Purchase of LAND in Genesis City

by 0x8218a2445679e38f358e42f88fe2125c98440d59 (1010)

Linked Pre-Proposal

Should the DAO Buy Back LAND?

Summary

This draft proposal is to advance the purchase of LAND in Genesis City.

Abstract

4 polls were conducted to determine 3 key objectives:

1. Whether the community agrees to buy LAND in Genesis City. The community voted 'YES' (95%)

Refer to Annex (1)

2. Whether to buy the cheapest on Marketplace, or to create a price formula. The community voted 'Buy cheapest at marketplace' (61%)

Refer to Annex (1)

3. The parameters for purchasing LAND. The community voted to purchase LANDs that are 4k MANA and below(70%), at a monthly spending cap of 40k MANA or less(67%), and to give contiguous LANDS/ESTATE priority(76%)

Refer to Annex (2-4)

Motivation

The DAO has been having ongoing discussions as to whether LAND should be purchased and repurposed for the past year, in order to provide valuable content as opposed to LANDs being left barren and used purely as a speculative instrument. It is after numerous discussions that the community has decided it is best to purchase LANDs for purposes that will be agreed upon at a later date.

This bear market has also brought about a unique opportunity in which LAND value has reached fair to under valuation, and it is prudent for the DAO to make purchases of LANDs/ESTATEs now rather than during a bull market where valuations can go beyond what is deemed reasonable for purchase.

Specification

The monthly purchase process of LAND/ESTATE has to fulfil 5 criterias.

1. Adhere to a price ceiling of 4k MANA per parcel

Annex (2)

2. Adhere to a maximum monthly budget of 40k MANA.

Annex(3)

3. LANDs which are contiguous and priced at or near floor(a leeway of +10% above floor price during the time of purchase) will be given priority. Only LANDs/ESTATEs which are evenly shaped(1x2, 1x3..., 2x2, 2x3.., 3x3, 3x4.. and so forth) will be considered. If no such LANDs/ESTATE exists during the time of purchase, LANDs at floor price shall be purchased.

Annex (1) and (4)

4. Purchase is to be made at the end of each month, at any point in the day(GMT), at the discretion of the DAO Committee.

5. All purchases are to only be made with MANA. Purchases can be made on both Opensea as well as the Decentraland Marketplace.

Conclusion

In light of Genesis City LANDs/ESTATEs being underutilised and the floor price reaching an "undervalued/fairly valued" valuation, The DAO has come to a decision based on discussions and finally a poll, to purchase LANDs/ESTATEs for repurposing.

The purchase agreement will follow parameters that have been agreed upon by the community to ensure prudence in expenditure.

The purchase and ownership of LAND/ESTATEs will expand the DAO capabilities in 5 ways, primarily:

1. To organise events/activities such as town halls etc.
2. Generate passive income to the DAO by rentals.
3. Provide LAND to grantees who require space to deploy.
4. Allow the DAO to create scenes all over Genesis City that may lead to a better experience for users, such as kiosks that may provide ‘ATM’ services etc.
5. Possibly used as rewards/prizes for any events organised by the DAO.

Annex (1) - Should the DAO Buy Back LAND? https://governance.decentraland.org/proposal/?id=e62c2260-bdd1-11ed-8c13-518b5c1940be

Annex (2) - the ceiling price PER PARCEL allowed by the DAO to purchase from the marketplace. https://governance.decentraland.org/proposal/?id=c66846e0-d9a4-11ed-bfff-7567e61aeee0

Annex (3) - The total amount of MANA that the DAO is allowed to spend MONTHLY on purchasing LAND. https://governance.decentraland.org/proposal/?id=cd5e1640-d9a5-11ed-bfff-7567e61aeee0

Annex (4) - Whether contiguous LANDs should be given priority. https://governance.decentraland.org/proposal/?id=47f1c960-d9a6-11ed-bfff-7567e61aeee0

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