GM58.1 : gm.token V3

Author:

Ze_Boubs

Proposal date:

03/15/23

Summary/Rationale:

For several months now, one of most significant sources of revenue (creator royalties) has been circumvented by new marketplaces in the NFT landscape, bypassing royalties by leveraging clever loopholes in the seaport contract in which most of the platforms are built. The royalty change favors traders at the cost of creators & greatly impacts our long term sustainability. While the gm.studio has been able to adapt and evolve to this situation by using upgradable contracts for the last 2 releases, gmDAO itself has seen its creator’s royalties quickly declining towards zero.

Creator’s Royalties previously served as the “membership fee” once joining the DAO, and meant that the flow of new members would feed the community treasury for the purposes of :

• Paying full time contributors with functions that support the DAO
• Paying part time contributors for AD hoc requests
• funding community initiatives such as gm.erch, gm.press, gm.Studio, gmTezos, gm.consulting or gm.incentive program in the future.

All these expenses benefit the members both directly & indirectly.

In order to maintain our ability to enforce royalties, we are proposing a migration to an upgradable contract which will allow us to block platforms that attempt to circumvent royalty payments.

A migration would also future proof the DAO tokens from any emerging platforms that attempt that take a similar stance to blur, giving us the ability to block new contracts as & when needed.

Specifics:

Migrate GM.V2 tokens to a GM.V3 contract. The GM.V3 contract shall be upgradable, which will allow us to allow/block any marketplace’s contract in the future. This way, we’ll be in the position to specifically block contracts that don’t enforce royalties.

GM.V2 collection historical stats would be migrated to the GM.V3 contract on OS, thanks to the direct line we have with them. The GM.V2 contract would also be deprecated on OS to avoid confusion. In any case, the migration would not be time limited so anyone would always be able to upgrade their GM.V2 to a GM.V3.

We’d be incentivizing people to migrate by conditioning any utility to the ownership of a V3 token, such as discord access, gm.erch and gm.studio whitelisting/rebate utility.

Contributors : Willyham has offered to create the GM.V3 contract under his gm.studio time. We’d also have a front-end page on the gmDAO website for an easy and understandeable migration.

We’d like to budget a 5K additional cost in the case we’d need to pay another contributor, for front-end/design/marketing/communication purpose. Should we not need this specific budget, this allocation would be retained in the multisig.

Pros:

Royalties back into the community treasury. Runway goes up, yield goes up, sustainability is improved.

Cons :

Confusion of having a new contract.

Maintenance of old collections (GM.V1 and GM.V2).

Payout recipient:

TBD.

Payout amount:

Max. 5K$ ( 0.84% of treasury at this time).

Sponsors:

Ze_Boubs, Cyphr