Reduce Royalties to 2.5%

The royalties discussion has been going on for quite some time with many strong opinions. What is clear from Fat Cats holders is that philosophically most of us think royalties should exist and that since all royalties go towards the DAO treasury we are a unique situation. That said the winds of change are blowing fast and optional royalties are becoming the marketplace norm. The recent MagicEden & Blur announcement & opening respectively has solidified the situation for now.

To that end the council is united in its feeling that we should lower our royalty to 2.5% for three core reasons. Firstly though Fat Cats is a collectors club we have always tried to take the best practices from Web2 and in particular the financial industry. Though royalties as high as 10% are normal in Web3 they are certainly not common in the fund management space, defi or fintech. This will send a strong long-term message about what we are aiming to build and align ourselves with the greater financial world.

Secondly we wish to remove barriers of entry for as many people as possible that might want to give Fat Cats a try and who want to be honorable when they buying into our ecosystem. I.e. a person purchasing for 0.1 eth who knows that they can recoup close to that amount should they desire to sell soon after buying is more likely to purchase and test it out.

Lastly we wish to send a strong message that although we will work hard to be a self sustaining ecosystem that profits from our investment and arbitrage choices we do strongly support royalties and take all revenue streams seriously. At our current volume 2.5% royalties would still amount to 0.2-0.3 ETH range and during periods of higher volume or when we have project releases such as Junior Fat Cats we could expect solid revenue opportunities.

it is important to note that we will likely revisit this question a few times in the future. The beauty of our DAO is that very little is cast in stone and we can always vote in the future to increase or decrease. In addition as we explore the creation of Sub DAOs focused on other asset classes such as crypto currency hedge DAO we will have the opportunity to set royalties for each of those accordingly.