RR-1: Community Grants and Dev Funding

This vote will establish the amount of commissions buyers will pay to the platform. We will also set the primary and secondary sale commissions for the platform, assessed from the sellers.

Summary

Last week, we kicked off the discussion about funding the platform development and community grants on https://gov.rarible.com. The initial discussion by the community can be seen here. We considered all suggestions community made: the most popular ones were 10% for the primary market and 5% for the secondary market. Please note these fees are split between both buyers and sellers. (total for buyers and sellers). Now, the exact commission needs to be decided on for each type of marketplace participants. From the suggestions made, we calculated that would approximately make 2.5% buyer fee, 7.5% initial seller fee, 2.5% secondary sale seller fee.

There are 3 separate voting proposals created to vote on:

• Commission paid by buyers Ther buyer pays the price of an item plus the buyers fee on top. The buyer's fee is the same for all purchases.

Example: if the item costs 100 ETH, and the buyer fee is set at 2%, the buyer will pay 102 ETH.

• Commission payed by sellers for primary sales When minting an item on Rarible and making the first sale of this item on Rarible, the seller will receive the price of the item minus the first sale seller fee.

Example: if the item that costs 100 ETH, if the buyer fee is set at 2%, and the first sale seller fee is set at 2%, the creator will receive 98 ETH.

• Commission paid by sellers for secondary sales In case of other sale of an item except the first sale of an item minted on Rarible (e.g. sale of an item created not on Rarible; secondary sale of an item created on Rarible), the seller will receive the price of the item minus the secondary sale seller fee.

Example: if the item that costs 100 ETH, if the buyer fee is set at 2%, and the secondary sale seller fee is set at 2%, the creator will receive 98 ETH.

Description

The fees are introduced as a step towards the final goal of creating Rarible DAO and decentralizing the platform.

The core goals are:

• Reduced wash trading Introdicing fees will eliminate incentives for wash traders. If someone makes a fake trade for 100 ETH, once the fees are established, he will have to pay (e.g.) 2.5% buyers fee and 2.5% sellers fee which totals over 1,8k USD. As our community helps us identify wash traders, he won't receive any $RARI –– but will pay a fee for his trick.
• Community grants A part of the collected fees will be allocated for grants to support artists, active community members and grants for improvements (3rd party offers on making something useful for the community).
• Ambassador program A part of the collected fees will be allocated to the users bringing $RARI to the world: brand promotion and other ambassador activities.
• Dev funding Project development takes a lot of time & resources. Fees will let us facilitate sustainable development and make the platform better.

Funds distribution & storage

The commissions collected will be securely stored in a cold wallet in full custody of the team.

At this stage, the commisions will go to:

• Financing project development
• Community grants that are subject to the governance process (the community will decide who receives the grants)
• Ambassador program

Allocation of funds among community grants, ambassador program and development funding will be determined by the team.

Voting period

The voting is takes place from 12 Sept 2020 to 19 Sept 2020, and might be extended if consensus is not reached.

Options:

Option 1: Commission paid by buyers 0%, commission payed by sellers for primary sales 10%, commission paid by sellers for secondary sales 2%

Option 2: Commission paid by buyers 2%, commission payed by sellers for primary sales 7%, commission paid by sellers for secondary sales 2%

Option 3: Commission paid by buyers 2.5%, commission payed by sellers for primary sales 5%, commission paid by sellers for secondary sales 2.5%