Hello, Winter Bears DAO!

The Winter Bears Team and Community has long envisioned the formation of a powerful WB DAO to empower holders and revolutionize the NFT space. Today, we’re excited to present to you our uniquely sustainable DAO model — a novel combination of passive earnings, traditional market investment, community knowledge, and cutting-edge tokenomics!

Last month, the WB Team connected with tokenomics expert and director of Decentralized Finance at W3B CLOUD, Esfandiar Bejamin Lagevardi (“Essi”); together, we have formulated a one-of-a-kind model that goes far beyond what other projects have achieved to date.

It’s been quite the journey to explore and refine our vision for how to best decentralize the project, and we’re honored to have set off on that journey alongside our unendingly supportive community.

Today, we’d love to clearly outline the WB DAO structure and emphasize just how we’re different from the rest. Enjoy, and stop by our discord to let us know what you think!

Core Values

Before diving in, I think it’s important to examine just what we were trying to achieve by forming the Winter Bears DAO.

Sustainability
Our first priority is building a sustainable model. We want to add value for each and every Winter Bears holder — not just in the short term, but far into the future. To accomplish this, we have built in unique, deflationary mechanisms that will benefit our early community and ensure long-term viability of our token.

Accessibility
Beyond ensuring sustainability, we have prioritized maintaining our community’s founding vision of creating an accessible home for all in the NFT space, regardless of the size of their wallet. At every step we have sought to keep gas costs low, distribute rewards equitably, and create a structure that will allow everyone in the Bear Family to get involved!

Community
Finally, we want to fully empower our community of Winter Bear holders. The WB Fam is our biggest asset — we can think of no better way to ensure the project’s long term success than allowing your cumulative knowledge, passion, and determination to guide us into the future!

Model Overview

The Winter Bears DAO breaks down into three pieces:

1. The WB DAO, which will generate revenue via an 80% cut of all Winter Bears projects (WBs, SBs, and 3DBs) as well as any future projects launched;
2. The WB Vault, which will use DAO funds to acquire and hold high-value NFTS owned by our community;
3. $FROST, a one-of-a-kind deflationary ERC-20 governance token and fully-liquid asset earned through WB staking whose value is directly collateralized (backed) by the acquired assets held in the WB Vault, making it uniquely sustainable.

The DAO

The Winter Bears DAO will be comprised of our most committed community members — those who lock their Winter Bear into our proprietary staking mechanism to earn $FROST. These $FROST holders will be fully empowered to determine the future of our project.

Enter: Summer Bears and 3D Bears.

Because these collections will not be stakeable for frost, their secondary market supply and royalty-earning potential will remain maximized — none are locked-up, so all can be bought/sold. This means both collections become revenue sources for the community — products for the DAO to sell!

SBs will be the first project in NFT history whose utility, marketing, and overall direction will be entirely determined by a decentralized community!

The Vault

The WB DAO will be able to choose what to acquire for the WB Vault once sufficiently funded — not just sweeps of Winter Bears (as it’s already started doing…), but purchases of anything our community can imagine! No NFT will be out of reach once we’re in full motion.

Together the WB Community will collaborate to build a valuable bank of NFTs, drawing in outside investors and increasing the value of the Vault and our governance token, $FROST.

This DAO+Vault model has been done before, but the innovation of the WB DAO comes in its revolutionary tokenomics, combining a series of “known” features into an entirely unique model that will ensure sustainable and reliable value for our community for years to come.

The Token

As more and more value enters the NFT vault, we will use these assets to collateralize an ERC-20 token, $FROST.

• $FROST is a liquid asset, which community members and investors can trade easily for other tokens (like ETH) using the Uniswap exchange.
• $FROST will provide diversified exposure to the blue chip assets within the NFT vault as it is directly backed by these assets (think “like the gold standard”). That means that we will only ever create $FROST as value is added to the vault, ensuring its value is always 100% secure.
• $FROST will also serve as the WB DAO’s governance token, rewarding our core community members with increased control over the project’s direction because long-term stakers and owners of many bears will hold a larger share of $FROST.

There are three ways to obtain $FROST:
1. Stake your Winter Bears to receive your share of newly created tokens
2. Deposit ETH or whitelisted NFTs into the vault to mint new tokens
3. Buy FROST from the open market (Uniswap pool)

A uniquely deflationary token:
The issuance of $FROST tokens is deflationary relative to the value added to the Vault. This means that fewer and fewer $FROST tokens are created over time. For example:

• 1 ETH of value entering the vault might result in 1,000 $FROST being created upon the DAO’s launch.
• The same 1 ETH entering on week 10 however might result in only 900 tokens being created for stakers.

With this method, $FROST tokens become more and more valuable over time as they are redeemable for an ever-increasing share of the Vault. The DAO’s ability to add on top of this other “sinks” — or supply reductions — only grows the token’s deflationary potential.

These strong tokenomics will likely lead to widespread investment in the $FROST token, raising the yield for all who stake their Winter Bears. We’re already in talks to facilitate strong growth out the gate…

The Staking

Those who choose to benefit from the DAO model can lockup their Winter Bears in our staking contract. Unlike other projects that guarantee a steady stream of tokens, regardless of the economics of the DAO, $FROST will only ever be created proportional to real value entering the Vault:

• $FROST will be fully collateralized by the value of the NFTs in the vault, meaning that if the DAO invests $1 million of ETH on NFTs, we will mint $FROST tokens with an initial market cap of $1 million.
• It is likely that the market will introduce a speculative premium above the initial market cap. This is because, for non-holder investors in the token, $FROST will provide a liquid means to invest in a diversified basket of blue chip NFTs!

All of this means we can safeguard the value of the $FROST token from unpredictable market fluctuations. Such safeguards prioritize sustainable, long-run earnings for our community members rather than flashy, unreliable, short-term returns like other DAO models to date.

This long-run sustainability is only amplified by the token’s unique deflationary tokenomics.

What’s Next

We’re hard at work building the staking contract and $FROST token, which due to our recently-introduced bonus features will take several weeks to finalize and review. Rest assured, we are not going to rush and expose our community and their precious bears to something that is not fully secure!

In the meantime we will be:
— Gathering 80% of royalties into the DAO’s wallet (began 1/1/22),
— Sweeping Winter Bears (30 WBs in DAO Vault as of 1/25/22),
— Introducing an innovative bidding bot (planned 1/27/22),
— Launching Discord DAO polls on what NFTs to acquire (planned 1/27/22),

Full governance will use the $FROST token, which will not be introduced until we have a strong vault of NFTs to use as collateral.

As astute community members may have noticed, we are building out stronger engagement routes to be sure every action we take and every value we hold fully aligns with the WB Family ❤

Our Team

Nushi — Project Lead
Ophidian — Developer Lead
GumptionBear — Creative Lead
Jano — Marketing Manager
Brisko — Community Manager