Integration of GBM Auctions in Decentraland’s Marketplace

by 0x89a1d730aa1e78a0ede8dea988acecff0a6e99a9 (Szjanko)

Summary: The proposal suggests implementing GBM Bid-to-Earn auctions within Decentraland's marketplace.

GBM Auction is a gamified auction mechanism where bidders make money if they are outbid. This can be in $MANA or whichever currency the auction is listed in and the percentage can be customizable by the auction creator.

For sellers this would incentivise users to participate and boost price discovery. GBM’s existing partners have seen a 200% increase in sales price.

For bidders & the community it would make use of the marketplace more rewarding and engaging where they either win the item or make money. Everybody walks away with something.

GBM has completed over 70,000 auctions and is working with The Sandbox, Rarible, Unstoppable Domains and Aavegotchi just to name a few. The founders are fully doxxed and have been working in the blockchain space since 2018, whilst being involved as early as 2013.

Hugo McDonaugh, CEO, DCL Username ‘ObiWanKenobi’ - https://www.linkedin.com/in/hugomcdonaugh/

Edouard Bessire, COO https://www.linkedin.com/in/edouardbessire/

Guillaume Gonnaud, CTO https://www.linkedin.com/in/guillaume-gonnaud/

Case Studies:

• Aavegotchi Experience: Implementing GBM auctions led to a 160% increase in revenue. Aavegotchi's platform offers both a traditional P2P marketplace and GBM auctions (Aavegotchi Auctions).
• Song A Day’s Success: Transitioning to GBM auctions tripled their revenue in 100 days. High-profile endorsements, such as from Brian Armstrong, CEO of Coinbase, highlight its effectiveness (Brian Armstrong Tweet).
• Other collaborations include Sandbox, Upland, and most recently with Unstoppable Domains, where again the asset sold for more than 100% higher than when English auctions were used.
• An empirical study also proved how the GBM auction system has a higher first bid, higher bids overall, a higher selling price, a higher revenue for the seller, fewer bids and takes less time to reach its final bid than an English auction — all other things being equal. You can find it here: https://drive.google.com/file/d/1r-Z8xS1MenfWrPwpXqpoQ0pkGjGqv5Cm/view?usp=sharing

Statistics:

• GBM auctions have successfully completed over 70,000 auctions
• Had over $200m in volume run through their bidding engine
• Generated over $54 million in revenue for their partners,
• Bidders across the world have earned over $6 million in incentives

Integration Process: The integration of GBM's dApp is a straightforward process, taking approximately 1-2 days for basic setup, where the customizable GBM dApp is used as the auction house and hosted by Decentraland as a subdomain. Alternatively, a more advanced implementation where GBM is integrated into the existing Decentraland marketplace itself, offering deeper customization, would require around 1-2 weeks of development time.

Either option would include free white glove service and support from the GBM team working with the DCL devs for the smoothest possible integration.

Fee Structure: There is no upfront investment required. No fixed costs or monthly running fees. GBM charges a 2% fee only on sales made through GBM auctions. Fixed-price sales and other non-GBM transaction methods are exempt from this fee. Full project management support also included.

Links: GBM Website: https://www.gbm.auction/

GBM Auction Deck : https://docs.google.com/presentation/d/1jrxCZWzxIi3kB63yuMVGXsBK2yU_z1NrhmkehCNfJHg/edit?usp=share_link

Decentraland demo: https://www.loom.com/share/17a10b9f893045c78eec311ff442e8b9?sid=584be386-dd72-4198-9749-3e544fb36b71

Voting Options: This poll seeks the community’s opinion on integrating GBM-style auctions into Decentraland's marketplace. The three options for this poll are the following:

1. Full Integration of GBM Auctions: This option proposes to fully integrate GBM auctions into Decentraland's marketplace. Under this model, GBM auctions would be integrated into the existing marketplace infrastructure which currently does not have auction capability. This approach aims to create an incentivized and dynamic marketplace with everything in one place. Users can still opt for existing sales mechanisms if they wish, GBM is just another option for them. Implementation support is included for free from the GBM team. Please see following mock-up of what it could look like:

2. GBM Auctions as an Additional Option: This choice suggests adding GBM auctions as an alternative alongside the existing marketplace structure. The Decentraland branded GBM dApp would act as a stand alone auction house, but still hosted under Decentraland's domain. It provides sellers and creators the flexibility to opt for either the traditional method or the GBM auction model for listing their assets and is also a lighter lift development wise. Implementation support is included for free from GBM team. Please see following video which shows exactly what this could look like: https://www.loom.com/share/17a10b9f893045c78eec311ff442e8b9?sid=584be386-dd72-4198-9749-3e544fb36b71

3. No Integration: The third option is to retain the current marketplace model without integrating GBM auctions. This choice favors maintaining the existing system without introducing the new auction mechanism.

• Yes, Full Integration of GBM Auctions into the marketplace
• Yes, Add GBM Auctions dApp as a stand alone Decentraland auction house
• No Integration
• Invalid question/options

This proposal is summarized due to technical limitations. To view it complete and vote on it, visit the DCL DAO Governance dApp