CoreProp: Launch Haunt 2

Author: Jesse | gldnXross#6482 Gotchi ID: 4563 End Date: July 26, 2021 at 0:00 UTC Quorum: 20% (9.38M) Discourse Thread: https://dao.aavegotchi.com/t/coreprop-launch-haunt-2/2034

Problem being addressed: Accessibility to the Aavegotchi platform. Currently Aavegotchis are limited by a maximum possible 10,000 because only that many Haunt 1 Portals exist. This makes acquiring a first Aavegotchi cost prohibitive. a second Haunt of 15,000 more Portals, we aim to address this problem while respecting unique, collectible aspects of Haunt 1 Aavegotchis.

Our vision is for far wider adoption of playable NFTs, and the first step to achieving that means leaving the scarcity memes behind and focusing on being able to offer meaningfully unique experiences to more people.

Solution: We are suggesting it is the right time to introduce a second Haunt of 15,000 more Portals in Haunt 2. We aim to address the accessibility problem while respecting unique, collectible aspects of Haunt 1 Aavegotchis.

So today, we are launching the Haunt 2 CoreProp, open for voting on this extremely important topic over the next 7 days. The proposal maintains all of the original Haunt 2 SigProp’s key details with one new bit of added langauge:

CoreProp Amendment 1/1

Because rarity farming seasons are primarily funded by Portal NFT sales, the H2 SigProp needed to address reward distribution adjustments. This CoreProp maintains the same cap increase (Season 1’s 1.4 million GHST increased to 2 million GHST) but with one explicit caveat:

The rewards cap is completely amendable by the DAO and we encourage more proposals for what the Season 2 revenue cap should be (before or after any Haunt 2 auction).

Many community members have expressed that they would prefer the Rarity Farming Rewards Cap to be decided later, so we are honoring that by encouraging the community to put forth some Signal Proposals on this issue. The DAO is encouraged to deliver an AGIP that can change this cap.

*** Unchanged Haunt 2 Proposal Details ***

How many Portals? --- 15,000 Portals (each Portal summons one Aavegotchi) --- Each Portal contains 10 potential Aavegotchis Stake what tokens to summon? --- Polygon Aave.com amTokens What Spirit Forces are completely new? --- WBTC, MATIC and WETH designs + GHST (pending listing on Aave.com) How will Portals be distributed? --- 80% will be listed in a GBM bid-to-earn style Aauction --- 20% will be raffled How does Haunt 2 relate to Season 2 of Rarity Farming? --- 40% of total Portal revenue will fund the Rarity Farming rewards pool. --- 2 new “Rookie Season” leaderboards will be added for Kinship and XP (see below) --- Season 2 reward distribution caps at a maximum 2 Million GHST --- Any additional GHST in the pool will be reserved and staked to earn more for future seasons. --- Top 5000 in each of the five categories will farm GHST

There are key changes since the last time we voted regarding a potential Haunt 2:

• Our home network, Polygon, has exploded in popularity.
• Significant progress on the Pixelcraft Studios dev roadmap.
• The release of details regarding The Gotchiverse Realm.
• A new NFT drop method, powered by bid-to-earn mechanics.

There are specific differences between H1 and H2 Aavegotchis

• Exclusive, non-transferable H1 backgrounds for all H1 gotchis
• Two eye shape traits reserved exclusively for H1
• Two new eye shapes added for H2

PROS:

• Greatly increases accessibility
• Drives interest preceding the launch of REALM
• Demonstrates a successful "supply by consensus" model
• Introduces new mechanics re. Rarity Farming

CONS:

• Risk is inherent to each in every product launch
• Potential exists to misjudge supply and demand
• Certain collectors strategies may not align with this approach
• H2 Revenue Distribution

The original Haunt had a revenue split that included a massive 33% GHST token burn (along with 40% player rewards, 17% Pixelcraft income and 10% DAO funding). In retrospect, we found that such a significant burn was not the best use of capital. Lessons learned include:

Dampened effect: The unique nature of GHST token (asset backed by DAI and minting/burning on a bonding curve) means burning has minimal impact on volatility.

Opportunity costs: This massive amount of value burned could have been put to work on behalf of Aavegotchi. In one example, a certain leading exchange offers an OTC desk product to high net worth individuals and institutional investors. We were approached to have GHST offered in their catalog, but in order to do so, a minimum stake north of 1 million GHST would be required. By providing that GHST, we would be exposing our token to larger scale investors and also could earn a decent percentage return for simply providing the tokens on a long term loaned basis (not selling them). If we hadn’t just lit our GHST on fire, we would have had the reserves to execute on this sort of opportunity.

War chest: Finally, Pixelcraft and AavegotchiDAO are extremely ambitious organizations facing their own unique challenges in regulations, taxation, and scaling. For example, potential taxation on a 33% token burn represents a significant risk factor for Pixelcraft Studios. Even if sailing is smooth, a strong war chest helps both Pixelcraft and the DAO continue healthy growth while remaining independent. While flexible and open to strategic partners, we’d rather not have to ever be in a position where we feel we must sell out to outside parties.

Marketing campaigns: Ticket giveaways are a great way to drum up interest in Aavegotchi, but since we are committed to not “pre-minting” any tickets, they must be earned by staking just like everyone else. Having more GHST to stake allows us to generate more tickets which can be used for strategic marketing campaigns and airdrops to help grow the #GotchiGang!

These are some of the main reasons we are advocating for an adjustment to the virtuous cycle to go along with any new Haunt being implemented. The new breakdown greatly reduces the burn while increasing distribution to Pixelcraft Studios and AavegotchiDAO as well. We believe the 40% rewards pool has proven very successful and should remain the same.

The proposed distribution goes as follows: Rewards pool = 40% Pixelcraft Studios = 40% AavegotchiDAO = 15% GHST burn = 5%

In conclusion The growth of the Gotchi economy means that digital scarcity has its place but is not the ultimate goal. We are offering a carefully balanced approach with unique attributes retained for Haunt 1 Aavegotchis while also expanding accessibility and user growth as we barrel toward The Gotchiverse Realm and wider awareness and adoption of playable NFTs and DeFi.

Thank you for your consideration and vote, no matter which direction!