Flipper.tool NFT project grant request

Title: Flipper.tool

Authors: @DavidBankless#4680, @gecko007#6813, yacht_tea_Ed#3789

Date: November 9th, 2021

Summary

BanklessDAO is looking for revenue streams and it should look for bigger exposure in the NFT market. Flipper.zone is an NFT tool that would provide a revenue stream for the DAO by giving a real added value and a professional tool to all NFT collectors and degens out there, and we all know how crazy that growth is. This would be a one-of-a-kind project.

BACKGROUND

It is clear that the NFT market is on the rise and there are not enough tools for collectors and traders to use. We’ve decided to create our own tool which will provide people with some of the best NFT tools and return some of the revenue back to BanklessDAO. Our tool will have unique features, as well as the features users, have come to expect from an NFT tool. We plan to optimize these features, to create an all-in-one tool, so users won’t need to switch between platforms.

This project is an opportunity to leverage the power of the BanklessDAO. The DAO has amazing creatives, builders, and a growing number of NFT enthusiasts. Harnessing the power of our members provides us with a strong chance of succeeding in the market, as together we have a strong body and a sharp mind.

Creating a tool, with the support of the BanklessDAO, gives the DAO exposure and recognition in the NFT world. It further solidifies the DAO as a professional body that can build and deliver valuable products in the crypto space.

MISSION & VALUES ALIGNMENT

This project will provide highly useful and professional tools that have not yet been seen on the market. The timing is perfect, as the NFT market is gearing up for another bull run. We anticipate the next wave to be significantly larger than the last one we saw over the summer. This gives BanklessDAO a perfect opportunity to give web3 users a tool they can trust and that creates added value to them. This will help users be more confident in valuing and trading NFTs. Additionally, this project will create a revenue stream for BanklessDAO. BanklessDAO will receive 10% of all secondary revenue generated by this tool. By contributing to the DAO’s cash flow, as well as providing the DAO exposure to the NFT market, we will be able to spread the Bankless mission further.

RESEARCH

SPECIFICATION

Project mission

This project’s target will be to build an NFT tool that will be composed of multiple different tools. An all-in-one tool that will be highly valuable to our users. The tool should be self-sustainable in the long term, with the team continuing to build and integrate new features as the NFT market grows and evolves. We will start with the building of a web app focused on our signature feature, integrating other tools into it over time.

Based on our extensive market research and experience, we’ve decided on which tools we should implement for our standalone web app.

Current Development:

  • Ideal sell price calculator (signature feature)
  • Early metadata pulls
  • Rarity calculator based on metadata
  • WETH mass offerer
  • OpenSea API integration for quick buys and quick sells

Future Development:

  • Multiple rarity score calculations, with a Best Fit determination to help user decide
  • Support for upcoming marketplaces: CoinbaseNFT & ShoyuNFT platform
  • Continuous development and refinement of features based on community input

As this project will establish a revenue stream for the DAO, we are requesting start-up funding support.

Project monetization

Access to the tool will require users to hold a pass, which will be an ERC-721 token. As we will be using the ERC-721 standard, people will be able to trade the memberships on the secondary market, and secondary sales will bring revenue back to the project. Project revenue will include an initial mint, as well as ongoing secondary sales. The secondary market royalties will be 10%, which will go back to the project multi-sig. Bankless DAO will receive 10% of these secondary sales royalties.

There will be 500-lifetime all-access memberships starting at a price of 0.1 ETH with a bonding curve up to 0.5 ETH. This would bring approximately 150 ETH into our multi-sig. The DAO should be able to finance us until we are sold out, after that, we should be able to stand on our own legs. In the future, we plan to release separate NFTs for every single one of our features, as someone might only need access to a specific tool and not the full package. The separation of features into individual passes will further contribute to our overall project revenue.

Project revenue

Primary sales from the mint will go to the project multi-sig. All of the secondary sales will be split based on the following percentages (this will be hard-written in the smart contract):

  • 90% - Project Multisig
  • 10% - BanklessDAO

FINANCIAL IMPLICATIONS

Team salary:

Volky - 160 hours - 160,000 BANK - 50% after mint

Danizord - 160 hours - 160,000 BANK - 50% after mint

hruday - 160 hours - 160,000 BANK

Gecko - AFTER MINT

DavidBankless - AFTER MINT

yacht_tea_Ed - AFTER MINT

TOTAL OF: 320,000 BANK

External expenses:

Designer - 32,236 BANK / 0.75 ETH

Artist - 10,000 BANK

Solidity dev - 7,500 BANK

TOTAL OF: 49,736 BANK

Infrastructure expenses:

Heroku, Vercel, GitHub, MongoDB - 2,000 BANK

Contract deployment - 3,000 BANK

TOTAL OF: 5,000 BANK

SUMMARY OF PROJECT EXPENSES: 374,736 BANK

Based on the volume of other NFT tools, we assume that the average secondary market volume could be 10 ETH a day, that is 1 ETH in royalties a day (this data may vary depending on the market phase we are currently in). At 10% of 1 ETH, the DAO would receive 0.1 ETH a day on average. This means that we will pay the initial grant back in approximately 84 days. After this point, the DAO will continue to benefit from the growth and success of our project without other expenses and the project will be sustainable. As a result, there will be a running independent project and a great revenue stream for the DAO.

SUCCESS METRICS OR KPIs

The initial goal is to sell out all of our lifetime memberships. If we can manage to do that, we will have approximately 150 ETH in our multi-sig. The project should become independent right after the tool is sold out as this amount should cover development and salaries for the team until at least the end of 2022.

NEXT STEPS

Establish multi-sig & start paying our developers & artists.

Develop MVP of the tool, test it out, and start initial marketing.

Start the minting period & become independent after the sellout.

SQUAD BACKGROUND

@DavidBankless#4680 - Junior web3/solidity developer & crypto enthusiast. Has history in crypto since 2018-2019. NFT collector and trader. Been running a Czech crypto page from 2020 until early 2021 and then became a co-founder of the BanklessCzech media node. Has experience in team leading activities. As NFTs are his daily bread, he is looking for ways to facilitate the experience for him and other collectors/traders.

@gecko007#6813 - crypto since 2017, went full degen in this bull run, part of several NFT projects, and see this as a gamechanger with massive adoption possibilities that will bring crypto to the masses. My focus is on the product management and business side of things. In my other daily life, I co-founded several software startups and am currently managing my own software company.

@ yacht_tea_Ed#3789 - Innovator/explorer with a passion for future tech and finance. Crypto Class of 2017. Self-taught trader of fiat, crypto and options. Dove into DeFi early 2021, becoming fluent along the way. Started NFTs mid 2021 and went full Degen. NFTs to me are the perfect combination of art, trading, utility, DeFi and beyond. I’m very active across an ever-growing list of project discords, and have been early on several NFT tools, providing feedback and guiding their development. My focus is on the optimization and innovation of a product. I think this project is a great opportunity to make an impact on the NFT space and streamline the onboarding of the next wave of adopters.

  • Approve
  • Reject
  • I need more information - please discuss below

0 voters

2 Likes

I like the mentality to build and be prepared to keep building as the space moves and has new needs and opportunities !

3 Likes

A few questions here:

  1. Is this a project started within BanklessDAO? Looking through some chat history, this looks like an external project that’s asking for funding from BanklessDAO
  2. Who are Volky, Danizord, and Hruday? Aside from Volky (who only joined three weeks ago), I see minimal involvement from the other two members.
  3. Why are the three devs not on the proposals as authors?

My immediate reaction here is misaligned incentives and large payouts to an external project looking for funding. We barely have enough funding for internal projects.

Voted no for now. Willing to hear otherwise, but I do not think this is a good use of our funds.

3 Likes

Frogmonkees questions are super valid.

A few more questions. Could you guys elaborate a on the timeline of the project, expected milestones? Do i understand correctly if you will mint the lifetime tokens before the tool i up and running? And elaborate on the reasoning behind why the DAO wont get 10% in the initial mint? Why will Hurday get full compensation before mint?

Thx!

1 Like

Hey! I will answer your questions:

  1. yea, the initial idea was from me to build a new NFT-based revenue stream for the DAO, the tool came as a second thing. You can check the chat history in #building-nft-tool and it started in brainstorm (I can find that post if you want).
  2. They are Developers we hired from the dev guild. The initial team are the 3 of us mentioned here and we are active DAO members. Then we pinged to dev guild to find developers and they were the best fit. I can say that I already love working with them.
  3. Not sure if they should be? Since they were not in the funding team and we hired them later?

I am sorry if you feel that way, let me know if my answers helped a bit. I personally feel that with the permanent secondary revenue, we could really help the DAO with its streams. This started as an idea to help the DAO as I love being a member and this is what we came with.

Hey I can answer that!

  1. What milestones do you want to know? Pre-mint or the future ones? We have big plans!
  2. No, the tool will be up and running and then we will start the minting.
  3. It won’t get the percentage from the mint, because we need to be sure that we can run the project from the multisig whole year, we can’t disappoint the buyers/members. Also - it is meant as a revenue stream not as a one time investment. One time investment does not help the DAO in the longer, or do you think otherwise?
  4. The other team members won’t get the money because they chose to - we want to keep the expenses as low as possible for this DAO grant. We are working for free now and devs are building for half the money. Hruday didn’t chose to get the money after mint. It’s his choice.

Was this helpful? Let me know!

I actually found the post that started this project - Discord

2 Likes

Thanks! This recent NFT bear market has been great for brainstorming and building. Our tool is a unique solution to a universal need of all NFT users: maximizing profit upon sale. From our market research a similar tool has not yet been developed.

1 Like

Hey there :wave:
Yeah, I guess some introductions are due…I’m a big bDAO newbie myself

I’m a Backend developer and Technical Product Manager with 5+ years of experience. I’ve been all-in on crypto and web3 for 3 months now, since dropping out of my last job.
I’ve been a Bankless subscriber since 2020, and somehow managed to miss the $BANK airdrop (I guess I can blame the firehose of crypto-twitter and having too many projects to keep track off :sweat_smile: )

Last month I stumbled upon BanklessDAO and decided to make this my main commitment. I was lucky enough to find @DavidBankless’s post on #building-nft-tool while I was looking for my first dev guild assignment - I guess a week after buying my $BANK and joining the dev guild - and was pretty excited to join the team because I love building tools that were never done before (I came into the project with a bunch of my own ideas of stuff to try, as David can bear witness :grimacing: )

I’m putting most of my time into this project rn, but am intent on getting into other dev guild projects, so I’m staying in sync with weekly meetings and focused discussions, and also trying to bring value to some discussions on other parts of the DAO.

5 Likes

Thanks for the honest feedback. I hope I can answer your questions and provide more context to our proposal and team:

  1. This is an internal project, put forth by several DAO members. We all entered the DAO at different times and have been individually looking to add value to the mission. Personally, I’ve popped around the discord since joining in late July, but didn’t really find my place until the NFT Club opened. I met @DavidBankless and @Gecko007 in there. David and I seemed to bump into each other in every other NFT discord, notably those focused on tools. The NFT Club served as our think tank and eventually David propositioned to the group that we make our own tool as a way to contribute to the DAO. We created a subthread “building-nft-tool” and started market research and brainstorming.
  2. We contacted several DAO members to either A) work on the project or B) refer us to other devs who may be interested. We posted on the Dev Guild job board and I attended a dev guild meeting to discuss the project. We had many devs interested, and we interviewed several members. We ultimately selected the members listed on the proposal. Some are more recent DAO members than others, so this is why they do not have extensive chat histories in the discord.
  3. The devs are not listed on this proposal as founders as the initial team was @DavidBankless, @Gecko007 and me. Our initial draft proposal had a paragraph about our process for hiring devs and estimated costs for work. Opportunity waits for no man, so we have been working and building since inception.This proposal has been continuously updated as our project has evolved and now includes accurate numbers for dev compensation.

I can see why you’d have your immediate reaction, but this is not an external project nor a cash grab. Our financial structure is in place to create another revenue stream for the DAO, while also maintaining enough funds in our project multi-sig to support continued growth and innovation. Every time our passes are traded on secondary market, a percentage of sales goes back to the DAO, increasing value for DAO members and BANK holders. This continues even after the initial funding is paid back. As DAO members and BANK holders ourselves, we have a double incentive for this project to succeed.

2 Likes

@DavidBankless @yacht_tea_Ed @volky

Thanks for your prompt replies. Will read again soon.

Thanks for the comment @Nicklas. Our timeline is ASAP. Our devs have been building and we have been continuously planning and executing our next steps. There are a lot of moving pieces, but once we have a viable product we will launch our mint. Regarding compensation, the majority of the team is working with the expectation of future earnings. This reduces the amount requested from the DAO significantly. Our proposal provides the numeric details of this plan. To move this project forward as quickly as possible, some of our contractors will be compensated in full once funding is secured.

When brainstorming the DAO revenue share we wanted to accomplish two things: 1) continued revenue stream for the DAO, 2) a well funded multi-sig to “stand on our two feet”. The ETH from the mint will be used to compensate team members, as well as act as a war chest for ongoing development. The NFT space will continue to grow and evolve and we plan to move with it. Rather than a quick payback to the DAO, we thought it was better to create a revenue stream in perpetuity.

2 Likes

There isn’t enough credibility for me to vote yes. I see a spreadsheet, a google doc, and a bunch of promises. I need tangible validation.

  • How do I know the tool is actually useful - do you have a list of interested users?
  • How do I know you can actually build it - do you have any code written?

Honestly, the way you’ve structured your proposal raises some red flags for me. Even if you are sincere, I couldn’t accept this proposal given the lack of tangible validation.

This is a great tool that will have good product market fit. The ask for the project seems reasonable too.

Just that the amount that is returning back to the Bankless DAO seems little too low at 10%.

Perhaps you can take some reference from DAO Punks.

2 Likes

Sorry I got a lot of questions :laughing:

  1. In the team salary part, what does “after mint” mean? It means for people who will get paid after mint, their salary will come from project multisig, rather than Bdao grants?

  2. It is good to know the idea was originated from several BDao members, but the way you are going to do is not like an internal project, but an external project with some financial connection to BDao. Since BDao is not a grant DAO, it is reasonable that you will give some return if BDao will give financial support at first. But 10% on the secondary market income is not a big number. How about 20% or even higher? To project multi-sig, it means you get 80% rather than 90%, little impact, but for BDao, that means double income and reducing a lot of risks. And why not 10-20% for BDAo from mint income as well, that makes more sense to me. If you need all 150 ETH from minting as whole year team cost, you could consider a) increasing revenue split percentage for BDao on secondary market sale b) make it to 550 and give 50 free NFT to BDao.

  3. Will you need to use BDao brand for promotion. I know you are not using BDao as project brand, but when you are doing bootstrap, a) BDao’s community is going to help more or less b) you might want to tell the market that this project originated from BDao and got grants from BDao, which is also a usage of BDao brand. I don’t think this is a problem, as long as you guys are doing a good thing, that should be supported, but please be aware this is also a huge value-added from BDao and might be critical to your market success. Even more important than the BANK you are asking.

  4. Lack of project execution plan and financial prediction. Why do you think you will get 10ETH volume each day? Who will trade a members NFT each day. You will need a detailed plan(both development pland and Go-To-Market plan) to let people buy in your financial prediction.

Hey!

  1. Having a list of interested users is a little weird, but if you ask in the #nft-club channel, I belive a lot of them will respond to you with a positive answer. However, I don’t think a list of potential users is something we should be doing.
  2. Yes - we actually have code written already since we haven’t wasted any time and started building. I believe we can link you to our github if you DM us and our devs are ok with it.

I am sorry that you feel that way. but I believe we can answer most of the questions with satisfying answers!

Hey Angyts,

based on our calculations, we should be able to pay the initial grant back only from revenues in approximately 84 days. And after that, the DAO will still keep earning 10% of our revenues forever.

I don’t think that’s not enough, but I would like to talk about this if you feel otherwise, the percentage is not set in stone and we can move it if there are good reasons.

Hey chao, no problem I am glad to answer them!

  1. Yes, after mint means that we wanted to “ask for less money” from the DAO and therefore some of our members decided to half or the whole salary after mint from project multisig. Keeping the DAO grant as low as possible.

2&4. So how do you exactly decide if that’s an internal or external project? I would compare it to the fight club - initial funding from DAO, independent governance, taking feedback from the bDAO community, generating revenue for the DAO, etc. The only difference is that our tool is not for bDAO members only - which I think is crucial for it to be sustainable. I really think of this as an internal project which we were making for the DAO. About the 10% of secondary sales - I think we underestimate how much that is. That’s 0.1 ETH a day if the market isn’t stalling (right now due to low volume, it would be almost impossible to generate 10 ETH in revenue every day, but we are talking about average, in NFT bull market you are able to generate even 20+ every day). All the calculations about secondary revenue come from a similar project to ours and their revenues. For example, take FreshDrops tool, they are generating 10ETH volume a day in average, our product is on the paper better than their and we also have the support of Bankless community. However, those are surely valid points and we are still open to changing that number.

  1. I agree that the value BDAO gives us in its community is really big and I think we are giving a lot of that value back to our beloved DAO creating a revenue stream, the better the success - the more money the DAO gets in the revenue split. We don’t intend to use the BDAO brand in any way, we don’t want to promote this as: “This is tool from bdao, buy”. We want to promote it using the features and providing data to the members.

You have a lot of valid points, but I think some of them are quite easily explainable. I hope we can chat about it and come to a point where you feel like the DAO is getting enough from us!

Definitely shouldn’t lose track that this “bear” market is just a step on the road to mass adoption.
For us who’ve been through the craze it may seem like the NFTs are in the past but we must remember we were barely a few hundred thousands people to have touched an NFT. Just seeing the amount of hate the Discord guys are getting on their post announcing integration of wallet connect and metamask shows how gamers and the public in general still have no understanding whatsoever what the tech is going to bring them (the gamers are being played but they could finally become the players). Anyways, it’ll become so many people’s daily life to need to check their NFTs value, performance, momentum, and there’s no way they have the time to do it on their own and accumulate the data on all the different areas NFT will cover.

2 Likes

I understand a lot of the concerns, but I think it’s a clear revenue proposal and we should help develop it to a state we’re good with. External developers are a non-issue for me, see it as onboarding new devs to the DAO.

However, I would like to see more DAO benefits, maybe a WL mint?

Also I think this is a great project to base payments on milestones, this would lover the risk for the DAO and payments would be made on completion of milestones. I think you could also clarify how the mint proceeds will be used since you’re not sharing them with the DAO.

@DavidBankless would you be open to a milestone based approach?

I’m very much in favour of this project if we can base it on milestones!

3 Likes