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