SIP-9: Mandate for DAO NFT Collection Management

🎯 Past SIPs Rejected
21

Thanks for your feedback !

Honestly there aren’t many people in our space with the skill set neccesarly to pursue this mission but I understand that’s you’d like to have someone that is part of your community.

I believe being compensated for a mission is the best way to ensure that you can find a motivated and professional person to ensure the success of the project…

It is in my best interest that this project perform well, as a matter of fact it’s a matter of reputation haha

Happy to provide whatever be needed to convince you that I have the best interest for the dao in mind.

22

The thing that would convince me that you had the best interest for the DAO in Mind would be if you were invested in the project. If you have Land I would not even question your motives. You would stand to benefit from the success of the project in that case. If you have a significant holding it would go far in helping achieve your stated goal anyway.

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23

I understand.

It’s important to have your mouth were your money is and I can agree on that much.

Thing is I’m heavily involve in art, both in web 3 and in trad art. If I were focus on metaverse I might have never develop a sufficient experience to candidate to that position.

To be fair it’s hard to say how much will a curated collection will benefit land owner down the line.

It’s odd to pe as experience to put myself out there as most of my activities must be highly confidential as per tradition.

By going through this process I am putting my hard earned reputation on the line. If anything. That’s the most important thing for any art professional.

Again I understand,m and I appreciate you taking the time to clarify your position.

Best,
Brian Beccafico

24

To me the point of Web3 is putting your money where your mouth is. It has been traditional in capitalist society for folks to get paid regardless of the result. It sounds like 30000 pounds is the price regardless of the outcome. To take a hard stance on not investing and asking people to invest in your reputation is pretty old school.

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25

Sure ! The art market despite of the NFT waves has remains quite old schools.

I’m very much open to the ideals of web3, although most people that used those were generally unprofessional and amateurish, trying to extract value without offering anything in return.

I’m super happy to do reporting and be paid on the basis of success, it’s just a challenge to define what means success when building up a collection.

What would be your metric of sucess for that mission ?

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26

Read this and just had to list a few concerns if you all are open to feedback… :notebook_with_decorative_cover:

  • Financial Risks: The NFT market is really unpredictable. If this curated art doesn’t do well, we might lose money that could be used for improving our game features, events, and supporting created experiences.
    Misalignment of Interests: The focus on curated art might not resonate with the core gaming community. Gamers might prefer investments in game development or features rather than art collections, potentially leading to disengagement.
  • Reputation/Credibility: Handing over control to an outside entity means placing a lot of trust in them. If they fail or act against our interests, it could harm our community and Sandbox reputation.
    Conflict of Interest: There’s a risk of potential conflicts if the third party has other clients or investments. For example, “private deals” could lead to biased decisions. We need to ensure that their focus remains solely on our collection and that the €30,000 budget is used transparently, without any favoritism or conflicts arising from their other commitments.
    Risk Mitigation: If we approve this proposal, what safeguards are in place if the third party doesn’t deliver as promised? Also, are we prepared for the possibility that managing this may require another four months and potentially involve the same team again? It’s important to understand if this is part of the plan and how we’ll handle any ongoing management or additional costs before committing the full €30,000 budget.

I’m invested just like the rest of you all and am simply bringing up things some of us may be thinking about. :brain:

Concerned Community Member,
HGH

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27

Nice, those are some fair things to bring up HGH. I’m especially wondering about the risk mitigation piece @Arthemort

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28

Dear HGH,

Thank you for expressing your concern so genuinely, I understand your cautiouness my vision is different so here’s my responses to the points you’ve raised.

  • Financial Risks:
    I’ve been navigating this market successfully since its inception. Leaving this collection unattended will not make it do well if anything it’s already losing money.
    The objective through downsizing this collection to a few hundred of highly curated item make it more manageable in the event of a liquidation the dao will be able to access this money much more easily.

  • Misalignment of Interests:
    It is my mission to make it resonate, the video game industry is a creative and cultural industry. Art is a huge part of what makes any game appealing and engaging. The onboarding potential of game free creative will surely make the sand box a better game over all.

  • Reputation/Credibility:Totally agree with you here, my reputation is super precious to me if I was unconvinced of my own skill I will not put myself publicly like that. Would be much more confortable to simply deal with a curtain of confidentiality as standard in my industry. As in any mandate the community need a counter power therefore I suggested a system were the council could impeach the mandated person if they were to act against the interest of the dao.

  • Conflict of Interest: That’s why we’re two in the team !I do have other client and investment in this market indeed. Some under NDA but I’m fully transparent for the rest of them, yes I have privileged relationships with the best artist, collector and builder of this space and I would be a fool not to leverage them. Private deal as private in the way that there not simply offer or bid on opensea but they’ll be totally part of the quarterly reporting. Buying art is in any cases always a bias decision most of the work is to be aware of your own bias and the one of your client to make the right decision. I’d be happy to submit to any form of process that will reassure you about my integrity.

  • Risk Mitigation:
    This 4 month period was agree with Cyril form the sand box team for a comptabilité point of view. Building up a collection takes time and will require another SIP for a new mandate in January (for the entire year this time)

If I don’t deliver you could start legal action for breach of contract. If anything it would ruin my reputation which I cannot survive to: The budget of the SIP is largely the budget meant for the exhibition not my remuneration. Next time we’ll have individual sip for each exhibition project because the budget can vary completely depending on the period, place, ect

Hope those information ease your concern a bit in any case, I appreciate you taking the time to write to me.

29

Hey Lanzer,

Thanks you so much for your vote btw. Answered to HGH but I’ll develop a bit more here.

You know the art market is a reputational and trust based system that’s one of the reason why blockchain system offer such an innovation to it.

I understand that those are difficult thing to put forward as a garantee for anything. It’s standard in my industry, if you make a mistake you’re toasted for life.

I guess we could entrust the council to safeguard that, I have everything to lose by not doing my job.

As any starting relationship I understand you need to double effort to ensure and convince your business partner of your loyalties and goodwill hence I’m willing to do reporting on a monthly basis rather than quarterly for the first mandate if that can ease some concern.

As a community you are the one in charge of deciding what your vision of counter power, I’d be happy to oblige to any safeguarding process you’d be In capacity to put in place.

Asking me about it, is a little counterintuitive at heart. I know what I’m risking, my reputation and the trust people in the council have in me.

If risking money from my end is something require from the community to trust me I can understand and I’d be willing to do it if I agree with the condition.

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30

Don’t let anyone twist your arm to support our Project.

31

From the feed back I have received it’s seems there is a large frustration toward the budget allocation of TSB having wasted so much money on « art » this past few years, rather than developing the core of their game.

I can’t do much about that, and I understand you guys want to send a message about « no more art ». I just think there is one final chance to make it right.

Believe me as an art professional it’s also frustrating to see on what was this money wasted on (not art btw but collectible)

Now we are at a moment where you can decide, do we leave those 3 M + worth of assset to rot and go to zero or do we try to at least make it right in the end and hoptefully have it become something that will benefit the dao.

32

Hello @Arthemort
Your profile picture shows a section of The Son of Man painting by René Magritte that is still under copyright. It is copyright-free in China which has a lower “50 years since author’s death” rule to enter public domain. But in Europe and the US it’s still under copyright as we have 70 years rule. The Magritte died in 1967. so there is still 13 years to go till it becomes public domain everywhere. :wink:

33

Hello Tom,

Indeed !

I have had discussion with the ADAGP who are managing the patrimonial right of the Magritte estate in France.

Told them the reason I was using the son of the man as a pfp and the personal story I have with it.

I have an informal agreement with the estate to be able to use this pfp for personal branding.

They assure me they would not DMCA me unless I was suddenly deemed unfit to use it until it become public domain.

Glad to meet someone with an interest regarding copyright law

Best regard,
Brian

34

Hi @Arthemort, I have a few clarifications I hope to get addressed before reaffirming my vote on the SIP.

As I see it, it is a forward thinking idea for the DAO team to reconsider the contents within the Sandbox collection in the midst of handing over the responsibility to the DAO.

You’ve also mentioned that a bulk of the value derived from the collection comes from PFPs.

  1. Are the intentions to dispose most, if not all of said PFPs?

  2. How do you intend to dispose of said assets. The reason I bring this up is because there has been a couple of times in recent history that there’s been displeasure from the Apecoin DAO community with regards to the way TSB has used it’s votes (approx 300k VP). This contentious relationship may yet worsen if the related assets are dumped onto the market indiscriminately.

  3. Do you expect the total disposal/acquisition value in terms of ETH or any liquid assets, to be net positive at the end of your 1st tenure? (For clearer understanding: will the DAO treasury gain value in terms of ETH)

Thanks for your time.

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35

Hello there,

Happy to provide clarification.
Yeah I realize that the transfer of this collection is recent news for the majority of the community. Therefor it’s needed to familiarize yourself with what’s in it to decide what the proper course of action for its future.

  1. Are the intentions to dispose most, if not all of said PFPs?

Basically yes, anything that isn’t vaulted would be at term sold. The question remains what should be vaulted, to me that include of course any SANDBOX related asset such as land the question remain if that include « associated » project like world of woman cyberkong and so on. I’d like to have the community input on that. In one hand those were acquire to support those project at launch maybe that’s sufficient effort and it would be morally ok to dispose of them, on the other hand those community behind these pfp project participate a lot to the growth of TSB and its related IPs…

I believe that the best course of action is to discuss with the stakeholders of those project directly to part away with those item in a way that benefit everyone. It can be priority sell to the project themself so they can buy back supply, it can be swap deals for art so it doesn’t impact the floor, preferable private deals with dao members part of thoses pfp community.

It is clear that managing 1400 + asset come with a lot of operational burden and the objective is to scale it down to just a few hundred with more individual value as this will make this collection much more easier to liquidate in a mid to long term horizon if need be.

  1. How do you intend to dispose of said assets.(….) Ape coin

I am aware and worried about that as well going back to my prior point above flooring NFT isn’t the only way to sell them.

For Yuga related asset for instance those can be loaned with an usually good loan to value. Hence we could gain some liquidity from it without selling them. On top of the other system mentioned above if we were to basically list them on Opensea then I would implement a ventilation strategy (in clear not selling them all at once) avoiding any supply shock to those collection.

  1. Do you expect the total disposal/acquisition value in terms of ETH or any liquid assets, to be net positive at the end of your 1st tenure?

A lot of those asset are not event worth the gas to be transferred, I aim to be smart about cost management but there will inevitably be a lot for this first quarter, as the first tenure is sell intensive that suggest a lot of cost that will mathematically have a direct impact on the virtual ETH liquidity at our disposal.

Once the art is purchased from my experience at Sothebys with producing estimate I believe I will be able to provide a realistic although conservative valuation of the art collection . It’s something that require constant updating however.

Art in general gain value at a large horizon, the NFT flipping bubble was a special period , I don’t think that at this stage we have the operational flexibility, ressource and capacity to implement a transaction heavy flipping strategy as blur farmer does for instance.

I don’t think a couple of month is sufficient to make a profit on the virtual estimated liquid value of the purchased art if we factor in all the cost. The best chance at that would be through prioritizing primary market drop with an optimal entry point in a performant category such as AI art rather than buying blue chip art on the 2nd market. But then again there is no way I can offer a guarantee on that in such limited time frame.

As I mentioned in the SIP I offer art advisory not financial advisory. The treasury net gain in absolute value is too challenging to evaluate at this stage and not something I would take as metric of success for the first term. It would be sincerely fallacious from me to tell you « yes I’m certain of it ». The only aspect I can outline is that it’s always better to diversify when investing in anything and the same goes for art. As it’s stand the collection will worth less in December than what it worth now if nothing is done. It already went down more than 10% since the Audit was originally done.

Hope that helps,
Sorry for the long answer it’s challenging to synthesize those arguments.

Best,
Brian

1 Like
36

Not sure if my reply was under your question check below

37

Not sure what you mean by that Daruth

38

Thanks for the reply.

As to your question about disposal of PFPs:

This is currently what’s in the wallet of “TheSandboxGame” that is not directly related to TSB(collection size worth >5eth):

30 BAYC worth approx. 300eth.
11 Bored Ape Chemistry serums worth approx 53eth.
21 MAYC worth approx. 30eth.
2 Pudgy Penguins worth 17eth.
9 Mocaverse worth 17eth.
7 Doodles worth 12eth.
35 BAKC worth 9.5eth.
2 CyberKongz worth 9eth.
2 Azuki worth 8eth
30 WOWs worth 7.4eth
7 Memeland Potatoz worth 5eth

The total value as of today is an estimated 468eth, or an estimated 4,680,000 SAND.

It is of course, not my opinion to liquidate everything, because, as you’ve mentioned, some, have an indirect association with us, for example, Mocaverse, WoW and CyberKongz just to name a few, and I believe Apecoin DAO has plans to build within TSB on their plot of land(will need further update on that). I believe Cyril will be able to advise you better on our various relationships.

My opinion, is to keep a quantity of not more than 5 of each PFP asset. Sell the excess assets by way of the ventilation strategy, or private deals. After said sales has happened, my recommendation is to return 50-75% of that ETH to the DAO treasury. The remaining can then be use for acquisition of said art assets that you mentioned in the SIP.

It is my belief that the community will be more open to the idea of your current SIP if they can see a tangible return of value to the DAO treasury.

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39

Also, i’d like to clarify that I wouldn’t expect you to show profits on the assets that you’ve purchased within the 3 months tenure. What I meant more was that in the whole disposal/acquisition process during that 3 months, it’d be good to have net tangible positive value in terms of ETH, due, in large part, to the disposal of assets.

However I do understand that that’s outside of your jobscope as per the SIP, so I’d understand if that conclusion cannot be reached.

40

Bonjour, navré de répondre en français mais le sujet nécessite que j’exprime mes idées le plus clairement possible.
(Les anglophones vous allez découvrir l’option “translate” :wink: )

Ma crainte majeur est une main mise sur la collection, d’une part (une peur un peu paradoxal peut-être, étant donné que c’est une collection privée offerte à la DAO, si j’ai bien compris) et d’autre part la liquidation de la collection à notre plus grande perte.
Le marché nfts n’ayant jamais été aussi mauvais, il semble que le moment pour vendre soit inapproprié. Mais ton discours se veut rassurant quand à la nature des ventes et des volumes envisagés alors malgré ma tendance “main de diamant” j’ai bien envie de te dire oui, allons-y, soyons ouvert et acceptons cette première étape afin de te permettre de nous proposer les SIP qui te semble pertinents.

  • Après avoir vu l’ensemble de l’interview j’ai beaucoup moins de questions mais des points importants m’ont échappé.

1- Est-ce que chaque dépenses ou ventes sera soumise à la DAO ?
2- Un évènement à 50k /semaine à Paris ne semble pas indispensable, c’est un gros point négatif à mon sens, d’où l’importance de la question 1 ci-dessus.
3- Arthemort reste un pseudo, se doxer soi même peut nous rassurer…peut-être.
4 - Quelles seront clairement tes “autorisations” ?

Je dois admettre que, bien que réticent au départ, la proposition me semble très pertinente et je rejoins ton discours quand à l’aspect éducatif de ce SIP.
Grâce à ton désir d’implication dans la DAO, c’est le monde de l’art qui ouvre ses portes, une passerelle se crée, de nouvelles perspectives apparaissent…passionnant.
En tant qu’artiste (MdA) je ne peux que saluer cet effort, et j’espère que d’une façon ou d’une autre les artistes de la sandfam, que ce soit des pixel/voxel artist/ des palsticiens/ photographes/ réalisateurs/ etc…, seront mis en avant ou du moins représentés.

Voilà plus ou moins ce que je souhaitais partagé, bien que ce sujet passionnant mérite bien plus, ce n’est que le début de cette aventure.
J’aimerais voté oui, mais j’ai besoin d’avoir les réponses aux questions posées ci-dessus.
Merci et encore bravo pour la démarche.

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