| Author | mallarduck |
|---|---|
| Status | Proposal |
| Type | Discount payment with $rare |
| Implementor | SuperRare |
| Created Date | 02/03/2021 |
Title - Discount payment with $rare
Summary - Enable payment in $RARE, giving 3% discount to buyers who pay in $RARE rather than $ETH pay artists full $ETH-based amount due, in $ETH from Treasury.
Motivation - Put $RARE in Treasury, reducing supply [on the market and making it easier] to reward DAO participants [in $RARE]"
Specification – What I’m imagining right now is that all prices, reserve prices, auction bids, and records of previous sale prices remain in ETH. When a buyer reaches the payment/settlement step, however, SuperRare would display (1) the current dollar value of the price in ETH; (2) the average dollar value of 1 ETH over the duration of the auction or posting of a piece; and (3) using that average dollar value, an alternative price in RARE, calculated as follows:
((Average dollar value of 1 ETH during auction or period since initial posting of piece × price of winning bid or buy-now price in ETH) / average dollar value of 1 RARE during auction or period since initial posting of piece) × .97 [reflecting 3% discount to incentivize buyers to pay in RARE, thereby reducing circulating supply].
This does require using a reliable oracle and price history to determine the average prices, but it doesn’t require much in the way of difficult calculations otherwise. Of course, the SuperRare system would do this calculation for the buyer, making clear how it arrived at the quoted price in RARE (including the 3% pay-in-RARE “discount,” for which I’d like to find more elegant wording.).
Again, none of this would affect the amount artists receive in payment as a result of any sale, nor would it even change the currency in which artist are paid ($ETH) In fact, no one except for the buyer, the Super Rare sales system, and the DAO Treasury would even know what the sale price in RARE was. (It would, of course, be available for all members of the DAO to see.) A payment in RARE also should have no effect on future royalties for the artist, the collector, or the DAO Treasury, all of whom would be paid in ETH based on the ETH sale price. The only change to the sale history that some people might want to see is an asterisk or other subtle indication that an ETH amount listed in a price history was actually paid in RARE. But I’m not sure how important this is (and would like to hear people’s thoughts on this issue, especially.).
The system I envision makes the most sense for primary sales, and I’m limiting the proposal to that for the moment. Even among primary sales, I wouldn’t necessarily enable the option in “Make An Offer” scenarios, unless it was clear to everyone that the same condition above – that ONLY SuperRare and the buyer see the amount of RARE paid, and everyone else see only the ETH and be paid in ETH-based amounts – applied.
I might include a safety valve that causes the RARE price to disappear as an option where there has been a dramatic change in the price of RARE, or where the equivalent of “slippage” would be too great for the DAO to accept.
Finally, for a variety of reasons, including keeping the total number of RARE at an even billion ,I am not inclined to suggest burning the RARE received. That would render the RARE tokens to be vested a greater percentage of the existing tokens, which could be problematic, and it could make the DAO less able to handle needs as they arose. One of those needs, for example, might be providing compensation in RARE to people rendering valuable services to the DAO, ideally through a vesting schedule (something beyond the scope of this proposal, at least for now.)
Benefits - The net result of this is that the Super Rare DAO would be effectively be using a portion of its ETH balance to buy back RARE off the market. Reducing circulating supply.The $rare token in the treasury can be distributed to staking people.
Drawbacks - There may not be enough ETH left in the treasury. And DAO can sell RARE for ETH at strategic moments.(I am waiting for your offers on this subject).