[GIP#0001] Introduce DA, Staking and new revenue sharing model

Summary

The GEN.ART team is proposing the introduction of Dutch Auction drop mechanics that incentivizes early mint participants and a new ecosystem between artists, platform and community. Moreover the team is proposing to build a staking platform that incentivizes members who stake their Memberships and $GENART tokens.

Abstract

Our proposal aims to attract GEN.ART to a larger range of users (also outside the Membership model). The proposed Dutch Auction is motivated to benefit early mint participants and gives collectors a tool to value the art on secondary markets. We think that building more utility around our drops will drive higher values for GEN.ART Memberships and $GENART tokens. Currently, the drops are all fixed priced and only offered to members. This proposal introduces more game theory in the whole Membership model and gives the ability to offer drops to the public.

Motivation

The motivation is to create synergies between artists, members and the platform. Members would like to stake $GENART to be rewarded with proceeds from mint. They would also like to participate early in a dutch auction if they get refunded a portion of the amount they spend if the average selling price at the end of the auction is lower than their buying price. The benefit for artists would be that their art might be valued higher by collectors and sell out early at higher prices. This will also imply high potential interest in the secondary market. There is a clear incentive for all parties.

Specification:

External Google doc

For:

DAs and staking should be implemented to drive more interest in GEN.ART. Revenues are shared reasonably between artists, the platform and Governance token stakers.

Against:

Introducing staking, changing the pricing model and sharing revenues with stakers cuts too much off of artists' revenue share. Hence artists will go to other platforms.