[BIP-12] - The Basis Cash NFT Program

[BIP-12] - The Basis Cash NFT Program

Authors: @Rooster_Cogburn77, @BasisCucumber

Summary

• A limited run of 10 Basis Cash NFTs will be minted and auctioned.
• Each NFT will be entitled to 0.01% of BAC Seigniorage for life.
• Resurgence, the first in the series, is being auctioned for charity.
• Sale proceeds from the remaining 9 NFTs will be used to market buy BAC, thus supporting our return to peg.

Motivation

As NFT utilization and use cases grow exponentially in the space, the Basis Cash community has developed another unique use case that will benefit the protocol and its users. The NFT will serve to commemorate the transition to BasisV2 , as well as economically incentivizing the NFT holder and the protocol itself. Proceeds from the initial NFT sale will be utilized to market buy BAC, which will assist with the efforts to return to peg; while recurring economic incentives will accrue to the NFT holder.

NFT sales have exponentially increased this year, but activity has not increased at the same rate, indicating that market participants are seeking quality over quantity. Innovation in the space is increasing at even higher rates, and the demand for NFTs with real world utility, adding layers to the NFT beyond art, is growing. The protocol must take into consideration which factors will provide a valuable use case, spurring demand for the NFTs. By economically incentivizing the NFT holder (via 0.01% of BAC Seigniorage to the NFT for life), we provide true value in holding this series of NFTs, beyond riding a hype train. The limited nature of the NFT release (10 in total) assures scarcity and should lead to a relatively high level of demand from long-term believers in the protocol.

The current BAC circulating supply is approximately 58M. Below are the projected BAC rewards per NFT at increasing levels of supply:

• 100M : 42K BAC
• 200M : 142K BAC
• 500M : 442K BAC

Each NFT represents a long-term bet on Basis Cash with a perpetual income stream once the protocol returns to expansion. At a total cost to the protocol of just 0.1% of future seigniorage plus production costs, we believe that such a program is justified and will broaden our reach to the NFT community, while also providing early supporters a way to showcase their faith in the future of Basis Cash.

Specification

• The CDF will fund the design, minting and marketing of the NFT program.
• NFTs will be auctioned and the proceeds used to market buy BAC. Pricing and release schedule will be determined by the team.
• A staking UI will be created for NFT owners where they may claim their BAC rewards once we return to peg.
• NFT holders will be eligible to access a special role and private lounge in Discord.
• Purchased BAC will be retained in the CDF, and may be used for various purposes that will be addressed in future BIPs.