[SIP-1] The Burn

Author Contributors

Summary This proposal will establish how swept NFTs are “burned.”

Discussion Currently, 100% of aftermarket royalties are dedicated to repurchasing floor NFTs, then removing them from the circulating supply. As of October 2, 2022, the 0x000000004DFa9EE5293465C56f80069E82b740fa address currently holds 75 NFTs to be “burned.”

Option 1. NFTs shall be sent to the 0x000000000000000000000000000000000000dead address. Rarity and ranking trackers will not change. However, the transaction fee to execute each transaction is approximately 2-3 USD per transfer. At higher FPs, this fee will be largely irrelevant, but at current FPs, this is approximately 20-30 percent of total purchase price, which will reduce the effectiveness of the buyback flywheel.

Option 2. Burned NFTs shall remain in the 0x000000004DFa9EE5293465C56f80069E82b740fa wallet, and shall have their picture removed or changed to represent a “burned” NFT. Rarity and ranking trackers will not change. No additional transfer fees are required.

Option 3. Burned NFTs shall remain in the 0x000000004DFa9EE5293465C56f80069E82b740fa wallet, and shall have both their picture and their metadata stripped. This will change both rarity and ranking, effectively making floor NFTs more “rare” over time. No additional transfer fees are required.

Option 4. Burned NFTs shall remain in the 0x000000004DFa9EE5293465C56f80069E82b740fa wallet, with both picture and metadata intact. These NFTs shall not be transferred until the SophonDAO authorizes action on these NFTs, such as burning at a later date, or redistribution to Sophon holders.

Voting This vote will be a multiple-choice vote. You may select an option, above, or choose to abstain from the vote.