Profit Sharing for MetFi NFT Owners
MetFi DAOs treasury is proportionally owned and governed by all MetFi NFT holders — the more MFI tokens that you have staked to your NFT the greater your share of the assets in the treasury.
The treasury has multiple revenue streams and investing in early-stage Metaverse and Web3 projects is an important one of them.
The treasury will accumulate tokens/assets from the projects that MetFi DAO invests in and these assets will have an unrealized value. Successful investments increase the value of the treasury but those gains are not realized until MetFi sells or disposes of the project assets.
With this in mind, we wish to inform you that MetFi DAO is considering the implementation of an innovative, never-before-seen, value unlocking mechanism that would allow MetFi NFT owners aka MetFiers to exchange staked MFI for assets held by the treasury.
This would enable MetFiers to retain their NFT and all of the associated benefits that this brings whilst realizing profits for themselves along the way. MetFiers could then sell these newly acquired assets on the open market or retain them in their wallets and diversify their portfolio.
When MetFiers exchange their staked MFI for treasury assets all of the staked MFI will be automatically sent to a burn address as proof of the exchange transaction and the burning of the MFI.
The exchange event would reduce the total supply of MFI tokens and allow MetFiers to realize gains from the Web3 projects that MetFi invests in and it would also support the MFI token price via burning MFI, creating a more robust and flexible ecosystem where everybody wins.
We believe this solution benefits the community, the project, and the investor.
Claiming — Fungible Tokens
Claiming should be as easy as clicking a button on a marketplace and buying the project token with a wallet. Similar to how you buy and stake MFI today.
Fungible tokens that have been vested after reaching a level of maturity will gradually be released by the treasury at regular intervals in yet-to-be-determined amounts. Releasing project tokens incrementally minimizes the likelihood of a dramatic price drop of the project token which would not be in any of the party’s best interests.
To ensure fairness, a hard cap per wallet will be set to ensure that one wallet cannot buy all of the claimable tokens, or a disproportionate share of the claimable tokens so as to give all NFT owners an opportunity to claim the token — no matter how much staked MFI they have.
However, claiming will be on a first come first served basis as only a limited supply of each token would be claimable with each release.
Only staked MFI can be exchanged for the project token utilizing a proprietary formula to determine the exchange rate between the staked MFI token and the project token — this could be determined by a number of parameters including the total value of treasury assets, the total number of staked MFI tokens, and the price of both tokens.
Bidding — Non-Fungible Tokens
Bidding on a token should be as easy as participating in an online auction.
NFTs are not divisible as you can’t buy 25% of an NFT so claiming NFTs with one click wouldn’t be fair as the first wallet would always buy the NFT and everyone else would miss out. Online bidding would give all MetFiers the opportunity to place bids and buy an NFT at a price they are comfortable with.
NFTs will be released from the treasury in the same manner as fungible tokens (after maturing and vesting, at regular intervals, and in yet-to-be-determined incremental amounts) — however, there will not be a hard cap per wallet (you can bid on and buy as many NFTs as you want) as the auction process ensures fairness so rather than claiming NFTs MetFiers will bid on them within the MetFi app.
Innovating & Adding Utility
The feature upgrade that is being proposed here is unprecedented — it would give all MetFi NFT owners the opportunity to realize regular profits from the projects that the DAO invests in whilst continuing to enjoy all of the associated benefits that come with owning a MetFi NFT i.e. adding more utility to MetFi NFTs.
Alternatively, allow your staked MFI to keep accumulating via APY as the token exchange value will always be represented in the MFI token price because exchanged MFI will be burned, reducing MFI supply in the process.
What’s the Difference Between Fungible Tokens and Non-Fungible Tokens (NFTs)?
Fungible tokens are the same as every other token of the same kind.
For example, each BUSD is the same as every other BUSD and it is divisible — you can buy 1,000 BUSD or a portion of a BUSD such as 0.000001 BUSD.
MFI, BTC, and ETH are fungible tokens.
Non-fungible tokens (NFTs) on the other hand are not divisible as you can’t buy 25% of an NFT.
Furthermore, not every NFT from the same project is necessarily the same as every other NFT due to factors such as rarity and utility.
MetFi treasury assets can be fungible (claim) or non-fungible (bid).
We’d really love your thoughts on these ideas and welcome any suggestions that you may have in our Discord server or below in the comments.
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