[SQR-004]: Change in the Magic Store Membership Program

Introduction to Magic Square DAO

Magic Square is a comprehensive Web3 ecosystem that empowers projects and users to connect and thrive through its innovative Web3 App Store and Launchpad. The $SQR token powers the ecosystem, offering utilities for users and projects. With the DAO, the community can participate in shaping the future of the platform and the $SQR token. Voting power is determined by your staked and held $SQR, as outlined in the Magic Square DAO Documentation. Engage in discussions on this and other proposals in our Discord Community.

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Proposal Overview / TL;DR

This proposal seeks community input on changes to the Magic Store Membership Program, designed to reward loyal users with additional benefits in the Magic Square ecosystem. To adapt to current market conditions and the $SQR token price, the community has suggested three alternative models. This proposal will allow DAO members to vote on which one to implement.

The changes will not affect current eligible upgraded members who will receive loyalty benefits without additional action. The change will apply only to new users or non-eligible members.

Refer to the Magic Store Membership Documentation for details on the current membership structure.

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Proposed Options

Option 1: Raise the $SQR Locking Requirements

• Keep the current membership mechanism where users lock $SQR tokens.
• Increase the amount of $SQR required to be locked for each membership tier to account for market conditions.
• Benefits:
  • Maintains the same model for simplicity.
  • Directly impacts $SQR utility by requiring higher locks.

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Option 2: Introduce a Subscription Model

• Transition from locking $SQR tokens to a USDT-based subscription (monthly/yearly).
• Use a percentage of the USDT collected to buy back $SQR, increasing its utility and demand.
• Benefits:
  • Creates a predictable revenue model.
  • Dynamically ties membership fees to market conditions.
  • Supports $SQR price with regular buybacks.

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Option 3: NFT-Based Membership Model

• Conduct a snapshot of existing upgraded members based on their tier and conditions.
• Issue free-mint NFTs to existing members to represent their membership tier.
• Future memberships require:
  • Trading of NFTs on the marketplace or participating in periodic paid-minting events.
  • Commissions on NFT sales/mints will include a percentage used to buy back $SQR.
• Benefits:
  • Introduces membership as an asset that users can trade.
  • Creates a new revenue stream via NFT sales and trading commissions.
  • Enhances $SQR utility through buybacks.

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Loyalty Reward for Current Members

• Current eligible upgraded members will be rewarded with loyalty benefits, ensuring they are not disadvantaged by the transition.
• These members will not need to take additional actions to retain their membership.

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Voting Options

Members may vote between the following options (or abstain):

1. Option 1: Keep the same mechanism but raise $SQR locking requirements for each tier.
2. Option 2: Transition to a USDT-based subscription model with $SQR buybacks.
3. Option 3: Transition to an NFT-based membership model with trading and minting mechanisms tied to $SQR buybacks.
4. Against: Reject all proposed changes and maintain the current membership model.
5. Abstain: No opinion on the proposal.

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Summary and Call to Action

This proposal outlines potential updates to the Magic Store Membership Program, allowing DAO members to choose the best path forward. Each option provides unique benefits, ensuring the program remains aligned with market conditions and supports the growth of the Magic Square ecosystem.

Review the details and cast your vote to help shape the future of the Magic Store Membership Program.

For further discussions, join our Discord Community.