Author: choobie, Project Lead at Botto
Status: Sponsored | Consensus Passed
Implementer: SuperRare DAO
Sponsor(s): John Crain
Link to Temperature Check Poll: Discord
Created Date: 02/06/2022
Summary: SuperRareDAO should perform a token swap between SuperRareDAO and BottoDAO to support a mutual partnership around developing artists on SuperRare and diversify one another’s treasuries.
Abstract: Botto is a decentralized autonomous artist (DAA), connecting Art (NFT) with Capital (DeFi) and Community (DAO). Botto works in collaboration with a community of stewards who vote on its generated imagery to decide what is art. This community of stewards is collectively known as BottoDAO.
Since Day 0, SuperRare has been home to Botto’s art and success as a DAA, and its community of collectors have driven it to become an All Time Top-10 artist on SR. Currently, Botto’s artwork proceeds pay for Botto’s costs, including the creative labor of its voters. Botto uses the votes to evolve its aesthetics and develop as an artist over time, with the aim of becoming the first world-renowned DAA. Botto’s decentralized economy of incentives that sustains its autonomy is enabled through the $BOTTO token. The token gives holders the ability to vote and govern Botto.
This proposes that BottoDAO and SuperRareDAO perform a token swap of their native protocol tokens. Such a token swap would enable both DAOs to continually interact, engage, and align incentives with one another in both an immediate time horizon and beyond.
Motivation: SuperRare and Botto are both pursuing missions of progressive decentralization, collective creation, and distributed ownership. Both SR and Botto are motivated to further cultivate decentralized approaches to art.
Community is central to this - with both DAOs carrying conviction that artists, collectors, curators and participants are central to our paths forward. A token exchange facilitates this conviction, allowing progressive interplay between both DAOs to pursue their aligned missions through mutual governance rights.
For $RARE holders, this also means directly contributing to, and being rewarded by, training Botto’s development as an artist.
Technical specifications include facilitating a one-time transaction on each side of the respective DAO multisigs, where:
- 1,000,000 $BOTTO are sent to the SuperRareDAO Treasury Wallet
- The 30-day volume weighted average price is used to determine the equivalent amount of $RARE to be sent to BottoDAO’s Treasury wallet
- This 30-day volume weighted average price is calculated at midnight Eastern Time after the end of each DAO’s respective snapshots
- USD notional value is not considered
- Both DAOs hold the the tokens for a minimum of two (2) years after the swap
- No sale of tokens are permitted until after the two (2) years lockup period
- The two (2) year lockup period begins should both snapshots pass
- Each DAO has the right to acquire the tokens back at the prevailing market price if the other DAO decides to sell after this period, with market price taken at the time of declaring intent from either party.
The wallets to be used for the swap are each DAO’s multisig:
- BottoDAO Treasury Wallet - Botto: Treasury | Address 0x35bb964878d7b6ddfa69cf0b97ee63fa3c9d9b49 | Etherscan
- SuperRareDAO Treasury Wallet - SuperRare: Treasury | Address 0x860a80d33e85e97888f1f0c75c6e5bbd60b48da9 | Etherscan
Should both SuperRareDAO and BottoDAO’s proposals pass, a joint press release will be announced at the conclusion of the vote.
A small quantity of ETH is required to facilitate the token swap transaction for both parties.
- SuperRareDAO helps ensure the Decentralized Autonomous Artist can further cultivate its home on SuperRare, while further exposing itself to Botto’s upside
- Enables SuperRareDAO to participate in Botto’s voting ecosystem
- SuperRareDAO gains exposure and goodwill of the Botto community of artists, collectors, and enthusiasts
- BottoDAO may utilize acquired $RARE tokens to apply and vote on the next Space Race to build out curation of related AI art projects
- Both parties diversify their treasury and bank on the success of their respective DAOs
- Both parties mutually strengthen existing ties with one another, compounding each others’ media exposure and networks
- Both parties are able to contribute to the governance of one another
- A 2 year token lockup for both parties; illiquid treasury funds
- Potential investment risk where $BOTTO may become valueless should Botto fail to maintain and/or innovate its operations.
- Straightforward treasury diversification in the form of 1,000,000 $BOTTO
- A new Space Race participant in the form of Botto
- Participation in and governance of Botto’s artistic journey as a decentralized autonomous artist
Edit: Updated lock up period to two years to better reflect LT commitment as per BEN’s recommendation.