What type of Utility should we give our upcoming 'fr0xers' NFT collection?

Over the past few days, important discussions have taken place through our communications channels regarding the economic and utilitarian aspects of the NFT collection 'the fr0xers'. Numerous ideas have emerged, and although they differ from one another, they all point in the direction of giving NFTs utility and enabling the treasury, and therefore the project, and therefore the holders, to advance more rapidly towards the Roadmap objectives. As each idea has its share of pros and cons, this proposal is intended not only to reach a decision via a vote, but also to serve as a reminder of the elements discussed for those who were unable to take part in the conversations.

First, a quick reminder of the things we unanimously agree on:

• Each NFT will be designed by FrankieWilde.
• Collection will have a 1000 supply. We reserve the right to expand the supply later on if Gen1 is a success, demand is there and the math is mathing.
• NFTs will provide access to web2/web3 services based on the rarity of the NFT, adding value and a greater sense of belonging to the community.
• Funds raised by the sale will go entirely to treasury and will enable us to execute the roadmap higher, wider, faster! (Hi Equalizer)
• We'll be able to flex hard!

Let's turn now to the ideas we've been studying:

1. The NFT will act as a multiplier factor for the revenue distributed by the treasury to $fr0x stakers -> Holder impact: impacts reward distribution for $fr0x holders as NFT-holders get their rewards perpetually boosted at the expense of non NFT-holders. Imbalances in reward distribution can be greatly increased by a multiplier (both whales and shrimps being in the same pool can get the small players crushed, which is not desired) -> Treasury impact: none. -> Dev impact: Computationally heavy as contract will have to know every single holder's fr0x+NFT position before distributing rewards to anyone. Potentially creates security issues and smart contract risk.

2. A lottery with fr0x prizes based on rarity at mint -> Holder impact: only minters get $fr0x token prizes, dilutes non-minters and secondary buyers for both $fr0x supply and rewards. This makes the utility punctual (at mint date) instead of perpetual -> Treasury impact: has to give a share of $fr0x tokens away that could be used for future LP funding. -> Dev impact: Easy to implement

3. A reduction in the fr0x buy/sell tax based on quantity held. This allows NFT holders to get in and out of their $fr0x position at a reduced cost -> Holder impact: NFT holders benefit from a perpetual discount on buys/sells tax. Favors traders, not diamond hands. -> Treasury impact: This discount is a net loss for treasury revenue. -> Dev impact: Easy to implement

4. NFT Gated staking pools (Preferred by Team): NFT give possibility to arbitrage better APRs. We open several pools (for example 3) which access is restricted by the amount of NFTs you own. This would segregate users into 3 categories:

• No NFT,
• 1+ NFT,
• 10+ NFTs. (criteria and # of pools are subject to change) Each pool having their own APR, they do not interfere with others. This is a hybrid solution that allows us to keep control on reward distribution as we balance APRs over time and make sure the distribution is fair to everyone. This is the solution that we consider the fairest for both fish (whales will not be in their pool sucking them dry reducing their APR), whales (they get their own pool they only have to share with a select number of players therefore generating a higher APR), as well as non-NFT holders. If we were to notice severe imbalances we get to tweak numbers and restore balance in the force. -> Holder impact: only competes with people from the same category. Gives a chance to NFT whales to enter a less populated pool without crushing non-holders and single holders. -> Treasury impact: None -> Dev impact: Easy to implement, has to create 3 sub-vaults within the Reward vault.

Thank you for reading through this proposal, this matters a lot to us as we want to keep you informed of our thought process, design options and technical challenges. Our main concern is the user experience from the shrimp to the whale, from our Day 1s to those who don't know about us yet.

fr0xMaster, Michael and Frankie The fr0x Capital team