Finally, the wait is over! After months of hard work, we’re excited to announce the AllianceDAO NFT collection: a groundbreaking NFT project created on the Terra blockchain that rewards Game of Alliance players. For the first time, users will be able to harness the reward power of the Alliance module in NFT form. Anyone who participated in the Game of Alliance on Terra testnet will be eligible to claim an NFT from this collection and stake it to AllianceDAO on Enterprise DAO. Each NFT in the collection is more than just a work of art; it’s a living reservoir of rewards, storing an ever-increasing amount of LUNA rewards from Terra’s Alliance module until the user is ready to claim.
Before learning more about the NFT and the claim process, let’s briefly outline Alliance and the Game of Alliance (GoA).
What is Alliance?
Alliance is an open-source Cosmos SDK module that enables blockchains to form mutually beneficial relationships that strengthen their economy, similar to trade agreements between countries. Using Alliance, a chain can allow almost any token, including liquid staking tokens, stablecoins, liquidity provider tokens, and other Cosmos assets, to be staked on their chain to earn staking rewards. In turn, for providing a portion of the chain’s staking rewards to stakers of these tokens, the chain can redistribute a percentage of these staked Alliance assets to native token stakers, diversifying the chain’s staking rewards and making the token a more interesting asset to hold and stake.
For more information on Alliance and how it works, visit the Alliance website.
What was The Game of Alliance?
The Game of Alliance (GoA) was an incentivized testnet designed to battle-test Terra’s Alliance module before its mainnet launch, and it ran from February 9th to March 2nd, 2023. During the game, users could stake on different Alliance chains and move their tokens around to optimize rewards as the parameters of each chain changed. Player’s final scores were calculated based on the total staking rewards they earned plus the points they earned from completing different missions.
The AllianceDAO NFT Collection
The GoA was a huge success, with thousands of participants. To thank those who helped test the Alliance module, we’ve created the AllianceDAO NFT collection: an NFT collection that harnesses the power of Alliance to provide LUNA rewards to NFT holders.
Anyone who participated in the GoA and staked at least one asset will be eligible to receive an AllianceDAO NFT. To reward participants with higher scores, the NFTs will vary in rarity depending on a user’s GoA score. To determine each participant’s ranking, scores were tallied during the game, and final scores were calculated by multiplying a user’s mission score by the amount of staking rewards claimed. Higher-scoring players will receive an NFT with a corresponding rarity score.
Upon launch, users will be able to stake their NFTs on Enterprise DAO to participate in governance and collectively determine future plans for the AllianceDAO. There will be an open claim period for the NFT where GoA participants can connect an eligible wallet to the claim site and mint their NFT.
The Story
The artwork and story behind the AllianceDAO NFT collection will be fully revealed in a future article, but we’re so excited about it that we’ll tease it a bit now 😉
Imagine, millions of years from now, that there are 10 planets scattered throughout the universe that support humanoid life. Each of these planets has a unique climate. One planet is rocky and mountainous, and another is mostly jungle, teeming with plant and animal life. One planet is fiery, with lava lakes and crimson skies. There is also a water planet, an ice planet, and a desert planet. Some planets are so strange, we don’t have categories for them. The inhabitants of each of these planets have their own distinct cultures adapted to their surroundings, and they are each in distinct stages of technological advancement. These inhabitants don’t know about each other, and for the most part, they believe they are the only life in existence.
One day, a strange and impossible event occurred: in an instant and without warning, around 1,000 people from each planet vanished and were randomly transported to one of the other 9 inhabited planets. Some inhabitants were even transported to a random part of their home planet. In total, 10,000 people were displaced to a new, foreign environment.
The artwork for this NFT is a snapshot of these unexpected travelers shortly after appearing in their new surroundings. It will be up to NFT holders to continue the story, to discover why this event occurred, how each planet will respond, and the alliances that must be formed to bring these travelers home.
How do AllianceDAO NFTs Work?
The same smart contract that mints the AllianceDAO NFTs will also mint an asset called “Ally.” This asset will be solely owned by the contract, and will never be transferred to anyone outside of the contract. To leverage the power of Alliance, the “Ally” token will be whitelisted as an Alliance asset on Terra via a governance proposal, enabling the token to earn a portion of LUNA staking rewards. The proposed Reward Weight for “Ally” will be .008 — or 0.72% of total LUNA staking rewards — and the Take Rate will be 0. Upon the proposal’s passing, the AllianceDAO contract will stake Ally to start earning LUNA rewards. The delegation of the asset will be controlled by AllianceDAO governance and can be changed at any time. Staking rewards will be collected periodically using Warp Protocol and stored in the AllianceDAO contract.
After the contract collects the staking rewards, each NFT will accrue rewards at an equal rate. At any point, NFT holders can connect their Station wallet to the AllianceDAO NFT website and “break” their NFT to claim their LUNA rewards. Importantly, NFT rewards can only be claimed once per NFT. Once an NFT has been broken, no more Alliance staking rewards will accrue to it. Although broken NFTs no longer accrue Alliance staking rewards, they can still be staked to the DAO on Enterprise to participate in governance.
Each “unbroken” NFT will receive an equal proportion of the ever-growing Alliance reward pool. As users break their NFTs to claim rewards, the amount of outstanding, unbroken NFTs gets smaller, and their share of the reward pool gets larger.
For example, if you own one of 9,000 “unbroken” NFTs, your NFT represents 1/9000 of the pool. If 5,000 people break their NFTs, the number of unbroken NFTs will shrink, and your claim on the pool becomes 1/4000 of the pool. The longer you hold your NFT without breaking it, the greater your reward will be.
AllianceDAO NFTs are transferable, which means that if you send an unbroken NFT to someone, the wallet in possession of the NFT will be the only user that can claim the LUNA rewards.
The AllianceDAO site (which will be unveiled in the coming weeks) will display how many rewards your NFT holds and will allow you to mint, view, and collect rewards from your NFT. In the future, the DAO may consider letting users “mend” their NFTs to once again accrue rewards by updating the contract.
AllianceDAO
The AllianceDAO will be created using Enterprise DAO, a no-code DAO platform. NFT holders will be able to stake their NFTs to the DAO to participate in governance and vote on important decisions, such as which validators to stake the NFTs’ underlying “Ally” token to and how to manage the DAO’s treasury.
The AllianceDAO has the opportunity to be instrumental in driving the adoption and evolution of the Alliance module across Cosmos. Working alongside the Terra community, AllianceDAO members can create and foster new Alliances between Terra and other chains and conceptualize creative, groundbreaking projects for the betterment of allied chains.
Claim Eligibility
Any user who created a wallet for the Game of Alliance and had at least one staking transaction while playing will be eligible to claim an AllianceDAO NFT. In order to be Sybil resistant and make the claim process as fair as possible, the claim is limited to 1 NFT per IP address that participated. If you participated with multiple wallets using the same IP address, only the wallet address with the highest GoA score will be eligible for the claim. Final scores for users with multiple wallets were calculated by adding all the points earned by each wallet. NFT rarity will be determined by your final score — higher scores will claim more rare NFTs.
Claim Process
The claim date and website link will be announced in the coming weeks, so be on the lookout! Follow @The_AllianceDAO for the official announcement. Once live, users will be able to visit the claim site and connect their Station wallets. Make sure you are connecting with the same address you used to participate in the Game of Alliance.
If you created multiple wallets, your NFT will be claimable by the wallet with the highest score. (See the eligibility section above for more details). After connecting your wallet, you’ll be able to see if you have an NFT to claim. If your wallet is eligible, congratulations! You can claim using your Station wallet and receive a newly minted NFT!
After claiming, holders can view their NFTs by connecting their Station wallet to the AllianceDAO website. Users can stake their NFTs to the AllianceDAO in the Enterprise DAO app.
Any NFTs that remain unclaimed after the end of the claim period will be minted and immediately sent to the AllianceDAO treasury. From there, AllianceDAO stakers can decide what to do with them. One idea is to send them to a marketplace to be sold, and the proceeds of the sale would go back to the DAO’s treasury or be distributed amongst AllianceDAO stakers. AllianceDAO can also register their NFT contract in Terra’s FeeShare module to collect revenue from AllianceDAO NFT transaction fees. The DAO’s future is filled with endless possibilities!
Stay up-to-date on the latest news, including claim dates and details about the NFT artwork and backstory by following @The_AllianceDAO on X/Twitter.
