BIP 4: Badger NFT Rewards

BIP | Badger Improvement Proposals
1

Category: Emissions
Scope: Rewards for those who sacrificed yield for NFT community building.
Status: Rejected

Overview:

$bBadger and $bBadgerwbtc holders sacrificed rewards to participate in Badger-themed MEME NFT community building event.

It is still ongoing. At present, the following is staked on the NFT farms,
0.000384354729052644 bUNI-V2 (over $50,000 value)

and

41,819 bBadger (over $500,000 value)

Badger stated that NFT holders will get APY boosts (https://twitter.com/BadgerDAO/status/1338135475379449857)

This BIP proposes a reward framework for NFT holders.

Details:

There are 6 $MEME Badger-themed NFTs.

They can be farmed here:


https://dontbuymeme.com/collections/badger_lp (SOLD OUT)

Or acquired on the secondary market, including total amount and number remaining at time of post:

Mt Gox - 500 (490 remaining)
HODL - 500 (488 remaining)
Pizza - 100 (90 remaining)
Silkroad - 100 (72 remaining)
BTC Whitepaper - 10 (SOLD OUT)
Satoshi - 10 (SOLD OUT)

The secondary market has been active, including a 21,000 USDC purchase of the Satoshi card. Badger NFTs account for 3 of the top 6 MEME NFTs by marketcap (https://niftyrank.com/). The community building has been strong.

My proposal is that for each unique NFT held, the account holder gets a 5% boost on rewards. This 5% should not compound, but be additive. I propose these boosts are implemented in the Week 4 emissions (December 24th) and continue throughout the 10-week Liquidity Mining schedule, for both $badger and $digg.

Rewards Received per unique NFT held:

  • 1 NFT - 105% Rewards
  • 2 NFT - 110% Rewards
  • 3 NFT - 115% Rewards
  • 4 NFT - 120% Rewards
  • 5 NFT - 125% Rewards
  • 6 NFT - 130% Rewards

I initially set this at 10% per NFT, but changed it down to 5% so that numbers do not skew too wildly. Many NFTs still remain available to give everyone a fair chance to mint an NFT to earn an APY boost. The more rare NFTs are available on the secondary market if any users want to maximize their APY boosts.

Implementation:
Subject to approval there is work that would need to be done to bring this to reality. As for technical implementation, it is not my area of expertise, so I would wait for the team to comment on the difficulty of this change.

All voting will end by Noon EST December 22nd to give the operations team enough time to implement for week 4.

Implement these reward boosts?
  • Yes
  • No

0 voters

1 Like
2

Thank you for your proposal @bajja. Due to the lack of analysis and frameworks for how you arrived at your boost percentages, I am against this proposal.

Any boost to APY from NFT tokens should be carefully considered and impacts assessed. With your proposed framework, I suspect that this will only spike the price of the NFTs themselves and not further the sustainability of the DAO or of the economics of the $badger tokens themselves.

I am open to providing benefits for badger NFTs in the future, but until we determine a robust framework or at least consider the impacts of benefits and how it affects the economics/game theory, I am hesitant to support.

I welcome the community to voice their opinions on how we might best structure our approach here.

2 Likes
3

Well, if the intention of the proposal is to compensate for the yield that was sacrificed for mining NFTs compared to staking Badger, wouldn’t an airdrop suffice?

I think the DIGG airdrop to meme minters will do the job with no additional work required.

I don’t think that being the first to mine an NFT should grant you the right for eternal rent at the expense of other participants.

This proposal disproportionately rewards less than 10 people who were the first to mine the LP memes.
And it’s reasonable to assume that they don’t need additional rewards, given the prices of those on the market.

In general, I’m against introducing preferential treatment without tradeoffs and value provision.
So the rewards proposed look disproportionate to me.

2 Likes
4

I aree with Mr_Po and his logic is sound. Indeed, there should be some calculation done for sacrificing bbadger staking yield for NFT minting. For example, 200bbadger = ~216badgers. At the time of this post that would be 12.78 x 216 = ~2,760 USDC. That would equate to ~1.5 badgers per day if staked in badger pool. If someone had the holy meme grail while staking at max, it would take ~3.33days (20 pineapples/ 6perday) to obtain the 100s NFTs. You would then multiple 1.5badgers per day x 3.33 days = ~ 5 Badger tokens. Now that doesn’t seem much for the price of badger right now. but consider the future value of badger. Also the exclusivity of the NFTs and the promised utility of them. I don’t have a proposal on how NFT holders should be awarded, but just simply wanted to lay out the mathematics involved if the reward was purely for compensating opportunity cost of stake yield. I do think that the early participants should be rewarded in some way, however, but a fair judgment to not be eternal rental at the expense of others. Disclosure: I don’t have any LP NFTs. I want them though :stuck_out_tongue:

1 Like
5

It seems to me this was primarily a marketing event. It brought in MEME users/viewers, allowed for additional social media presence, drummed up a slight buzz, etc. The grand prize of 2500 badger was a nice carrot to chase, but that was only even possible by arguably a very select few. Did the event have the intended effect? Did we gain additional eyeballs/users/interest/investors? Sure hope so!

As for potential rewards, I completely agree these should not have a perpetual bonus. That is simply not sustainable and frankly a bad precedent in the grand scheme. Would I like to see a bonus come my way for holding some cards, of course, but I’d much rather see a little bonus given to ALL the NFT holders, even if just as a way to recoup some of the opportunity cost minting meme pineapples rather than badger. This contest was started and ended with zero confirmed promises that the NFT would have any benefit beyond that grand prize, so we all entered eyes wide open before any of these rumblings starting coming in from various founders/mods/etc in discord. Even if we don’t apply an ounce of reward to these NFT, I still had fun chasing the grand prize and coming up short. Maybe that’s a minority opinion amongst NFT holders.

If there is a decision to apply a little bonus in any form, there is still ample opportunity to get 1+ of these cards. As of this post, there are only 27/1000 and 67/200 minted for the remaining cards. Even a 100 badger stake when the meme pool opened without the meme grail card would be able to mint an x/100 card by today, and half that for a x/500 card, so these NFT are still very attainable for a small opportunity cost.

Brainstorming beyond these cards and outside the scope of this discussion, I really do like the concept of NFT’s hidden attributes driving real word use cases and hope we can find ways to leverage this concept in the future, if not with this initial round.

2 Likes
6

I don’t think NFT players should loose their staking, but you offer golden coins for all of time that offer a lot of extra APY.

I would be in support of minting a new NFT/coin for players who had staked significant amounts in the NFT contest to let them reenter the badger/uni pools at a 1.5x reward or something that would catch them about back up for the time lost. The condition is that it would be usable once and burnt.

This seems more fair.

2 Likes
7

Is this really going to be voted in?

1 Like
8

I agree, the framework and analysis, should be taking into greater consideration. I seen a user, purchased the Satoshi LP NFT for $21,000 USDC, another user 10 eth. I read in the chat mentions about higher apy’s boost, $digg airdrop, etc, so thats why they purchased the NFT for so much money. I think its good marketing to make good on those promises, and keep good faith within the community. I also think that The LP NFT’s were rare only 10 minted, so it be unfair to give The bBadger NFT the same weight. I seen baja mention each nft should receive 105% boost, But i think we should calculate the weight of each NFT, meaning the scarcity. I don’t think a common NFT that minted 500 copies, should have the same value, as an NFT that only minted 10 copies, and sold for as high as $21,000usdc. we have to take that sale price into consideration as its important to maintaining the market cap for the NFT. just my 2 cents

9

I’ve since revised it.

I think each NFT group should get the same $DIGG airdrop bonus.

Let’s imagine it’s 1.2% of the airdrop.

Each group gets 0.2%

So the Satoshi and Whitepaper would only have to split their 0.2% with each of the 9 other holders.

The Pizza and Silkroad would need to split their 0.2% with each of the 99 others holders.

The Mt Gox and Hodl would need to split their 0.2% with the 499 other holders.

I don’t know if 1.2% or 0.2% is the right number, but it should be an amount that fairly represents the fair value of the NFTs. As you said, people were buying them for 21,000 USDC and 10 ETH because they were under the impression Badger was going to give APY boosts and airdrops based on their prior messaging.

2 Likes
10

Your calculations looks accurate . I’m no expert at this but, I think the numbers as far as weight and distribution shouldn’t be emphasized as much the use cases and utility of the NFT in the future. I’m imagining having ranks and guilds for NFT holders like teams. Imagine , ethereum miners and bitcoin miners have special NFT where they dont pay any gas fees, or get special discounts when using an exchange or AMM. Games like Pokemon and Yugioh could have been more popular if users can authenticate the cards, and have the blockchain to verify authenticity of the cards etc… same concepts goes for art… The airdrop is just an incentive for early adopters. What matters are the use cases, and this will inherently bring intrinsic value to both the NFT and Badger DAO as a whole. People buy Yeezys because of Kanye, not because of Adidas . Badger X Kayne Nifty :rofl:

1 Like
11

@bajja thank you for your submission and starting some discussion. That is highly appreciated.

However, this BIP is being closed and rejected for the following reasons:

  1. It did not meet quorum. 57% of 58 is a) not majority and b) only 33 yes votes
  2. The point of a BIP is to have community consensus on a concept and its actionable implementation steps either by calling specific functions that have been built or laying out the steps necessary to build those functions. This BIP does not provide these details or resources to implement
  3. Rewards for NFTs are in the works and are being discussed in other BIPs ($DIGG discussions)

Please don’t let this be a discouragement for your future BIPs, and consider how you might incorporate these points of feedback into your future proposals - Thanks again!

2 Likes