[PROPOSAL-004] Guru Network Economy Flywheel Launch

Summary

This proposal introduces a dynamic mechanism to foster sustained user engagement and economic growth within the Guru Network. At its core, the system enables users to earn points by completing ecosystem quests, which can then be exchanged for AI-generated GURU DAO NFTs.Those GURU DAO NFTs make users eligible for weekly Ecosystem Chest distributions and provide an initial balance of GURU tokens on GURU L3.These NFTs, priced at 400 GURU tokens, are subsidized by the Seasons Chest and create a cyclical flow of value in the ecosystem. Payments for the NFTs are distributed across key pillars of the Guru Network economy, supporting infrastructure, AI Processors Authors(for ex. Burning Meme), DAO governance, and a burn mechanism to ensure token sustainability.

Background

The Guru Network thrives on meaningful participation and decentralized governance, but sustaining engagement requires a carefully balanced incentive structure. By tying quest-based activities to AI-powered rewards, this system introduces a self-sustaining economy flywheel that continuously hydrates the GURU economy and empowers users.

The mechanism leverages:

• Quests: A gamified way for users to earn points through ecosystem contributions.
• AI Processors: Generative AI models, such as Burning Meme, to create unique NFTs.
• Seasons Chest: A subsidy mechanism to ensure accessibility for all users.
• Payment Redistribution: A decentralized approach to spread NFT purchase payments across infrastructure costs, AI processor authors, the GURU DAO, and a token burn.

Proposal

Core Mechanisms

1. Quest-Based Points System

• Users earn points by completing quests across the ecosystem, such as:
  • Using Guru-powered applications (e.g., trading automations, NFT minting, memecoin launching).
  • Engaging in governance and DAO activities.
  • Participating in marketing and community-building tasks.
• Points accumulate as users actively participate, enabling continuous progress toward AI-generated GURU DAO NFTs.

2. AI-Generated GURU DAO NFTs

• Cost: 400 GURU tokens, which users can finance using earned points or direct GURU payments.
• Utility:
  • Grants eligibility for weekly distributions from the Seasons Chest.
  • Provides voting power in the DAO.
  • Drives sustained engagement with the ecosystem.
• Subsidized by the Seasons Chest to make NFTs more accessible to new and existing users.

3. NFT Payment Redistribution

• Payments for NFTs are decentralized and split across four key areas:
  • Guru Network Infrastructure Costs: Supports network sustainability.
  • AI Processor Authors (e.g., Burning Meme): Rewards creators of generative AI models.
  • GURU DAO: Strengthens governance and future development.
  • Burn Mechanism: A portion of the payment is permanently removed, reducing token supply and creating upward pressure on GURU token value.

4. Seasons Chest Subsidy

• Weekly rewards from the Seasons Chest are financed by a portion of the GURU Ecosystem Treasury.
• Users completing quests contribute to the treasury's replenishment, ensuring a self-reinforcing economic loop.
• Subsidies encourage new users to participate and bridge their points into NFTs.

5. Burn Mechanism

• A portion of every NFT sale is burned, ensuring a deflationary effect on GURU token supply while incentivizing broader network participation.

Ecosystem Flow

1. Quest Participation:

• Users complete ecosystem activities and earn points.
• Points can be used to purchase GURU DAO NFTs, creating demand for GURU tokens.

2. NFT Creation:

• Points or tokens are redeemed for AI-generated NFTs, showcasing innovation within the network and rewarding user participation.

3. Payment Redistribution:

• Payments are distributed across infrastructure, AI processor authors, governance, and the burn mechanism.

4. Seasons Chest Rewards:

• NFT holders gain access to weekly distributions, funded by the treasury, driving further engagement.

5. Treasury Growth:

• The system ensures a continuous flow of GURU tokens into the treasury, fueling long-term development and rewards.

Pros

1. Continuous Engagement: Users are incentivized to remain active through quests and a progressive reward system.
2. Sustainability: Redistribution of payments supports key ecosystem components, including infrastructure and innovation.
3. Deflationary Dynamics: The burn mechanism creates long-term value for GURU token holders.
4. Accessibility: Subsidies ensure that NFTs remain within reach for most users, encouraging wider participation.
5. Governance Integration: NFT ownership ties users to DAO governance, promoting decentralized decision-making.

Cons

1. Complexity: Balancing subsidies, payments, and reward structures may require ongoing monitoring and adjustments.
2. Engagement Dependence: Sustained success relies on consistent user activity and ecosystem growth.

Conclusion

This proposal establishes a sustainable economic flywheel for the Guru Network by integrating quest-based engagement, AI-powered rewards, and decentralized payment redistribution. The system not only encourages meaningful participation but also aligns user activity with ecosystem growth and token value appreciation. Through this approach, the Guru Network positions itself as a leader in innovative Web3 engagement and governance models.