Considerations for the Open Membership Intakes
UPDATE 27 May 2021: The dates mentioned in this article have been amended. Please refer to Official Notice 01 here for the updated dates.
I am preempting some questions regarding our membership intake mechanics. While there is nothing usual about how we are launching the Arena, it is not a complex topic.
A few foundational matters (as of the date of this article):
(a) The Arena is an invite-only membership platform. At launch, we have an open e-mail whitelisting period (meaning anyone can whitelist their email addresses to sign up in the future).
(b) The open whitelisting period ends on June 30, 2021, 23:59 UTC, and depending on when someone whitelists their email address, they will have access to different benefits. The early birds get better benefits.
© There are three sign-up stages as follows. People that whitelist their email addresses before:
(i) 30 May 2021 23:59 UTC can sign up between 1–7 June 2021;
(ii) 6 June 2021 23:59 UTC can sign up between 7–30 June 2021; and
(iii) 30 June 2021 23:59 UTC can sign up anytime but get additional benefits if they sign up between 1–10 July 2021.
(d) A required step of signing up is for members to have BUNs in their accounts. This means that only one can log in after first buying BUNs.
(e) After 1 July 2021, membership will be by invitation only. To invite someone to join, members must spend 1 BUN (currently) to whitelist their invitees’ e-mail addresses. At the time of signing up, our system will check whether
(i) the invitee’s e-mail address is whitelisted,
(ii) the referrer (the person that whitelisted the e-mail address) has at least 1 BUN in their account, and
(iii) that there are BUNs available to sell to the invitee. All three checks must be valid for the invitee to join.
(f) Members can invite others starting 10 July 2021 (00:00 UTC). The KYC, public address whitelisting, and contract signing will also be enabled after that time.
(g) BUNs are limited to 500,000,000 BUNs available in packs of 25 (for 5 USDC). There are no allocations of BUNs for any of the sign-up stages, which makes it possible that members wanting to sign up can’t do so because we don’t have BUNs to sell then.
(h) Members can have up to 50,000 BUNs in their account (subject to revisions in the future).
Based on member participation in the Arena (i.e., bidding at auctions, etc.), BUNs are sent to the Oven, and 80% recirculate back to NeoWorlder every Sunday at 00:00 UTC when the Oven redistributes BUNs to the ecosystem. This provides BUNs to sell to members at that time. This also automatically regulates membership intakes over time. Let us look at some possible scenarios of this design.
“Max” Scenario
All BUNs are sold between 1–7 June 2021. Unless an auction concludes and the Oven redistributes a significant amount of BUNs, very few new members can sign up. Note: We may introduce a cap on BUN purchasing per member for the stage 1 intake period where this is deemed appropriate. Whitelisted persons will be advised of this on 30 May 2021. Sign-ups in stages 2 and 3 entirely depend on the number of BUNs the Oven distributes during that time. Hence, sign-ups may be extremely limited in a “max” scenario or impossible. However, those that have whitelisted their e-mail address before 30 June can sign up at any time after the Oven empties (i.e., when NeoWorlder has BUNs to sell).
The graph shows a slight drop in the circulating supply to account for Oven distributions from some non-bidding member activities on the platform. At some point, an auction is expected to conclude and fill up the Oven, which then distributes on Sunday at 00:00 UTC. New people can then buy BUNs to sign up. While people sign up after 7 June, members can also purchase BUNs if their accounts do not reach the maximum limit of 50,000 BUNs. This limit is in place to prevent hyper-concentration of BUNs in the hands of a few, which would affect engagement around NFTs on auction.
“Variant” Scenario
Only a portion of BUNs are sold between 1–7 June 2021. In that case, any whitelisted e-mail address can be used to sign up.
“D-Day” Scenario
Below we look at the effect of D-Day (a theoretical event where all BUNs are locked in the Oven, and all members wait for it to redistribute BUNs back into the ecosystem to log in and participate again).
How likely is a D-day event?
For example, there are 20,000 members and 20 NFTs on auction. In that case, an average receipt per NFT is 25,000,000 BUNs (of course, this is a back-of-the-envelope calculation and does not consider members that “hodl” BUNs and the fact that NFTs will fetch different amounts based on their desirability, etc.). This means an average bid per auction of 1,250 BUNs per member (approximately 250 USDC per auction). However, the auction timer may extend the auction duration (for example, each 15-second period could have simultaneous bids or one bid at a time while a member waits for the timer to reset before bidding again).
What’s to stop members from joining with a number of email addresses?
Nothing although it is against our rules and members that engage in account farming risk suspension or termination. Further, members should know that we require they go through our KYC (Know-Your-Customer) process prior to getting transfers of USDC (for example, as proceeds for an NFT-resale and sales commission for holders of the pioneer badge), sending BUNs into their custody, or transfers of NFTs out of our custody.
Concluding Remarks
NeoWorlder is designed as an invite-only, exclusive member platform.
As such, the above rules are implemented to self-regulate to achieve this specific feature. We are prepared for situations in which all BUNs are sold out in stage 1, the D-day events, or if BUNs take a much extended period to be sold from our initial minting. Our primary focus is to provide our members with value and great engagement.
❤️ Loot NFT.
