Red Cross reward system

🤝 Help & Improvement
91

Dear all,

We have been proactively investigating to bring as much clarity as possible to the situation. Here are our findings:

  • Before the launch of the DAO (05/29/24), Yobike Studios had partnered with Red Cross to develop 3 experiences to raise funds
    • Yobike was not paid by The Sandbox (TSB) to do so
    • The game development cost was estimated to be around 200k EUR
  • Yobike made a deal with the Red Cross, to
    • develop the experiences and create a collection of 5 NFT
    • The sale price was fixed at 80 SAND for each copy
    • He develop prize pools to boost sales and distribute rewards to the community
    • Eventually split the revenue 70/30, in favor of the Red Cross
  • Neither TSB nor The DAO was part of the discussion between Yobike and the Red Cross
  • After the launch of the DAO, TSB recommended that Yobike make a SIP to finance the prize pools
  • Each 3 out of the 5 NFT sales corresponded to an event in the Sandbox with an end date each time. The last one ended on the 3rd of February
  • Prize pools were determined by NFT ownership at the end of the last event, when the fifth NFT sale ended
  • Rewards will be distributed to the community at the beginning of March, once sales data and identification of NFT holders have been determined
  • The final donation amount for the Red Cross will be communicated in March

In retrospect, this is what the admin team could have done better:

  • Better alignment with the TSB Liveops team in charge of the event page to avoid confusion on the prize pool rules.
  • Having the reward distribution managed by the admin Team directly. In this case, it was not possible as the contract between Red Cross and Yobike (Metavest) was already signed. In the future, the DAO should be the party distributing the prize pools, to have a holistic view of all parties involved. This would have meant better transparency for all.

As Johan mentioned in his message above, he also bought 162x4 NFT for himself. This is not something that was explicitly allowed or forbidden in the SIP. As a result, the impact for all other buyers is as follows:

  • This resulted in reducing the prize pool earning per share from 20 to 27 SAND for the first 3 prize pools
  • We cannot measure the impact for prize pools 4 and 5, as we don’t have the exact number of wallets holding 3 and 4 NFTs at the time the event ended. Only Johan has this data.
  • By buying 162x4 NFT, Yohan also increased the donation to the Red Cross by 11k€

Note: The numbers are preliminary estimated calculations.

Refined data will be provided by Johan ASAP.

Regarding the call by some in the community for the DAO Admin Team to take action against Yobike, very little can be done now. There are no grounds for a ban on participation since Yobike did not violate any of the rules outlined in the SIP. During the advancement of future SIPs with prize pool components, the Admin Team, and surely the community, will scrutinize those sections of the rules to ensure there is no opportunity for behavior that might be deemed questionable by any participants.

HERE is a link to the original SIP.

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