster and more sustainably than funding through donations, the best alternative we have now.
Another motivation is the need for currency for many metaverse applications. Most metaverse applications will have a currency for trades. If this currency were a USD stablecoin, changes in the metaverse’s popularity would create many arbitrage opportunities. If this currency were AGLD, most of the items in the metaverse would be similarly decreasing in price because AGLD supply will stay the same, whereas the metaverse’s value would usually grow. We think that Adventure Money’s DAO could change the supply of new tokens like a central bank; therefore, the price changes of the metaverse assets denominated in Adventure Money would be minimal in general. This would create more stable economies for the projects.
- Adventure Money tokens will be supplied to the projects through grants and the crowdfunding platform.
- These projects will incorporate Adventure Money and bring utility to the token.
- The DAO will have 10% of the tokens created in its treasury to be able to issue grants forever.
- Whereas the DAO-funded projects will be projects that will reflect the general Adventure Money holder’s preferences, a crowdfunding platform will allow projects to be targeting niches.
- Projects applied for crowdfunding will be filtered by the DAO and made available for fundraising.
- Projects will sell future benefits for Adventure Money investment.
- This mechanism brings another utility to Adventure Money.
Adventure Money is an inflationary ERC-20 governance token to vote on governance decisions, fund projects, and be used as a currency by the funded projects.
1,000 AMNY could be claimed for Loot bags. A maximum supply of 8,000,000 AMNY will be available through claims.
Adventure Money is also going to be distributed via depositing Loot NFTs. The emission will be approximately 8,000,000 Adventure Money per year.
Soon after the launch, the DAO will decide whether to open pools for AGLD, mLoot, and other tokens. The DAO will also be able to change the emissions of 8,000,000 tokens per year.
The DAO is the governing body of the platform and the AMNY token.
AMNY token is used to vote on decisions such as:
- Token economics: emissions, incentives, distribution mechanics, treasury management
- Grants decision making
- Crowdfunding management: Listing, dispute resolution
- Development of new features
- Development of products on the ecosystem
DAOs are like subreddits with bank accounts. To be useful, the DAO will require a source of income. This will be provided by a 10% cut from all issued AMNY tokens, either through claims or farming rewards. The DAO could also change this 10% amount.
Adventure Money could issue grants for public goods or the general benefit of Adventure Money holders. The only requirement will be integrating with Loot bags and using Adventure Money as a currency.
The crowdfunding platform will be named Lootpad. It is a launchpad-esque platform to bootstrap new projects for the metaverse.
Projects that seek funding can apply for listing on Lootpad and raise capital for their projects. The platform will provide funding like Kickstarter, allowing projects to define their backer tokens and their associated AMNY costs. The platform will issue these backers NFT tokens to the backers without any additional effort from the fundraising project. Backer NFTs will have the project’s identifier, the tier, and the unique identifier of the token itself.
Projects can incentivize their backers to promise rewards for their backer tokens in the future. These could be NFTs they promise, such as items, characters, badges, cosmetics, special passes, etc., or other means of exposure to their project’s success. These incentives would not only allow raising seed capital but also bootstrap a community for the project.
At launch, projects could write smart contracts to issue promised rewards to backer tokens without any intermediaries.
We think that a shortcoming of this design is that it requires depositing Loot bags and other metaverse assets, reducing their liquidity.
Another shortcoming is the concentration of Adventure Money supply to investors instead of metaverse participants as described by Vitalik Buterin: Moving beyond coin voting governance
We hope that the DAO decides to solve both of these issues when they arise with no-stake farming in the future.
Even further, the Adventure Money DAO could evolve into a more decentralized form by whitelisting many metaverse tokens and NFTs, allowing them to vote, deriving voting power from the market prices of the assets in question.
Since the first days of the Loot adventure, we have been following the incredible progress of our community. As builders ourselves, we have been brainstorming and prototyping ideas for the Loot metaverse for about 2 weeks now.
0xCagin and I think that this design is exciting and solid enough to get your feedback now. Looking forward to hear your constructive criticisms!