When SquiggleDAO launched in 2021, our vision was to create a vibrant community that collected and celebrated what we believed would be a very important piece of art history.
Over the last year and a half, we’ve seen validation our thesis around the Chromie Squiggle. Collectors in Web3 and beyond have realised the importance of on-chain generative art and they see the Chromie Squiggle as the seminal collection. Holders are holding, collectors are collecting.
Over that time, the Core Team supported a community, launched revenue generating products, and acquired the 4th largest Squiggle Collection. But at the end of the day, we’re utilizing limited Treasury assets. If we’re going to collect 1000 Squiggles and be at the centre of Squiggle culture, we’re going to need a lot more resources and creativity to get there!
At the heart of this community is our token. It facilitates governance, provides access and rewards contribution. It is through our token that our creativity and effort align. But a community token needs to do a lot more than that. It needs to be a manifestation of our vision; a token that members are proud to own and make them feel connected to each other.
An ERC-20 simply cannot accomplish that, so we are proposing that the DAO convert to an NFT as its primary token.
First, and foremost, we want membership in our community to mean something. We’re on an adventure together, and creating social bonds between community members allows our efforts to have more impact. Ownership in a collectible unlocks this capability because collecting is one of the oldest social behaviours that we have. We’ve seen this work really well with other communities such as PROOF, Kraushouse and believe it will be the future standard for all digital communities.
Second, it means that our token will become liquid. This has been a challenge since the beginning, because providing liquidity on an ERC-20 is very expensive and the investment in capital needed doesn’t accrue any value back to the DAO. New business models become available for the DAO to operate safely in existing legal frameworks. And with liquidity, we can onboard new members to our community.
- Swap to an NFT membership card at a 1000 SQUIG to 1 NFT ratio
- This NFT would be a PROOF-style membership card and include 7.5% royalty, paid to the DAOs treasury
- Depreciate the SQUIG ERC-20 as our governance token
- Migrate existing SQUIG token rights to the NFT
The team proposes that eligible wallets with 50-999 SQUIG be airdropped a one-time amount bringing the balance of that wallet to 1000. The goal here is to be more inclusive with NFT membership. Many of these wallets represent early contributors and we feel that it is important to include them. A snapshot of wallets was taken on October 18th at 13:00 UTC and will be used to determine eligibility and amount for this part of the proposal.
Wallets with excess amounts (eg. 1100 SQUIG = 1NFT + 100 SQUIG) will be able to utilize AMMs or OTC trades to acquire or divest from those amounts. The DAO cannot participate in these transactions, but we will assist members as much as possible so that the transition is safe and easy.
The ERC-20 to NFT conversion experience will remain active for a long period of time (years), ensuring that nobody misses the upgrade
- Tokens that are locked or pre-allocated will be able to use the upgrade experience when they become available
Using an NFT is actually the best approach for providing needed liquidity to the DAOs token, because it doesn’t cost the DAO anything to support. Trading will be available on OpenSea as soon as the token is registered.