[SQR-002]: Adding Magic Raffles to the Magic Store

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 is an integral part of this ecosystem, powering various functionalities and providing utility for both projects and users. This DAO enables the community to actively participate in decisions impacting the platform and the SQR token’s future. Voting power is calculated based on your staked and held $SQR; refer to the Magic Square DAO Documentation for more details. Join the conversation around this proposal and other key topics in our Discord Community.

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Proposal Overview / TL;DR

This proposal seeks DAO approval to introduce Magic Raffles as a new feature in the Reward Pools section of the Magic Store. Magic Raffles will allow users to purchase “Entry Tickets” using SQR, USDT, or SQRp Points from their MagicID balances. All SQR spent on tickets will be burned after each raffle concludes, creating a deflationary effect.

Additionally, Magic Raffles will provide an expanded utility for SQRp Points, allowing users to redeem them in a meaningful way beyond their current applications. Rewards from the raffles will be distributed directly to the user MagicIDs and will include either SQR or USDT. The planned release date for this feature is mid-December 2024, depending on DAO approval.

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Reason for Action

1. Enhanced Utility for SQR and SQRp Points

• Expands the use cases for SQR and provides a dedicated utility for SQRp Points to win rewards.
• Offers SQRp Points holders additional value through raffle participation.

2. Token Burn Mechanism

• Introduces a deflationary model by burning all SQR spent on raffle tickets after each raffle concludes.

3. User Engagement and Incentivization

• Encourages participation in reward pools, hot offers, and other campaigns to earn entry ticket currencies.
• Increases user activity on the Magic Store by providing an engaging and rewarding feature.
• Upgraded Magic Store account members will receive free entry tickets every month to participate in raffles, depending on their tier.

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Detailed Plan

1. Magic Raffles Feature Overview

• Magic Raffles will be part of the Reward Pools section in the Magic Store.
• Users can purchase entry tickets using one of the following options:
  • SQR or USDT: Earned through reward pools, hot offers, Magic Board, or campaigns, or by manually depositing USDT or SQR to the MagicID.
  • SQRp Points: Earned by staking SQR, upgrading Magic Store accounts to Plus, Premium, or Premium Plus, and actively participating on the platform.

2. Participation Mechanics

• Users select the raffle they wish to join and purchase tickets using SQR, USDT, or SQRp Points.
• Rewards from raffles will include SQR or USDT and will be distributed directly to the users’ MagicIDs.

3. Token Burn Mechanism

• All SQR used to purchase raffle tickets will be burned after each raffle, reducing the circulating supply and increasing token scarcity over time.
• If the reward is in USDT, the tickets purchased in USDT will first cover the reward amount. Any surplus from the ticket sales beyond the reward amount will be split as follows: 50% will be kept as company revenue, and 50% will be used for a buyback and burn of SQR, further supporting the deflationary model.
• This process is subject to change based on the reward size and ticket purchase volume. In the future, a fully automated process will be implemented for ticket purchases and automatic buybacks and burns.

4. Timeline and Implementation

• The Magic Raffles feature is planned for release in mid-December 2024, pending DAO approval.

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Voting Options

• Members may vote between the following options (or Abstain):
  1. For: Approve the release of Magic Raffles as described above.
  2. Against: Do not release the Magic Raffles feature.

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How Will Magic Raffles Affect Me as a SQR Holder and User?

Magic Raffles will not require any mandatory participation or impact your existing holdings. However, they will provide additional opportunities to utilize SQR, earn rewards, and benefit from a deflationary model through token burns. Active participants in the Magic Store and Magic Launchpad will see increased value for their engagement.

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Summary and CTA to Vote

This proposal presents an opportunity to enhance the Magic Store by introducing Magic Raffles, which provide new utility for SQR and SQRp Points, engage users with rewarding activities, and integrate a token burn mechanism. Review the details of this proposal and cast your vote to shape the future of Magic Square.