LIP-15 FINAL: Change Collection Royalties

LIP-15 FINAL: Change Collection Royalties

Author: Ethlizards Team Date Created: 27th March, 2023

ABSTRACT

This document proposes a change to collection royalties of the Ethlizards Genesis V1 and V2 collection royalties fee.

MAIN CHANGES

Collection royalties of the Ethlizards Genesis V1 and V2 collection royalties from 7.5%, lowering it to 5% or less to align with industry standards.

RATIONALE

Current Ethlizards Genesis V1 and V2 collection royalties are 7.5% This is well above the market average for projects in a similar category. This 7.5% rate is high enough that it discourages some from trading these collections or they may instead choose to to OTC deals to avoid these fees all together.

After reviewing around 30 similarly positioned different projects, we found that ~96% had collection royalties from 3% to 5%. Additionally, when speaking to advisors and leaders from other Web3 and NFT projects, as well as our own community, the consistent recommendation was 5% or less. This proposal seeks lower these royalties to 5% or less, in the best interest of the DAO and it’s NFT holders. With this change, we aim to encourage trading volume, while keeping the fee low enough to capture the royalties from majority of trading activities.

NEW VOTE TYPE - RANKED CHOICE

Note: This is the first time the Ethlizards will use Ranked choice voting (Instant Runoff Voting), so please take the time to read how it works. You can also ask for help in the governance-talk channel on Discord.

Ranked Choice Voting Explained (Instant Runoff Voting)

Pros: Favors the option with the strongest support and reduces wasted votes. Cons: A bit more complex to understand. Will only determine one winner, (doesn’t work well to select 2 or more winning options).

• Each user has to rank all choices in a desired order from favorite to least favorite.
• In the first step votes are counted for each voter's number one choice. If a choice receives more than 50% votes (cast on number one choices of each user), that choice wins. The result will show the percentages reflecting how users voted for their first choice only.
• In the second step if the first-choice candidate doesn't get over 50% of the total votes the choice with the fewest number one votes is eliminated. Voters who had chosen the defeated choice as number one now have their number two choice counted as their number one choice.
• The process continues over multiple rounds until a choice has more than half (> 50%) of the total votes.
  • Some options will show up as if they had not received any votes because they were eliminated in the ranked-choice voting process.

CHOICES - Rank each choice in order from your most preferred as 1, to your least preferred as 6.