There is a famous Argentine tango, which sings to a coffee shop “when I was a little boy I looked at you from the outside, like those things you never reach”. If that was ever your feeling when looking at the unattainable prices of “blue chip” NFTs, MonsterDAO may be the solution to your sorrow.
As you may have read in this blog, DAOs have come to revolutionize the way we organize ourselves and their objectives are extremely varied. One of them may be to pool resources, overcome economic barriers and buy NFTs.
In this article, I will tell you what MonsterDAO is and how this project, born in the core of a community highly involved in the NFT world, brings a new and interesting concept.
MonsterDAO is an autonomous and decentralized organization, created in the Terra network, whose objective is, through the union of forces and capital, to acquire NFTs and share the benefits of their ownership among the members of the DAO. In the future, this project does not rule out getting involved in “play to earn” games, metaverses or DeFi platforms.
Now, when this DAO refers to “acquiring NFTs”, it does not refer to just any kind of them. As I mentioned in the introduction the objective is to get hold of NFTs under the label of “blue chips”.
If you’re on the other side of the screen wondering, what does this categorization mean? I’ll tell you right now.
This term is not specific to the world of non-fungible tokens. It is a transpolation from the world of traditional finance. There, “blue chip stocks” are defined as shares of companies considered “reliable investments”.
Coca-Cola, IBM and General Motors are clear examples of this. We are talking about companies with decades in the market, large capitalization and a long history of success.
Now, are there any NFT projects that meet exactly these characteristics? Undoubtedly, the answer is no. CryptoPunks, a pioneer NFT collection in the environment, is barely more than four years old and its time is even more limited, if we refer to its arrival to the “mainstream”.
Then, like any analogy or extrapolation of terms between different fields, it is necessary to make clarifications or adaptations in order not to miss the truth. The question is obvious…
We know now, that the main characteristic of a traditional blue chip is a lower exposure to risk. But, in crypto, risk exists in large quantities from the moment we enter.
However, it is possible to deploy a list of features, which could make an NFT project “blue chip”. Like the blocks of a blockchain, each feature is related to the previous one, let’s see how.
The main feature is, in my eyes, a narrative that encourages users to be part of it and to form a community. Whether it is the idea of belonging to an “exclusive club”, being the first NFT project of a blockchain or honoring the memory of the “Cypher Punks” who gave the philosophical kick start to create this thriving ecosystem. The narrative must captivate and align goals to create a community.
Consequently, the narrative, should feed into the utility that these NFTs can provide to their holders. On the Terra blockchain, the Galactic Punks project, formed a DAO. Each member, “holder” of a Galactic Punk, shares in the profits this organization makes from their investments, which, of course, are voted on by themselves. Narrative, community and utility merge in projects of this style.
Undoubtedly, the above characteristics are of no use without a sales volume and liquidity that justify the adoption of a project, from the point of view of return on investment. Sustaining this point, in the long term, is a hyper-necessary condition to be a “blue chip”.
The fourth item on the list owes its importance to the fact that we, the users, are entrusting our money to pieces of code developed by people. The more renowned, experienced and reputable those involved in this process, the developers, the greater the community’s support. The same is true for the artists behind the design of NFTs.
Finally, this set of features, when combined in the necessary magical proportions, ends up attracting the attention of celebrities. At the risk of sounding frivolous, Jimmy Fallon or Eminem changing their image on Twitter for a “Bored Ape” only adds long-term value to the project. The same effect, or even greater, is caused by the support of important figures in the crypto environment.
In short, when a collection meets these conditions, we could be talking about a “blue chip” NFT. Examples such as CryptoPunks or Bored Apes are the first that cross our minds, but there are undoubtedly incipient projects that will fit this categorization.
Perhaps this explanation has triggered a new question, how will MonsterDAO manage to hit the nail on the head when targeting “blue chip” NFTs? I discuss this in the next section.
This DAO, like many others, finds its “head quarter” in its own Discord channel. Voting, interactions among its members, proposals, consultations and presentation of news can be found by entering this platform. But, to understand how MonsterDAO works, we must first know how it will be structured.
To become a member of this organization, it will be necessary to own at least one NFT Monster. This collection will be composed of 10,000 of these little monsters that will be released in different stages. Beyond giving access to the benefits of participating in this organization, these NFT Monsters have great value due to their attractive and particular design. Each one of these monsters has unique traits and an outstanding visual appeal provided by each of its 3 dimensions.
What is the release date of MonsterNFT?
The first stage, to be held in mid to late March, will give birth to the “Genesis Monster”. This first collection of only 1,000 NFT will enable coveted early access to the DAO and, therefore, to its benefits.
Ownership of a MonsterNFT will allow each member to have access to the information collected by the DAO, a share in the profits derived from the blue chip NFTs acquired, and voting rights on the two issues vital to the primary objective:
One of the fun MonsterNFT, designed in 3D and, each one. endowed with unique features.
This organization will have a group called “the Council”. These “seats” will be occupied by the founding members, all of them coming from the thriving community baptized NFTamina, who have a great experience and a keen eye for analyzing NFT projects, plus users who are proposed by the community.
The Council’s role will be to curate NFT projects, whether they are established blue chips or potential blue chips. Once this task is completed, they will create the proposals that the DAO will vote on.
The answer is simple, but it takes work and willingness. Get involved and prove your worth. Beyond the founding members, users who demonstrate, through their interactions, willingness and expertise to be members of the “Council”, may be proposed and voted by the DAO to join this group.
Now, let’s look at the practical part.
It is clear that the sale of MonsterNFTs will initially be the main source of income for this organization. Subsequently, the funds of this DAO will be fed by the royalty on the sale of MonsterNFTs in the secondary market, which will be 7.5%.
However, the long-term objective is for the main source to be the income generated from the DAO’s holdings, the famous NFT “blue chips” that it manages to acquire.
Revenues from mining events, as well as royalties from MonsterNFT sales in the secondary market, will be distributed at the following percentages:
The development fund will be used to pay for server maintenance, operations, web and smart contract development, marketing and any legal related expenses.
On the other hand, the treasury fund will provide the necessary liquidity to purchase the NFTs approved by the DAO through the corresponding votes.
Let’s recap this mountain of information.
What does MonsterDAO solve? The impossibility of accessing blue chip NFTs and their benefits, given their high cost.
How to be part of it: “Minteando” or buying a Monster NFT.
Who analyzes what to buy? The Council, but any member can submit a proposal.
How are decisions made? By vote of the members.
Where does all this happen? On your Discord channel.
The next steps of the project are perhaps the most important. In addition to the recent publication of its White Paper, the “Mint Genesis” will take place in mid to late March.
Only 1,000 NFT will be minted in this event, distributed in two phases. The first phase is reserved for 300 wallets, which will be able to mint one NFT each. The lucky ones will be those who have the role of “OG” in the Discord channel. Obtained by a quick login or in the different draws via twitter. Stay tuned!
The second phase, which will be open to the public, will ” mint” the remaining 700. Each NFT will cost 200 UST or its equivalent in LUNA. These NFT will be special, since having a “Genesis Monster” will give access to the whitelist of the next “mints” to be carried forward.
The team’s next steps are as follows:
Countless times we have read “not everything can be decentralized”. We cannot dispute that this phrase has a high degree of reason. But when it comes to organizations, decentralization can provide them with a succulent spice, the feeling of parity.
Human beings tend to want to be part of something that exceeds our limits. A social movement, a sports team or a philosophical current are clear examples.
The decentralization of organizations adds a new ingredient to this long list. An ingredient that allows any member to have a real voice and vote, while being able to feel at the same level as their peers. We cannot deny that, at the very least, it sounds promising.
What will be interesting will be to see how this new type of organization finds its place in the competitive real world and how it manages to harmonize the desires and egos of its members in order to survive over time. In the meantime, MonsterDAO takes to the field, to give us one more case study.