Today we’re presenting the FloorDAO community and wider NFT-Fi space a quick breakdown of the current iteration of Floor V2, where we transition from a DAO centered around deploying liquidity to nascent NFT-Fi protocols to a blossoming “Floor Protocol” at the ever-expanding frontier of NFT-Fi. We’ll explore our new “Floor Wars”, Floor vote markets, vote-locked FLOOR, “NFT Champions” and “Mercenaries”, and even take a look at the potential of a Floor NFT.
Floor Wars
“Floor Wars” have been a traditional allure of FloorDAO, but the term has just been a nickname for when gFLOOR voters utilize Snapshot to add collections to the treasury through “Collection Additions”, with further liquidity being supplied at the direction of “Gauge Vote” events held every two weeks.
Floor V2 (now called “Floor Protocol”, Floor for short) aims to productize and set the foundations for scaling the Floor Wars — a voting mechanism that will sweep NFT collections and direct liquidity. Our treasury and the new Floor Wars are powered by ETH yield, with the ETH generated from our assets are funneled back to these weekly Floor Wars.
In the future, ETH yield flowing back to the Wars will be increased not just through optimizing and deploying new strategies, but by launching new NFT-Fi products under the Floor umbrella and engaging new collections with our unique set of products and services. V2 will help position Floor to power the NFT-Fi renaissance.
The core team proposes that we set a minimum of 10 ETH to be sent to the Floor Wars each week with a goal to make this level of yield sustainable as quickly as possible, all while proving the model to be efficient.
We want Floor governance to be one of the most important and most engaging in the industry, and a successful demonstration of how coordination games can create desirable outcomes for all holders.
Sweep Wars & New Collection Wars
Each week a new Floor War will begin, one of two types:
- Sweep Wars
- New Collection Wars
By default, the War will be a Sweep War. While this is similar to the current off-chain Snapshot Gauge Votes, Sweep Wars will be on-chain and a transaction will be built and stored on-chain for the DAO to execute at any time once the War has concluded.
The DAO can choose to instigate a New Collection War at any time, also on-chain and overriding the Sweep War for that week. In New Collection Wars, all ETH yield made during that select week will go towards sweeping the winning collection, helping to make the sweep transparent.
Floor V2 Features
Vote Locking FLOOR
Users will be able to lock FLOOR for up to 2 years to gain “Sweep Power”. The longer the lock, the more Sweep Power awarded. The amount and time locked can only be increased and exiting a lock before the lock ends is possible but will incur an early exit fee. This mechanism might be familiar to some as it is taken from 1inch’s V2 governance.
Floor Protocol Vote Market
We want to enable an active and lucrative vote market where creators and collectors can help direct liquidity and sweeps by purchasing votes from FLOOR holders. This upcoming version of Floor will also include an on-chain vote market similar to StakeDAO.
NFT Champions
To allow greater participation in the Sweep Wars, users will also be able to lock NFTs against their respective vault for up to 2 years. These locked NFTs are referred to as “Champions” and will have a multiplier effect for any existing FLOOR votes for that gauge. In return, the DAO will earn single sided yield on the staked NFTs.
One of the major goals of Floor Wars is to engage communities, and an issue that we’ve run into in past “Collections Addition” votes has been community members of specific NFT collections only finding out about the vote after the Snapshot has been taken. We want to solve this: individuals who may not hold FLOOR can still signal their support and in return the DAO will earn some yield. But let’s be clear — the Floor War voting mechanism still heavily favors FLOOR.
NFT Mercenaries
When it comes to the New Collection War, the DAO is at risk of being front run on its initial sweep. For New Collection Votes, users can stake NFTs against their respective collection with a strike price between 0 and 100% of the current floor price of the collection, generating voting power for the collection in return. At the end of the vote the DAO has the right (but not the obligation) to buy these staked NFTs (“Mercenaries”) at the strike price listed. The further beneath the floor price an NFT is offered, the more voting power it carries. If the DAO opts not to exercise all of the staked NFTs, they are then offered to Floor NFT holders before being unlocked for withdrawal from the original staker. With voting being on-chain, the deployment of Champions and Mercenaries could lead to new and interesting ways for creators/communities to programmatically reward those who support their collection in this way. We’ll have more information on this in future updates.
POAPs
Each war will have a POAP, or POAP style NFT that users can claim, giving users a way to celebrate participation, especially in some of the more historic wars that take place (Ahem, Miladys v.s. Tubby Cats & Redacted Remilio Babies v.s. Lil Pudgys)
Floor NFT…
Each gauge in the Sweep War will have a corresponding NFT except for those voting on the FLOOR gauge. This puts the FLOOR gauge at a disadvantage. We believe that this creates a great opportunity for Floor Protocol to release its own NFT collection, and we’ll have more information on this in future updates.
Conclusion
Creators and collectors should see Floor as an essential partner that elevates the value of their collection in a way that no other product can. We’re well positioned to reap the benefits of the blossoming NFT-Fi space thanks to our curation, coordination and capital. We are at the earliest stages of NFT-Fi and see a market coming that may be worth trillions of dollars one day. Yes, trillions with a “t”. By establishing our products today, alongside ownership of the underlying assets, we can execute on an opportunity that will be very difficult for later entrants to compete with.
Keep in mind that while we’re presenting this information as an update, there is still room for change and evolution of ideas. Our goal is to position Floor in the best way possible for whichever way NFTs go in the future.
Want more info, have any questions, or want to make comments on the above proposed V2 mech? Join the FloorDAO Discord and chat away!
