Incubation of new DAOs is one of the ways Fingerprints can scale beyond the current collection, giving some flexibility to its members to experiment and potentially capturing the upside if the experiments are successful.
We have a precedent with this with Emergence DAO, a DAO created around the Emergence project by initiative of a few Fingerprints members. This DAO started with Fingerprints, received some capital to purchase artwork, and eventually two other DAOs joined it — Flamingo DAO and Squiggle DAO.
The way I personally see this: incubated DAOs are a great way for us to have exposure in different thesis across the space, without:
fully building the organization within the current Fingerprints ownership, which is already a no go for many DAOs, given the high cost of admission
losing focus on our main collection
The basic idea for RAW DAO comes from two observations:
- photography has value as an art form and NFTs can be a major improvement on the way the market has been operating since the beginning, with artificial physical scarcity (prints) being substituted by actually verifiable scarcity (NFTs)
- At the current state, the market is very disorganized and relatively small. My estimate is that the whole photography market is smaller than a single Art Blocks collection (Fidenza)
As I laid out in this blog post, the NFT photography market lacks structure. There are 3 basic issues:
Onboarding is tough and there’s a risk of minting and not selling (failing)
The need to form a community is very costly to an artist entering the space
Collectors have to filter through the noise to find quality work
RAW aims to tackle the 3 problems.
The basic idea for RAW then is to de-risk the onboarding process for the photographers, providing a strong quality signal to the collectors and forming an early community for the artist. In the meantime, forming one of the greatest collections in the space, collectively owned by the RAW DAO members.
The DAO aims to have as members great artists, curators, collectors and DAO builders who:
find fantastic photographers and helps onboarding them (advice on where to mint, how to price, how to market etc)
purchases a significant portion of their initial drop
Help bootstrap the early community
Apart from de-risking the onboarding process for the photographers, it also has the side effect of providing the market with a strong signal: people with great taste and skin in the game vouch for this particular artist.
The proposal is for Fingerprints to incubate RAW DAO. That means giving early community support to the project, helping it with organization and basically kickstarting the early community: active involvement of members, coordination of the multiple stakeholders, help with the initial raise. All of this until RAW can become its own thing.
The founding piece for RAW DAO is Twin Flames #49, the top piece of the (currently) most valuable photography NFT collection. The cost of the acquisition was 506 ETH. This piece will be donated by me and @flo.eth to the DAO’s treasury,
There will be 10M RAW tokens. To signal the commitment to the long term, I suggest 7.5M of the tokens goes into the RAW treasury
My proposal to Fingerprints is for it to buy at cost up to 750k tokens (30% of the outstanding supply)
Fingerprints members will have the option to buy 250k tokens (10% or the outstanding supply).
The rest of the initial outstanding supply will be left to photographers (small airdrop + ability to purchase more at cost), collectors, to myself and to @flo.eth a member who believed very early on the thesis and funded me on the purchase of the piece (500+ ETH), also helping brainstorm throughout this whole process around building this new DAO.
The ideia after the formation period is to actually raise money for the DAO itself to start operations, selling tokens from its treasury. Fingerprints can choose to participate in this raise or not.
The outstanding supply (2.5M tokens) should be priced at the cost of acquisition of the piece, 506 ETH. Cost per token then is 0.0002024 ETH
The proposal I planned to put on Snapshot isto have the following options for Fingerprints’ purchase. Any share of the 750k tokens not purchased by Fingerprints can be allocated to members. If members don’t want to, I can either find external collectors or keep the share.
- zero tokens
- 125k tokens (5% of outstanding supply, 1.25% fully diluted) at 25.3 ETH
- 250k tokens (10% of outstanding supply, 2.5% fully diluted) at 50.6 ETH
- 375k tokens (15% of outstanding supply, 3.75% fully diluted) at 75.9 ETH
- 500k tokens (20% of outstanding supply, 5.0% fully diluted) at 101.2 ETH
- 625k tokens (25% of outstanding supply, 6.25% fully diluted) at 126.5 ETH
- 750k tokens (30% of outstanding supply, 7.5% fully diluted) at 151.8 ETH
- No. Zero tokens
- Yes. 125k tokens
- Yes. 250k tokens
- Yes. 375k tokens
- Yes. 500k tokens
- Yes. 625k tokens
- Yes. 750k tokens