NFT DAO by Mintable - FAQ
It’s the first time a DAO is built using only NFTs and as such there are many questions related to how it will work.
Since our recent announcement for Mintable V2.0, we’ve been receiving numerous questions relating to our upcoming NFT DAO launch. Just like any early innovations, there will be plenty of questions asked and we would like to address them in this article! Meanwhile, a huge shout out to the cryptocurrency community for featuring Mintable!
Layer1 Crypto Show: https://www.youtube.com/watch?v=zDrqQ0X3nuM
Q: “Is NFT DAO a new fair launch?”
A: Yep, Mintable NFT DAO is owned and governed by the community from the outset with all participants starting on equal footing. Every vote is either earned from interacting on the platform or from directly supporting us by buying the votes from a bonding curve. This allows for the governance to be in the hands of people who have a stake in our platform, governed by the people who use it the most.
Q: “How are NFTs solving participation apathy?”
A: Unlike ERC20 governance tokens that will be exposed to market manipulation risks, speculations are not possible with NFTs. Since $MINT NFT token holders are not in it for a quick buck to ride the token’s price — there will be higher participation as holders are actually participating in the platform. Every time any transaction occurs on the Mintable marketplace — the buyer and seller both get votes added to their NFT, encouraging higher participation rate on the platform. Through votes, our community has the power to propose future implementations such as ability to add yield farming/staking into the voting NFTs or add revenue earning possibilities from our smart contracts. Being part of Mintable’s DAO opens up various benefits and opportunities for NFT creators!
Q: “How does the discount card relate to the DAO NFTs?” -
Discount card on Mintable.app removes all fees from our platform for life — although it doesn’t have any effect on the DAO. With the discount cards, you will never have to pay any smart contract fees if you own this ERC-721 discount card in the wallet you are using on Mintable.
A: “The people buying NFTs from artists are collectors, which are also looking to turn it over for a profit, right? How is giving these stakeholders governance diff from someone speculating on a coins value gg up? “
It also is given to the seller (artist) in a 50/50 split. Most the people buying NFTs are doing so to support the artists or to collect the NFT, not perform a quick trade.
Q: “What I don’t get, is how building a DAO on top changes the game? And more importantly, how is @rariblecom and @mintable_app DAO different? Or are they actually the same thing said with different words?”
A: Mintable NFT DAO will be completely different from Rarible. For one — we have an actual real DAO smart contract, whereas Rarible doesn’t have a live DAO contract and are doing quasi-voting without any smart contract. Secondly — our DAO runs only on NFTs, whereas Rarible has an ERC-20 called RARI that encourages wash trading on their platform. Wash traders basically buy their own NFT creations for extremely high prices, pumping the value, and also earns ERC20 RARI. Most DAOs built with an ERC-20 governance token leads to many people becoming investors if they want to take part in any form of governance, or worse — governance ran by speculators. Neither is ideal. But Mintable doesn’t like ERC-20s. Since Day 1, we are all about ERC-721 and that will not change. Governance tokens are supposed to be for governance and not speculation. Governance will be a lot easier with NFTs. NFT governance also provides a healthier ecosystem for the DAO and for proposals.
Q: “How do I buy or sell the DAO NFT?”
A: Just like any other NFTs — post it for sale or buy it on Mintable, or Opensea marketplace. You can get more votes by transacting on Mintable marketplace as well! The second method of getting votes is via a bonding curve. The DAO contract will sell NFT votes starting at roughly $2.50 per vote, with only 10 million votes available to be sold. This will allow people to start accumulating votes and earning rewards without having to wait the long game of selling multiple NFTs.
Q: “Maximum number of NFTs?”
A: None — but after all 10 million votes are sold — there won’t be any NFTs given out/minted. Users will be need purchase the voting NFTs on the open marketplace.
Q: “Burn the NFT to vote?”
A: No, you don’t lose votes or the NFT when you vote. The NFT will be locked for the voting period, and once the vote has been finished your NFT is unlocked.
Q: “Not sure how it’s safer but I think it’s defo more effort to be malicious maybe, I like the idea still and think NFTs have a bigger role in governance to play in general. Does it increase GAS costs per purchases by much?”
A: Thank you for your support! By safer, I believe that you are referring to price protection for governance token holders? If so, with $MINT NFT, no one can dump on you. NFTs are not like ERC-20s — even if someone has 50% of all the voting power — its still just a single NFT, or maybe a few. But there will never be a red wick that crashes the price 50%. We understand the pain of high gas fee per transaction. Whales cannot do a flash loan just to sway a vote in one direction. Gas costs have been minimized as much as possible on our upcoming Mintable V2.0 marketplace. We want to make it as cheap as possible for our user to trade NFTs!
If you still have any questions regarding Mintable NFT DAO, feel free to hop onto our Discord server! https://discord.com/invite/FB2br9Q
Mark your calendar
When we go live with Mintable v2.0 so will the DAO. We are aiming to go live at the end of November.
- DAO/Mintable v2.0 goes live: End of November
- Can start earning/buying MINT and NFTs: As soon as it’s live
Mintable.app will be taken down 2 weeks prior to launching and replaced with a landing page as we get closer to launch.