Proposal: Daily Owner Bag Auctions

[Peter_Watts]

When setting up the community-owned treasury for Loot Exchange, we borrowed heavily from the NounsDAO contracts. For those who don’t know, Nouns works by continuously auctioning 1 NFT per day, and pooling the funds in a community-owned treasury. This gave us an idea. What if a similar mechanism was used to auction off the remaining owner bags?

Here’s how it would work:

• A portion of the owner bags are minted and transferred to the auction contract
• The auctions are configured so that one finishes every day
• NounsDAO web app is forked to allow easy participation in daily auctions
• Funds from the sales go into a community-owned treasury

Why is this idea interesting?

• It can be built almost entirely from forked NounsDAO code, so there is low execution risk, and it can be implemented quickly
• It could raise significant funding for a community treasury, which feels like a worthwhile experiment to explore
• The slow drip avoids flooding the market. Besides, owner bags will likely be collected for their cultural significance, so will attract different buyers
• It’s an automated and credibly neutral way to leverage the owner bags, compared to trying to figure out how to distribute them
• Auctions are fun! And the Nouns contracts are already integrated with Party Bid, which would allow groups to form to buy Loot together

Of course, this proposal raises many questions, including how to spend the funds, but the goal of this post is to start a discussion and get an initial heat check.

There is also no urgency to implement such a proposal. But the main reason for bringing it up now is that it’s dependent on the fate of the owner bags. If they are burnt or distributed, we lose the opportunity to try such experiments.

Curious to hear what everyone thinks!

• Yes, this is worth exploring
• No, something else should be done with the owner bags
• No, owner bags should be burnt

[Minebuu]

I like this idea. Loot community can make a fund by selling unclaimed loot and then invest to loot-verse projects such as loot.exchange and loot-market.

[jmaier]

As an additional note, though we set up a treasury for LootExchange transaction fees, a bag auction doesn’t necessarily need to go to the same treasury. When we set up the LootExchange treasury, we explicitly wanted it to be “a” treasury, not “the” treasury.

[dom]

I quite like this idea. There is a big “if” which is whether or not the bags are burned, but this seems like a reasonable approach for the reasons you outlined. Assuming the (as of yet unproposed) LIP-2 is voted in favor of the bags going into a neutral multisig, a followup proposal to use some or all of the bags for this could make a lot of sense.

[Peter_Watts]

Sounds good. Yeah I mostly wanted to make sure that ideas like this were considered as part of the LIP-2 decision. Personally, it makes the case for neutral multisig stronger.

[timshel]

@Peter_Watts this is well written, well reasoned, clearly from a place of respect and long-term thinking

+1 to this beautifully simple and powerful idea

plus also @dom — i’m also a fan of you just minting the bags, keeping them/gifting them/vaulting them/auctioning them…and generally feeling “free to use them in any way you want.”

you’ve given us all a real gift, and this would set a nice precedent that creators are rewarded in web3

[NFTWiki]

This is the most sensible solution by far, and it’s safe and not quite risky to implement. I will definitely go for it with all my loot votes.