[SIP-27] Strategic Partnership Between SuperRare and Transient Labs to Energize Ecosystem

• Author: @chrisTL (Transient Labs)
• Status: Proposed
• Type: Treasury Management
• Implementer: RareDAO Council & RareDAO Foundation
• Sponsors: @Emma, @flakoubay
• Forum link
• Created Date: January 28, 2025

Due to Snapshot's character limit, this proposal has been summarized. Please click the forum link above to view its full text.

Summary

This proposal seeks RareDAO’s approval for a strategic investment in Transient Labs, securing approximately 10% ownership in the company. Through this partnership, Transient Labs will enhance the creator tooling and technology stack for the SuperRare ecosystem, replacing SuperRare’s existing minting infrastructure and integrating advanced creator-centric solutions. This collaboration positions the DAO for long-term growth by expanding revenue streams beyond marketplace transactions and strengthening the utility of the $RARE token.

Motivation

SuperRare’s strategic commitment toward a highly curated marketplace requires an ecosystem that fosters long-term, value-driven art. By partnering with Transient Labs, SuperRare will be able to offer a seamless creator journey from imagination to curation. This initiative directly addresses:

• The need for sophisticated, sovereign creator tooling and infrastructure.
• The demand for a meaningful, quality-driven cryptoart experience.
• Diversification and expansion of the DAO’s revenue
• Increased surface area for $RARE utility within the ecosystem.

Goals & Objectives

1. Strengthen SuperRare’s Curation Model: Provide an elite pathway for creators to transition from an open marketplace to curated status.
2. Enhance Creator Lifecycle Support: Integrate Transient’s tooling (Dynamic Art Engine, The Lab, Launchpad, AI Discovery) to empower artists.
3. Boost $RARE Token Utility: Deep integration of $RARE into ecosystem functions, encouraging long-term engagement.
4. Increase Platform Awareness and Adoption: Strategic community growth and targeted market positioning.

Financial Overview

If approved, the following parameters will be used to execute an investment agreement between Transient Labs and the RareDAO Foundation:

• $2.5M equivalent investment, paid in $RARE (price calculated by a TWAP) into Transient Labs, Inc. as a SAFE 2 amounting to a ~10% ownership stake
• 51% / 49% (TL / DAO) protocol fee split up to $5M cumulative revenue paid to the RareDAO community treasury
• Limits on diversification / distribution of invested tokens as negotiated by RareDAO Foundation on behalf of the DAO to limit sell pressure
• Conversion to equity upon Series A or qualified financing.
• Licensing agreement for Transient-developed IP to be used across platforms.

Upon passage of this proposal:

1. RareDAO Foundation and Transient Labs will finalize and execute the investment agreement, including the calculation of a 60-day time weighted average price (TWAP).
2. RareDAO Foundation will work with the DAO Council to transfer the invested assets, as calculated in the TWAP, to Transient Labs.
3. Transient Labs, RareDAO Foundation, and SuperRare Labs will collaborate extensively to manage execution of the vision and roadmap outlined above.