Funding Stream for Merch Team

Proposal

Funding Total:

$27,000 USDC // 10,000 $KRAUSE

Funding Breakdown:

• Core team
  • @whereisomar, @fetti, @donsnacks
  • 6,000 USDC / month ($24,000 USDC / 4 months)
  • 10,000 $KRAUSE to be distributed through Coordinape Gift Circle determined by project leads
• Fashion designer/Illustrator
  • $3,000 USDC
• Milestones:
  • 10,000 additional $KRAUSE distributed to the contributing team if a current/former NBA player wears KH merch! Stewards team will determine eligibility. NBA player must be wearing KH merch from this collection by end of year (December 31, 2022).

Merch Team Responsibilities:

• Vendor evaluation and selection
• Concept design ideation
• DAO participation/vote coordination
• Production management
• Merchandise sale and delivery

Specification:

• This proposal does not include production costs as final concepts are still being designed and ultimately voted on by the DAO. Exact production costs will be presented in a subsequent proposal.
• KH Treasury will front production costs and will receive 100% of revenue for the first production run.

Protections:

If at any time during this project there is insufficient participation or there is likely to be a material change in the intended outcomes, the project lead(s) will proactively work with the Stewards Team to: reduce budget, adjust scope, or if it’s deemed to no longer fit the spirit and intent of the original proposal, gracefully wind down the project. At any point, the Stewards Team may terminate this project for violations of Jerry values. Members can at any time terminate this project by means of formal proposal duly passed by snapshot vote.

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Detailed Proposal

WEN MERCH?!

Over the last couple of months, the core Krause House merch team, namely, @whereisomar, @fetti and @donsnacks, have been working on coordinating all of the efforts required to deliver Krause House’s first limited merchandise run in time for NFT NYC (6/21/22 – 6/23/22). We’ve locked down a world class vendor with access to premium fabrics and materials. Members will have first dibs and will be able to pre-order merch (early June) as well as purchase IRL at NFT NYC.

KH Merchandise for our first run include: t-shirts, athletic socks, mesh basketball shorts, hats, hoodies, headbands, and a jersey collab with Metafactory all leveraging the latest KH brand assets! We’ve been using the merch channel to solicit community feedback and vote on what items ultimately get produced. Jersey vote is now live (April 7th deadline). We’ll be announcing the vote at KH Town Hall.

• KH treasury will front production costs and will receive 100% of revenue for the first production run. The merch team has modeled several scenarios and anticipate a negligible profit or break-even outcome. In future production runs, we’ll experiment with different methods of compensation: $KRAUSE, USDC, XP, rev/share, etc.
• This specific proposal is to fund the merch team and a subsequent proposal will come in a couple weeks with exact production costs.

What has the Krause House Merch team been up to?

In anticipation of NFT NYC in June 2022, the team has been working on the following:

Research:

• Held exploratory conversations with several vendor suppliers (e.g., Metafactory, Fancy, Degen Supply, Decentraland, etc.)
• Developed an evaluative framework to analyze vendors based on a number of factors including: business model, access and/or ability to procure high-end materials, technical know-how, manufacturing partnerships, pricing, production capabilities and timeline.
• Explored metaverse shopping, i.e., what does it look like to build a KH merch shop on Gather or Decentraland? (ongoing)

Operations:

• We created two categories of merchandise:
  • Essentials: Include KH basics, uniform and everyday wear
  • Capsule: Focuses on delivering a unique piece or pieces that commemorate NYC’s rich basketball heritage and memorializes the NFT NYC 2022 moment
• Identified a NYC-based designer to develop the KH Essentials and Capsule collections
  • Briefed the designer and are co-creating a mood board to inspire the designs
• Working with the KH brand team for jersey concepts inspired by NY basketball culture
• Partnering up with Metafactory to deliver jerseys by NFT NYC 2022

Logistics:

• Submitted formal RFQs to potential vendor partners

So, what’s next?

We are now waiting on our potential vendor partners to respond to our RFQs. Once we have those in-hand, we will be submitting a subsequent proposal that details the following:

• Production details
  • Items
  • Budget
  • Timeline
  • Tax/Accounting
• Designs
  • We’ve briefed a NYC based designer and are waiting on Mood Boards. Once we have designs fleshed out the DAO will vote on what items get produced.
  • We will be leveraging the latest KH brand assets.
• Fulfillment
  • We intend to set up a Shopify store with 3PL so we can fulfill merch orders
  • Merch team will have an IRL activation for NFT NYC

Scope of Work:*

Vendor(s) selection – completed

Design ideation – in progress

DAO participation/vote – next step

Production management – next step

Merchandise delivery and sale – next step June 21-23rd.

*Note: This is intended to be a high-level illustration of the overall project’s steps. A subsequent proposal will be submitted for the production phase.