Flipper.zone project [2nd proposal]

Title: Flipper.zone NFT Tool

Read the initial discussion within #brainstorm: https://discord.com/channels/834499078434979890/834942572349751302/890685609520271440

Read the initial project discussion:
Discord:Bankless DAO/Project Planning/#building-nft-tool

Authors: @DavidBankless#4680, @gecko007#6813, yacht_tea_Ed#3789, volky#0001, Danizord#8892, hruday#8884

Initial Proposal Date: November 9, 2021

Current Proposal Date: November 23, 2021

Our second proposal regarding Flipper

This is our revised proposal put forth to the Bankless DAO regarding a funding request for our NFT project, Flipper.zone. We appreciate all the constructive comments on our initial forum post. We have worked to implement your feedback and create a more straightforward proposal which better highlights our team, the tool, and the finances. For reference, the results of the previous poll are below:

Initial proposal

While we are pleased with the overall approval, it does not satisfy 66% for a snapshot vote. Additionally, it is far less approval than we anticipated when developing this project. We’ve realized that there were aspects of our proposal that were not clear to DAO members. We hope that this second edition better demonstrates Flipper and contains more attractive financials for the DAO. This remains a proposal by DAO members to create a revenue-generating project for the DAO.

Summary

Tool Overview

  • Flipper.zone is a stand-alone web app serving as a multi-feature NFT trading tool
  • Only users holding a Flipper NFT in their wallet are granted access to the app
  • Planned features include:
    • Portfolio View: NFTs displayed with ETH value based on Flipper’s signature rarity-price formula
    • Mass Options:
      • Mass Bid: place bids on multiple items with minimal effort
      • Mass List: support for both auction styles with user-defined timeframes
    • Quick-buying (“sniping”) via marketplace API
    • Flipper’s signature feature is an optimal sale price calculator
      • Calculated on the backend by analysis of all previous sales relative to rarity rank
      • Generates graphical view of any NFT project (see below)
      • Benefits to users:
        • Easy interpretation of marketplace action of any project
        • Maximizes profit upon sale
        • Maximizes likelihood of a sale
    • Flipper’s signature graphical view of any NFT project’s sale history
      • Includes all listings and sales
      • Updates occur in real-time
      • Graph is populated based on a rarity-price formula
      • Continuously updating trend line based on evolving market sentiment
      • Allows easy identification of underpriced items (“steals”) by users
      • Ability to select, drag and drop to buy or sell NFTs quickly
    • Flipper will aggregate every larger NFT marketplace to provide users with the best deals
      • OpenSea
      • Rarible
      • CoinbaseNFT
      • ShoyuNFT
    • A sustainable financing model to provide users with new killer features

Funding & Financials Overview

  • Flipper team is requesting start-up funding support from Bankless DAO
    • Total Request: 374, 736 BANK
  • Bankless DAO will receive revenue share from Flipper
    • 5 % of all mint proceeds (7.5 ETH - will be paid back to the DAO in ETH)
    • 10% of all royalties from secondary sales (variable)
  • Use of funds
    • Frontend and backend developer salaries
    • Contractors: designer, artist, solidity dev
    • Infrastructure expenses
    • Several team members taking no pay or half pay until after mint
      • Reduces funding request amount
      • Encourages commitment to the project’s success
      • Their salaries will be paid in a full amount from project multisig after the mint (from project revenue)

Benefits to the DAO

  • Expansion of presence into NFT markets
  • Steady revenue stream which will increase with increasing demand for NFTs
  • Early whitelist = lower-priced mints for DAO members

BACKGROUND

What is Flipper?

Flipper.zone is a stand-alone web app focused on clear, actionable insights into NFTs. As an NFT tool, it will provide value to collectors, degens, and flippers by maximizing their gains. Flipper will help users easily identify profitable opportunities and streamline the execution of those opportunities. Our signature feature is an optimal sale price calculator, which will generate an ideal sale price for the user based on rarity. This number is calculated on the backend by analysis of all previous sales in relation to rarity rank.

While there are other tools on the market, these focus on optimizing the buying of NFTs. They do not address the selling side of NFT trading. They specialize in early rarity ranks, early reveals, and quick-purchasing (sniping) of NFTs. Each tool has its own niche, and we have found ours: sale optimization with profit maximization.

Who are we?

The founding team is made up of Bankless DAO members who bonded over their shared interest in NFTs while hanging out in the NFT Club on Discord. Even external contributors are Bankless DAO members. Only one of them isn’t - we couldn’t find matching solidity dev. We are not only NFT connoisseurs, but also connoisseurs of NFT tools. As Bankless DAO members, we are looking for opportunities to provide value to our fellow DAO members as well as provide a revenue stream for the DAO. We believe that a grant for Flipper would be an opportunity for us to do both.

Value for DAO Members

  • Early access to our discord and whitelist
  • Our mint will be on a bonding curve, so earlier mints mean more favorable prices

Value for the DAO

  • DAO to receive a percentage of mint and secondary royalties

But with all these other tools available, how will Flipper be competitive?

Features

We plan to have all the classic features of NFT tools, which include: mass offer, mass list, quick-sniping, and early rarity ranks. In addition to these features, we will have our signature “optimal sell-price calculator,” which functions as an appraisal tool for users (more detailed description below). Combining this feature, with the classical features, is what will set Flipper apart from the rest.

Price

Many traders want the features of Freshdrops (0.75 ETH) or Ryzen (1 ETH + 0.08ETH monthly), but they are hesitant to pay the premium on secondary. Our initial mints will go for 0.1 ETH, which is a great entry price for traders who do not currently have a tool. With clear price appreciation of these tools, buying the passes becomes a form of investment, in addition to the gains from membership.

Supply

It may seem like there is an abundance of tools, but the supply is actually quite limited. Freshdrops only has 500 subscription passes, with Ryzen only having 50 lifetime and 200 subscription passes. If we look at a 10k PFP collection and see 4000 unique holders, one can assume there are several thousand who do not yet have an NFT trading tool. The next wave of adopters are entering the space, they are bringing ETH, and they are looking to buy our jpegs. With Coinbase platform launching soon, there will be an even larger demand for these tools.

Why should Bankless DAO provide funding support for Flipper.zone?

We have seen how absolutely wild the NFT space can be and just how much liquidity and attention it can consume. While the current NFT has been bearish the last two months, we have seen explosive days reminiscent of the Summer Bull. We believe that the future growth of the NFT market is going to exceed even our own expectations. As traders old and new seek to gain an edge, the ETH value of tools such as Flipper will continue to go up. Our project is one-of-a-kind and our passion is real. We have been brainstorming and developing Flipper for over a month now. We are close to having an MVP. Support from Bankless DAO on this project would support fellow BanklessDAO members, generate revenue for the DAO, and position the DAO as a major player in the NFT space.

MISSION & VALUES ALIGNMENT

Our mission is to help users (including us) be more confident in valuing and trading NFTs & create an NFT-market based revenue stream for Bankless DAO.

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.

There will be 500 all-access subscription memberships starting at a price of 0.1 ETH with a bonding curve up to 0.5 ETH. These passes will be for the remainder of 2021 through 2022. This would bring approximately 150 ETH into our multi-sig. Looking forward, we plan to release separate NFTs for every single one of our features, as someone might only want 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. Bankless DAO will receive 5% of all mint sales. All of the secondary sales will be split based on the following percentages (this will be hard-written into the smart contract):

  • 90% - Project Multisig
  • 10% - BanklessDAO

Financials

The below hours are estimates based on work completed and work anticipated on this project. Several team members have elected to forego any compensation or to only receive half compensation until after the mint. DavidBankless, Gecko007 and yacht_tea_Ed are working for free and volky + danizord are working for half the salary just because we believe in this project and we want to reduce the budget ask as much as we can with this stake in this project.

It is very important to note that the after-mint salaries will come from our own multi-sig, so the revenue for the DAO is intact. There is very little risk for the DAO, with the potential for a huge upside.

Our team has already been working on this project for over a month. To check our progress and see what has been completed, please see the “Success metrics and already done” sections below.

All salaries that will be paid from the grant will be paid in BANK.

Team Compensation:

Volky - 160 hours - 80,000 BANK - only 50% of the salary in order to make the budget smaller

Danizord - 160 hours - 80,000 BANK - only 50% of the salary in order to make the budget smaller

hruday - 160 hours - 160,000 BANK

Gecko - no salary, in order to make the budget smaller

DavidBankless - no salary, in order to make the budget smaller

yacht_tea_Ed - no salary, in order to make the budget smaller

TOTAL OF: 320,000 BANK

External expenses:

Designer - 32,236 BANK

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

Initial Funding Request

We are requesting 374,736 BANK from the Bankless DAO to support our project during our development phase prior to mint. These costs are outlined above and include developers’ compensation and infrastructure expenses. This initial funding support will finance us until our passes sell out.

Bankless DAO: Projected Returns

Revenue Share

5% of ETH collected from the minting of lifetime passes (7.5 ETH)

10% of ETH collected from royalties on secondary sales (variable, see secondary sales section below)

Initial Mint

A full sellout at our bonding curve yields 150 ETH. At 5% this puts the BanklessDAO revenue from a sold-out mint at 7.5 ETH. This is our best-case scenario, however, we must consider the variable NFT market climate. We have considered that users may see any mint price above 0.2 ETH as cost-prohibitive, especially if they aren’t currently trading NFTs. Our worst-case projection is that the 0.1-0.2 ETH mints go quickly, but there is minting resistance above 0.2 ETH. In this worst-case scenario, if we minted 100 at 0.1 ETH and 100 at 0.2 ETH, it would generate 30 ETH. At 5% this puts the immediate BanklessDAO revenue from a slow mint at 1.5 ETH. We believe that as our product will sell itself and the number minted will grow in tune with the overall NFT market. During a high-volume NFT trading frenzy, as we have seen in Mid-November, we would expect this to mint out within 24 hrs.

Secondary Sales

These are harder to predict, as the royalties generated are directly related to the current market valuation of the passes. The valuation of our passes, or the NFTs of any other project, are directly related to the market as a whole. To obtain an estimate is challenging, but we have reviewed the volume and trading prices for two reference projects: Freshdrops and Ryzen. During the NFT mania over the summer, Freshdrops volume peaked at 121 ETH, with the price per pass later hitting 2 ETH. They sold a total of 500 passes, but these are only through the year 2022. They have found some stability around 0.6 ETH. Ryzen volume was not as high, peaking at 21 ETH. For reference, they only sold 50 lifetime passes. Ryzen lifetime passes peaked at 7 ETH and is now at a 4.25 ETH floor. These peak volumes are unlikely during this NFT bear market, but are attainable once liquidity returns to NFTs.

We have provided some estimates for secondary sales and revenue below. We have started with a bearish scenario of two passes sold per day (compared to current Freshdrops sales). To adjust for rising interest in the NFT market, we have added two sales per day to each scenario. We have included the estimated total royalties, as well as the Bankless DAO revenue share from these royalties.

Secondary Sales Estimates Per Day

Bearish: Pass = 0.2 ETH, 2 sales, 0.4 ETH daily volume, 0.04 ETH royalties, 0.004 ETH to BDAO

Conservative: Pass = 0.5 ETH, 4 sales, 2 ETH daily volume, 0.2 ETH royalties, 0.02 ETH to BDAO

Reasonable: Pass = 2 ETH, 6 sales, 12 ETH daily volume, 1.2 ETH royalties, 0.12 ETH to BDAO

Bullish: Pass = 3 ETH, 8 sales, 24 ETH daily volume, 2.4 ETH royalties, 0.24 ETH to BDAO

NFTs are so new that we do not have several historical bull/bear periods to look back on for more accurate estimates. Our only frames of reference are the summer Bull, and the current Bear markets. From our team experience in the space, we believe that the NFT market will move briskly from a Bearish to a Bullish one with the next few months. While the Bearish scenario’s initial royalty revenue share for Bankless DAO is small, it is also a temporary phenomenon. Last week surprised us with a very bullish mood in the NFT market, and it could indicate that we are going higher.

Summary of Funding Request and Returns for Bankless DAO

Request: 374,736 BANK

Return on Mint:

Conservative (partial mint): 1.5 ETH

Projected (complete mint): 7.5 ETH

Return on Royalties:

Conservative: 0.02 ETH/day on average

Reasonable: 0.12 ETH/day on average

After the mint, 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. We will be always open to any feedback from the DAO, as we consider ourselves an internal project ran by DAO members.

SUCCESS METRICS AND ALREADY DONE

We saw a lot of concerns from the previous post about the lack of tangible results, high risk for the DAO, and the expectation of a timeline and milestones. To put you at ease, here’s an overview of the work done up until now and expectations for the following weeks:

Scope of the MVP:

We’re set on the scope of the MVP: It will be an NFT sniping tool with the unique proposition of estimating the pricing of tokens based on rarity rank and past sales during a high volume period, such as post-reveal. It will help traders take action on insights quickly, to sweep underpriced NFTs, and to sell their own at an appropriate value while there’s enough volume and liquidity on the collection.

This is the concept mockup (Better UI over below, this was done by our dev and not a designer):

https://aws1.discourse-cdn.com/standard14/uploads/bankless/optimized/1X/f81892d5e3e0a754d276c6287edea8187379576a_2_583x500.jpeg

Price estimation: The idea for the price estimation (purple line) is to do a regression based on the pricing of OpenSea sales of the collection and on a rarity score estimation of each token (we’ll be using the same methodology from rarity.tools, and will be able to estimate it before the official collection rarity reveal). This will allow traders to get a quick estimate of how much their tokens are worth, helping price them accordingly, and also to get an overview of existing listings and how much underpriced or overpriced they are.

Bulk orders: All the existing tools for NFT trading rely on interfaces that are not optimized to do a bunch of trades fast. Many provide a browser extension that layers some extra functionality on top of OpenSea’s website, which is optimized to buy a single NFT at a time. Others don’t even have any feature to facilitate orders, just taking the user directly to OS.

We’ll have a bulk orders feature to streamline the buying, listing, and offering of NFTs without having to leave our web app. The idea is to let the user select several orders they want to make using our price x rarity chart. Then they can execute all those orders at once, signing them all in a row.

  • Buying will be easy as the user can find good deals by looking for NFTs that are underpriced for their estimated rarity score, so they can pick the ones they want (peeking over them by hovering, if they are interested in the aesthetics) and select several to buy in bulk.
  • Listing will also be optimal because the user can see the estimated price of each of their NFTs and quickly drag it to list for sale at an appropriate price, considering past sales and existing listings for NFTs of close rarity.
  • Finally, there will be the option to make bulk offers to try and grab NFTs at a lower price than the estimated one (like: offer 20% under predicted price for the top 5% rarer ones) which can be really effective because the offer will probably be over the floor price, and people without tooling for rarity and pricing estimation will see it as a good deal.

Current development status:
We’ve made a bunch of Proof of Concepts for the many components of this solution and are now integrating all of them into a working prototype so we can figure out what works and what doesn’t (like exploring collections of different sizes and seeing how that fits on the chart, figuring out the regression methodology that gives the best fit with the data, and so on) and iterate on the design.

Stuff we have already crossed off the list:

  • OS listing and sales scraping
  • price prediction with regression techniques
  • metadata scraping
  • rarity estimation
  • performant charting lib

Here’s volky’s current playground:

Also, we already have a designer working on making something beautiful out of volky’s scribbles:

https://aws1.discourse-cdn.com/standard14/uploads/bankless/optimized/1X/9b40a85116c67c569c235687a0eeb56719a5494a_2_690x390.jpeg

https://aws1.discourse-cdn.com/standard14/uploads/bankless/optimized/1X/48a442a9fb555bf36b487aea63a49802850030bc_2_690x405.png

Yeah, our mascot is a dolphin

Untitled (1)

As seen above, Flipper.tool is already well underway. The release is planned for early to mid December. We have crossed the point of having most of the risks minimized. We know we can deliver this tool.

NEXT STEPS

Establish multi-sig & start paying our developers & artists

Open the Discord to everybody with early access for the DAO

Open whitelist mint for the DAO

Complete development of an 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 with NFTs mid 2021 and went full Degen. 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. NFTs to me are the perfect combination of art, trading, utility, DeFi and beyond. 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.

@volky :black_flag:#0001 - A product manager and backend developer who loves diving deep into complex problems to design and build outstanding solutions. I thrive on facilitating cross-functional collaboration to get to the best possible product design and technical solution. Also, a libertarian who’s all-in on Web3 as a means to ditch the gatekeepers and build a better society.

@hruday#8884 - A senior software engineer with 5+ years of experience in frontend development working with various javascript frameworks react, angular and Vue. Worked in both product and service based companies. Has been part of Flipkart (India’s biggest ecommerce) game zone core team and played key role in all the games developed till June 2020. Moved into crypto space and worked for various products as a freelance developer and has been with the #1 DeFi platform on Avax chain.

@Danizord#8892 - Senior software engineer focused on web and cybersecurity. Worked on various core web infrastructure areas such as network providers, certificate authorities and e-commerce platforms. Web3 enthusiast and evangelist. I believe in cryptography and decentralized networks as tools to build a free and borderless society.

POLL

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

0 voters

2 Likes

Just my thoughts. I want to vote yes. It would seem reasonable that the first $$$ recouped would go to Banklessdao until the initial investment is covered. Then remaining profit would go to this project until it hits the 90/10 ratio. After that 90/10 split goin forward.

Second, can NFT connoisseurs get whitelist and 0.1e entry and immediate discord access?

3 Likes

Thanks for improving the proposal, looks like there is stronger alignment here. Will support!

4 Likes

We’ll need some funds right away for further development, scaling infrastructure costs, and growing the project, so we need to have a cut for the project’s multisig right away. The 5% of mint proceeds that the DAO is due will account for ~275k BANK on the current market rate, and that’s more than 70% of the grant value already, paid at the earliest possible: mint time.

That being said, I guess the grant is pretty sane as is, without overcomplicating things for either the DAO at large or the project.

ofc (:

As part of the DAO, NFT connoisseurs are included in the whitelist, with no discernment from other DAO members though. So we can’t guarantee the 0.1E mint…will only depend on how fast you are to mint the first 100 passes that will go for that price.

3 Likes

Impressive proposal! Good work yall. Also, love the dolphin mascot. LFG = Let’s Flippin GO!

6 Likes

We really appreciate it, thank you!

I’m voting ‘yes’, and hope to get involved in dev work after the new year.
2 things:

  • WL opp for DAO could substantially exhaust spots – does this matter?
  • You should include IMX platform support from day 1 (tokentrove is their opensea, albeit a very limited version of it as its brand new) as IMX will quickly become a leading NFT marketplace (& its native L2 Eth).

Fantastic idea regardless of competition. The NFT market is going to bigger than we can even imagine, and establishing a presence now, regardless of the ebbs/flows of the market in the short term, will almost certainly be a cash cow for the DAO long term, as well as open doors to other profitable relationships/opportunities.

2 Likes

Good job Flipper team. LFG

4 Likes

Excellent work on shoring up your all’s proposal and including thorough data and previews of the project. I think it’s a wonderful idea with great potential.

1 Like

This sounds pretty cool. I find the optimal price calculator interesting! Can’t wait to see what you guys bring together. :slight_smile:

I like the project. I will support it.