ZooDAO: Introducing xZOO and Jackpots

DAO Proposals 003 & 004

5 min readAug 14, 2022



Active participation of the community in deciding on our future strategy is central to ZooDAO’s structure and a core tenet of the DAO. Community involvement has accelerated uptake of innovative strategies, and adoption of best practices in the design of ZooDAO Battle Mechanics. In our last proposal, 100% of votes approved adoption of a multi-chain strategy, and 99.62% of votes approved adoption of a multi-vault strategy.

Community members are requested to critically evaluate the proposals below, and participate in a Snapshot vote to approve or reject each proposal individually.

Proposal 003: Distribution of ZOO tokens: xZOO

The mechanics of ZooDAO’s NFT Battles currently include multiple opportunities for NFT Holders and NFT Voters to be rewarded for their participation. In line with our commitment to create the opportunity to earn from your NFTs in a no-loss, gamified environment, Battles act as a mechanism to provide all users clear incentives to participate, and equitable opportunities to win.

In examining the dynamics of NFT Battles, the team identified an opportunity to create an additional incentive for NFT Holders and NFT Voters to continue participating in Battle Seasons: xZOO.

Introducing xZOO would enable users staking $ZOO in the dApp to receive a dividend — a distribution of profits generated in NFT battles — directly to participating users staking $ZOO. Users would not need to participate in the battle season to benefit from this dividend; having staked $ZOO in the xZOO Module in the dApp would enable eligibility. Rewards available would represent 0.5% of all USD Stablecoin yields generated during the battle season, distributed per Season. Rewards would be claimable at any point following the Battle Season, enabling users to leave $ZOO staked in the xZOO Module of the dApp and claim their Stablecoin rewards at any time.

Why we’re confident in this solution

The addition of xZOO does not significantly dilute the rewards made available to Battle winners or voters. By distributing consistent rewards to users despite having won or lost the NFT Battle, we ensure equitable distribution of tokens, and encourage continuous participation in NFT Battles. Considering the available mechanisms for token distribution, the xZOO model works to ensure fairness and broadens the relevance of ZOO tokens.

The ZooDAO Project team unanimously supports this proposal.

Proposal 004: Introducing Jackpots

The adoption of a multi-vault strategy has created the possibility to further iterate how Battle rewards are distributed. Higher yields enables the addition of an exciting mechanism to promote continued participation in battles: Jackpots!

During each Battle Season, 2% of yield generated would be diverted to two Jackpot pools — one for NFT Holders, the second for NFT Voters. Each season, all users participating in the season would be eligible to win the Jackpot based on their participation in the Battle. Jackpot winners would be identified through deploying Chainlink’s Verifiable Random Function (VRF), a cryptographically secure method of guaranteeing fairness. Jackpot rewards would be paid out from each pool on the last day of Battle.

To ensure fairness, Jackpots are proposed to be 100% equal, not equitable. In practice, this means that every user has the same chance of winning — no matter how many NFTs they hold and stake, or the number of ZOO tokens they hold in their wallet. While other rewards mechanisms in ZooDAO’s NFT Battles are driven by proportion of tokens held, the Jackpot method is most fair when all users have the same opportunity to win.

Important to note:

  • An NFT Holder staking more than 1 NFT in the dApp for Battles would only have a single chance of winning the NFT Holder Jackpot per Season. Staking multiple NFTs does not increase chances.
  • NFT Voters who staking a single USD Stablecoin or ZOO token in Battle have the same chance of winning the Voter Jackpot as users who stake thousands
  • Jackpots are distributed every Battle Season; total amounts are consistently 1% of total yield per Jackpot
  • There is no limitation of the number of times a user may win the Jackpot

Why we’re confident in this solution

Is this solution absolutely necessary to ensure NFT Battles are fair? No. Is it super exciting and does it create an amazing opportunity to win during every Battle? Absolutely. We want to give all users every possible opportunity to win, even if they were not victorious in the battle season. We’re confident that Jackpots are an incredible way to ensure everyone has multiple fair chances of winning.

The ZooDAO Project team unanimously supports this proposal.

How to participate in the vote

This vote is hosted on Snapshot. To submit a vote, connect the wallet in which you hold $ZOO tokens to the dApp and select Approve / Reject proposal. No gas fees apply.

Proposal 003: xZOO
Proposal 004: Jackpots

Join the conversation

Have you got feedback on the proposals detailed above? Head over to Discord and join the conversation.

With thanks from the team


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ZooDAO is the first community-governed platform enabling users to generate yield from their NFTs.