General AMA & DAO Vote #3 — Setting Protocol Fee

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BosonProtocol

8 min readAug 22, 2022

Thank you for joining our General AMA with Justin Banon Co-Founder of Boson Protocol & Jonas Seiferth our Web3 Director.

See the summary below of the AMA that took place Friday 19th August in our Discord channel. Justin & Jonas discussed setting the Protocol fee and how you the $Boson holder can take part in deciding the final fee via the Snapshot vote which is live now running from midnight August 22 and closes midnight August 26 (UK time) CLICK HERE TO VOTE NOW make your voice heard.

Please see below the transcript from our AMA in Discord to help inform you in making your decision.

___________________________________________________________________ Proposal Details: Protocol Fee Parameter setting
This vote will be a single-choice vote. The three options to vote on are:

Option A — 0.5% Protocol fee
Option B — 0.6% Protocol fee
Option C — 0.7% Protocol fee ________________________________________________________________

Justin - Hi @everyone 👋

Jonas - We’re here to discuss the governance proposal about setting the Protocol fee (read more here https://medium.com/@bosonprotocol/c65d1deb5e54). The upcoming DAO vote on the Protocol fee will be the most significant one in Boson’s governance history and we’re here to answer any questions that the community has. We’re also happy to answer any questions around the recent v2 whitepaper release and the subsequent blogs that we published on the v2 design

Justin - First let’s focus on the DAO vote on the Protocol fee.

Discord user (D) Satotzshi#2112 - Hi could you give us some examples of what the fees collected would be used for?

Jonas - The Protocol fee will be collected by the DAO treasury. $BOSON token holders govern the treasury and decide on how the revenue generated by the Protocol fee is allocated. We expect token holders to reinvest a large part of the treasury into Protocol, application and ecosystem development and public goods of the Boson ecosystem — this could establish a flywheel in which reinvesting the Protocol fee revenue into Boson public goods leads to more Protocol usage, further driving the flywheel.

Telegram Question (TG) from Joseph Joestar - V1 didn’t have a Protocol fee, how come will V2?

Justin - We are following the principles of ‘progressive decentralization’ (which you can read more about here: https://a16z.com/2020/01/09/progressive-decentralization-crypto-product-management/

Basically, at the early stage we were just searching for product market fit. We achieved this with a lot of traction for Metaverse Fashion Week in DCL, and we now have a ton of partnerships lined-up for v2 launch. So we now have the network effects in place to enable us to charge a ‘minimally extractive fee’ (https://www.placeholder.vc/blog/2019/10/6/protocols-as-minimally-extractive-coordinators)

The options we are proposing are.

Jonas -
Option A 0.5% Protocol fee
Option B 0.6% Protocol fee
Option C 0.7% Protocol fee

You can read more about it in the governance proposal
https://medium.com/bosonprotocol/boson-protocol-dao-vote-3-setting-protocol-fee-c65d1deb5e54

Justin - So basically, the options are: — 0.5% this will stimulate more network growth, but less fees to fuel the ecosystem — 0.6% is a mid-point, a balance between growth and fee capture — 0.7% this will capture plenty of value to fuel the network, but may reduce growth slightly

NB — we have lots of partners wanting to launch and a very unique and differentiated technology. What does the community think? Let’s open for questions on this specific topic…

(D) Nicky Taylor - I can see from Justin Banon tweets you guys having a high demands about partnerships and major players. What kind of partnerships are you guys talking with and which players?

Justin - I will take this one. We have partnerships lined-up with a large number of projects across a wide variety of areas: — Web2 brands and platforms wanting to sell physical items as redeemable, tradeable NFTs; both on the web and in the metaverse — global advertising agencies, with lists of clients wanting to do the above — phygital marketplaces wanting to use Boson infra to power digital to physical redemption — NFT projects wnating to sell physicals in a decentralized way — luxiry watch, handbag and wines/spirits projects wanting to tokenize exclisive items — gaming projects wanting to sell physicals in-game

(D)Wassim LatinOs | Soland City#7353 - What is the most ambitious goal of your project? What is the ultimate vision that Your project is trying to achieve within the cryptocurrencies market? I would appreciate it if you could share with us any Upcoming Updates?

Justin - The aim of Boson is to be the de facto commerce layer for the economy. Imagine if all the world’s physical assets were tokenized as Boson redeemable NFTs, and could be searched and exchanged with minimum effort and cost. This would result in an entirely different economic model. IT would do to commerce what the current internet has done for data. see this World Economic Forum article. We have been made a World Economic Forum Technology Pioneer due to our potential to transform commerce globally… https://www.weforum.org/agenda/2022/05/17-ways-technology-could-change-the-world-by-2027/

(TG) Maya San - I’ve been seeing the Boson protocol in decentraland for a while now. I have high hopes for the protocol. Even though I believe metaverse has a bright future, I’d like to see Boson work on other platforms today. Will I be able to see it after the V2 Deployment? I talk about NFT marketplaces or even normal ecommerce.

Justin - We held back from integrating with more metaverses on v1 cos we are moving to v2. Once v2 is launched we will be launching stores and vending machines which will have Boson commerce infra plugged in and render in DCL, Sandbox, Cryptovoxels, Spatial etc We also are launching dApp storefronts and plugins for legacy web2 e-commerce websites and systems. BOSON PLUGGED-IN EVERYWHERE!!

(TG)- I’m really excited about the v2 launch. How will normies be able to access and use Boson?

Jonas - The v2 smart contracts themselves will be deployed to Polygon, to allow for low transaction fees and good UX. We’re also releasing a suite of SDKs and Widgets for good developer experience. Finally, for “normies” we’re going to release a flagship application that will allow users to tokenize, transfer and trade any physical item as a redeemable NFT and access full protocol functionality. Here’s a sneak peak: We have some exciting announcements coming up about Boson’s v2 dApp in the coming week.

(TG) Maya San - Hi guys, happy Friday. I have a question regarding Ethereum V2. Do we expect any influence on Boson token after the shift? I see that it’s coming in the middle of September.

Jonas - I’m personally super excited about the Ethereum merge. The merge won’t impact the $BOSON token or Boson Protocol v1. I think we got great timing with the launch of Boson v2 being so close to the Ethereum merge

(D) FIRE#8760 - What’s the application of BOSON for small scale businesses? How will they be educated with this ‘future’ commerce?

Justin - For Web3 small businesses- they can simply pick-up the Boson dapp and create a storefromt to sell physcial things as redeemable NFTs For more traditional web2 businesses, we have tech partners building a range of plugins and widgets to enable them to sell direct from e-commerce systems.

(T) Frederico De Coco - What kind of industries and products are expected or planned to be launched with the V2?

Jonas - We’ve seen a load of interest in the categories of fashion and Jewelry. Redeemable NFTs with their forward contract like properties, enable for the efficient trade of the right to receive a physical product within a pre-defined time period. This is especially relevant for one of a kind products that are looking for price discovery and to enable a secondary market. Imagine you could hold your favourite pair of rare sneakers as an NFT and trade them on Opensea! We’re onboarding these creators with the v2 dApp, which makes it easy to sell on Boson.

(D) Tcash#2523 - Are you anticipating that the current giant of E-commerce (Amazon etc..) will not replicate your model ?and with their scale are you not worried ? Are you specifically focusing on USA retailers ? What about Europe and asia ?

Justin - The challenge that public/private corporations have is that the have an imperative to ‘maximise shareholder value’. That means the MUST extract maximum value from users/buyers/sellers and send it to shareholders. As a decentralized protocol, we have the opposite imperative. We are run by and for our community and everyone gets to share in the value they create.

(d)Denise_Defiants#2163 - Will there be a list of brands that have partnered with Boson for V2 launch?

Justin - We will be announcing partners one by one over the coming weeks and months. You can expect a constant drumbeat …

Okay everyone. Thanks for all the questions. The key objective is to get the community’s decision on the fee levels for v2. Please consider carefully and vote as per below….

Jonas - Executive Summary V2 of Boson Protocol allows for the setting of a Protocol fee, see Page 33 in the v2 Whitepaper. The Protocol fee only applies if the Offer price is not priced in $BOSON. If the Offer is priced in $BOSON, no Protocol fee applies to the exchange. The Protocol fee is levied on the Offer price and is charged for successful exchanges only. If an exchange’s outcome is an undesirable endstate, such as the Cancellation by the Buyer, Revoking of the exchange by the Seller, or the resolution of a dispute, no protocol fee will be charged.

Proposal Details Protocol Fee Parameter setting

Three options for setting the Protocol fee are proposed below:

Option A 0.5% Protocol fee

Option B 0.6% Protocol fee

Option C 0.7% Protocol fee

How to participate Vote on Snapshot between August 22nd and August 26th. Following. Boson Protocol’s governance process, more than 0.5% of the total circulating token supply must vote for one of the variants for a vote to pass. Here’s the help guide to Snapshot voting. https://snapshot.org/#/bosondao.eth

Justin - Thanks everyone and bye for now. You can reach me on twitter at: @JBanon

Jonas - Thanks everyone, looking forward to the next one.

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About Boson Protocol
Boson Protocol enables you to build commerce applications that anyone can use and everyone can trust. Decentralized Comerce enables a new world of commerce that bridges the on-chain and off-chain world.
Easily add dCommerce capabilities to your dApp, build a web3 marketplace or even create your own loyalty program where your customers can redeem real-world rewards in a Web3-native way.
Want to Build on Boson?

Keen to learn more?

Download the Boson Protocol v2 whitepaper
Watch the Boson v2 whitepaper keynote at EthCC[5]

General AMA & DAO Vote #3 — Setting Protocol Fee

Written by Boson Protocol