veZOO: The path to greatness
We’re excited to announce the latest in a string of exciting new developments planned for deployment in ZooDAO’s NFT Battles: veZOO!
The veToken model, or vote-escrow model pioneered by Curve brings $ZOO into focus for NFT Projects integrated in NFT Battles, providing an opportunity for active participation of projects and broader project communities in NFT Battle dynamics.
The why behind veZOO
There are currently 45 projects integrated in ZooDAO’s NFT Battles; these projects range from what we could describe as boutique projects — with fewer than 2000 NFTs in the collection, but supported by mighty — almost evangelical communities. By contrast, the largest projects enrolled in Battles boast over 20,000 NFTs, with continuously growing support. From a pure numbers perspective, it’s a daunting comparison. This contrast will become all the more visible once two NFTs go face-to-face in the Battle Arena, as communities rally behind their preferred NFTs to increase their chances of victory.
One factor which was previously left unaddressed in NFT Battles is the face value of an NFT. While Battles are a great equalizer (in that an NFT worth 0.03ETH could defeat an NFT worth 12ETH), the dynamics of NFT Battles didn’t account for the comparative value of each NFT Collection enrolled. Collections are fundamentally operating on the same playing field in NFT Battles, with no distinct advantage awarded to any specific NFT. While this dynamic works fairly and equitably, we’re missing the opportunity to enable smaller, agile NFT Communities to rise above their larger community counterparts to prove that size doesn’t matter. The face value of an NFT shouldn’t be determined only by how much it cost to purchase, but also what share of rewards it’s able to secure.
NFT Communities are perfectly positioned to take up the competition to determine the value of their NFTs. However, driving engagement of NFT Communities is not a simple task; it requires continued coordination, engagement of the project team, champions within the user base and a desire to dominate in the Battle Arena. This is where veZOO comes in.
How veZOO works
ZooDAO’s Battle mechanics incentivize NFT Stakers and Voters through $ZOO token rewards, which are claimable after each Battle season. The veZOO model enables us to determine an equitable distribution of $ZOO to Stakers and Voters.
The veZOO model encourages communities to compete to secure the proportion of available $ZOO rewards distributed during NFT Battles. To do so, community members affiliated to a project stake their $ZOO tokens for a chosen period of time, to receive veZOO in return. This veZOO is staked to a project-specific pool, the balance of which determines the proportion of rewards assigned per community.
Simply put, by adopting the veZOO model, certain collections will become more profitable to vote on and stake.
External communities from DeFi, crypto, and NFTs may indeed choose to vote on an NFT from your collection if you have a high veZOO percentage.
This model not only represents an opportunity for early adopters of $ZOO to take a commanding seat at the table for their eligible projects, but it also creates continuous and consistent competition for $ZOO’s voting power, which in turn will benefit holders too.
A few important things to note
· veZOO cannot be transferred. The only way to secure veZOO is by locking ZOO for various periods, the lock times will be determined at a later date.
· Users’ veZOO balance decays linearly over time, along with the voting power associated with it. This linear decline prevents manipulation by whales who may lock high numbers of $ZOO in an effort to farm rewards
· veZOO is not issued directly to the user as an ERC-20 token. A users veZOO position is visible from the dApp and tied to the wallet with which they staked, however no token will appear as a placeholder in the user’s wallet.
Expected outcomes of the launch of veZOO
Adoption of veZOO provides a number of distinct, tangible benefits to users. First, the model promotes healthy competition between communities to secure additional rewards. Communities which coordinate effectively and take an active role in the success of ZooDAO are in turn rewarded with a higher share of $ZOO tokens. Some communities may choose to invest in $ZOO tokens on behalf of their users, or provide additional incentives for locking $ZOO. This level of coordination is expected to enhance the allocated rewards for smaller, more tight-knit communities.
Second, locking $ZOO tokens at a large scale reduces the number of tokens in circulation, driving the cost of the token on the market. This is a direct benefit to users, as those who invested in tokens at early stages of development are likely to see a continued increase in value.
Adoption of veZOO provides a number of distinct, tangible benefits to users. First, the model promotes healthy competition between communities to secure additional rewards. Communities which coordinate effectively and take an active role in the success of ZooDAO are in turn rewarded with a higher share of $ZOO tokens. Some communities may choose to invest in $ZOO tokens on behalf of their users, or provide additional incentives for locking $ZOO in support of their project. This level of coordination is expected to enhance the allocated rewards for smaller, more tight-knit communities.
With the introduction of veZOO, a crucial part of ZooDAO’s “Exodia” will be complete. An opportunity lies in veZOO for savvy, under-recognised projects to dominate the rankings and become the most profitable NFTs on ZooDAO. Could you be holding the next veBluechip, anon?