Bonding Curve NFT PASS: A New Way Help Creators and DAOs Govern with Lowest Operation Burden
At present, the leading projects in the DAO track and the SocialFi track have suffered from subsequent weakness after the explosion. As we can see, some of the DAOs or creators are generally individuals or low-tech organizations. How to realize the active participation and common governance of the community and the operators can actually lighten the burden on the tech side? We want to introduce the Bonding Curve NFT PASS Offering for all.
Bonding Curve NFT PASS
Bonding Curve PASS (BC) is a type of NFT PASS that mixes speculation and DAO utility.
Generally speaking, the more the supply, the higher the price based on the formula will go. In other words, when people are buying in a creator’s NFT PASSes, the price of the NFT shall go up automatically at a certain rate.
There are two types of Bonding Curve PASSes targeting all users which are “Basic” and “Advanced”. Those two all comply to the same formula as following:
f(x)=PASS Price
v= Initial Price-m
m and n are variables
In the basic version, we have set m=0.00002, n=2 to cater to the demands of the majority without needing creators to understand the algorithm but only by inserting the initial price they wanna start the sale with.
However, for the Advanced version, we leave the variables “m”, “n” open to achieve more flexibility and customized design for professional users.
Below are the graphs of what the PASS price curve looks like with the accumulation of the supply in circulation. If you wanna check more data and have a clearer comprehension on this, feel free to check this sheet or learn more about bonding curves here.
The higher number of purchases of the NFT PASSe will mean that more funds will be “locked” on the bonding curve which provides the sufficient liquidity for the traders, lifting the pressure for creators or DAO operators ( with automated market-maker) .
Meanwhile, in order to maximize the benefits for all, The PASS will shift some of the funds to DeFi platforms like Compound, AAVE to achieve passive income for creators among multi-chain ecosystems. In this way, creators can both enjoy the revenue of the PASSes and the yields from the Bonding Curve Vault.
Bonding Curve NFT PASSes have the following advantages.
Proof of Passion
The NFT PASS of one DAO or community is the proof of passion. Every Web3.0 DAO or community shall release NFT PASSes in the future. That’s the FOOTPRINT or on-chain proof for all Web3.0 users.
Fundraising
As for Bonding Curve, creators can get a range of 0~20% percentage of the Initial Sell. For example, if the creator sets the fee as 20% and then if someone buys $100 of the PASS, the creator can get $20. In the meanwhile, the remaining 78% ( platform will take 2%) on the curve will be shifted to AAVE for profits and creators can claim that part of profits anytime.
NFT Govrnance
The PASS empowers creators by building DAO communities and DAO members can get a piece of ownership of the community, a skin in the game, a voting power in the governance with NFT PASSes. Those PASSes in the platform define ownership and showcase your personality.
Bonding Curve can solve the two problems when building and maintaining a community:
1. How to motivate new members to join and participate when the community is not yet popular?
If the community administrators can motivate community members to join and participate by minting tokens. For example, DAO can issue some PASSes to new members for a relatively low price , and then profit by contributing to the community to increase the value of PASS with Bonding Curve.
2. How to achieve DAO decision making without releasing the ERC20 tokens?
Launching tokens sounds to be the most easy and common thing in the industry while a lot of people neglect how heavy it can be including the listing, MM, liquidity etc.. In the early stage of building, our Bonding Curve NFT PASS can be an alternative way to replace that solution while achieving the similar effect. It can empower the supporters of the ability of earning for supporting, empower the creators with fundraising in the early stage with the lightest operation burden. In the meanwhile, those people can participate in voting and decision making through NFT PASSes.
Bonding Curve NFT PASS is a new way to maintain and motivate the DAO or community especially for small to medium organizations. It helps you gather the first supporters, fundraising for the team, manage through decentralized governance with the lightest operation burden at the same time.
