Special NFTs for HydraDX LBP OGs

1yr ago

28 Comments

Content
AI Summary

I have spent a lot of time studying governance attacks. Among these are an attack on Balancer's governance (the war with the Humpy whale), spam attacks on Kusama's parachain (including Basilisk), a successful attack on Mangata's governance, and many others.

In order to secure Hydra in the future, I suggest we start taking steps now towards strengthening governance protection. Ofc, we are not yet large enough to afford the creation of another protection protocol – a liquidity concentration protocol similar to Aura for Balancer. A Hydra’s satellite protocol that would concentrate HDX for those who do not wish to participate in Hydra's management but still want to earn.

(my Hydrafrens are getting into a battle with a whale attacking a governance-ship near Omnipool)

I suggest starting small and gradually. My initiative aims to achieve multiple goals simultaneously.

The reason for the initiative and its essence:
-Community identification – the Hydraheads.
Tokens are not sustainable for creating a community. NFTs serve as a much better adhesive for this purpose.

Who is included in the initiative:
-Accounts that have transferred xHDX tokens from ETH >to> HydraDX

The total amount of NFTs
-is strictly limited (~5500)

NFT utility:
-Initially, the primary utility of these NFTs will be to identify and distinguish early adopters from the rest members of community, which, in my opinion, is extremely important.
In the future, numerous features can be added to these NFTs. It can be an increased APR for liquidity mining, the right to veto in governance voting or an increased voting coefficient, priority rights for anything, etc. These are not set in stone and a topic for another discussion.

Who will create these NFTs?
I propose announcing a competition for visualizing these NFTs. Allocate $1k HDX equivalent from the treasury to reward three winners based on their result:
1 - $500
2 - $300
3 - $200

The contest can be held on Twitter and last for seven days. The Council (or any Twitter anons) will determine the winner, as well as the 2nd and the 3rd place through voting.

I could elaborate on what these NFTs could become, but the fact remains that they are necessary, and it's best to create them early on. In the future, these NFTs could be a powerful tool, unlocking vast potential and utility.
For instance, I’d like to mention the tweets of one of the HydraDX Councilooooors, Leemo.
These are dedicated to NFTs in ChaosDAO and how they effectively rally the community, building a management, delegation, and interaction hierarchy.

https://twitter.com/LeemoXD/status/1606276562453528576?s=20

https://twitter.com/LeemoXD/status/1652403546204131329?s=20

Who benefits from this initiative?
TL;DR: everyone

The team (Galactic Council) benefits from this initiative as they get a stronger community without incurring any significant costs. First of all, NFTs act as the community glue, and GC gets a mechanism for identifying the right people for various purposes and further actions.
Additionally, setting a 5% royalty on the secondary sale of NFTs allows the team to organize a separate fund from these royalties. These funds will be used to buy HDX to support HDX staking or to strengthen the LRNA...(whisper: rewards for posting memes! Lol)
This will be decided by voting. There will always be a use for this fund. Who knows to what extent royalties may increase in the future!
Those Hydraheads who participated in LBP, but were disappointed at some point and would like to leave the project or those who critically need to reduce the loss (in the equivalent of USD) received on LBP can sell their NFTs.
LBP participants who keep these NFTs – the benefits for them are obvious. They will not spend anything additionally, but will increase the value of their presence and participation in the HydraDX project.
Those who did not participate in LBP will be able to buy HDX and OG-status with a strong desire, which I think is cool, because a person is not to blame for missing the HydraDX at the very first moment. And if in the future they want to become a Hydrahead, this opportunity cannot be taken away from them.

Questions for an open discussion:

I propose to create them on the EVM network using the ERC RMRK standards. I am aware of the special connection of the HydraDX/Basilisk team with the Kodadot team, but to be honest, having studied Kodadot and what they offer quite deeply at the moment, I see no reasons to create these (so valuable) NFTs on the Kusama/Basilisk network. *Open for a discussion.
To consider implementing a gradation level of NFTs, with the level dependent on the number of $HDX transferred over the ETH>HydraDX bridge.

I propose discussing and voting on the creation of OGs NFT. However, before you consider this proposal, I would like to ask you to go back in time and re-read "Road to Hydration p.1" again.
https://hydradx.substack.com/p/road-to-hydration-part-1

(come for the tendies, stay for the tribe)

Drink more water and don't get liquidated until you get your OG NFT. Thanks for the attention.

Edited

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Comments

7Nkk...CY9F

Great idea, I like it

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7JHu...KSbL

Very cool idea!!! The team should have thought about this for a long time.

7K7H...kY9T

This is entirely fair. The team should support this idea.

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7Jh4...bbXj

I hope the devs will pay attention to such a great idea

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7JnQ...4AQX

Nice idea

7NzN...tBec

hey @Gret...ydra I like the initiative but there is a problem related to the identification of the LBP participants

there is no possible way to link the eth addresses with the HDX addresses

On the other hand, I think it is possible to know which addresses came from the tesnet to the parachain, through the genesis block, but not sure, need research more jajaj

Surely this has been talked about internally in the GC team, as a community initiative I wouldn't be against at least having an NFT based on early community members.

and as more functions come out, to see how to make the NFT useful, it would be good to add utility to it in separate discussions

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7LET...tfMp

the community supports the project!
the project is supported by the community!
this is the way to success

7NzN...tBec

And something more specific about future utilities, if they can be bought, what happens if a user has more than one? the benefits accumulate ? (in the same wallet, because a user can simply make different accounts and buy from there)

7JWc...fmB1

Nice, I support the idea overall, I have just two remarks:

There is an easy way how to determine LBP holders: https://hydradx.subscan.io/event?address=&module=claims&event=claim&startDate=&endDate=&startBlock=&endBlock=&timeType=date&version=138
The "special" connection between us and Kodadot is that their UI runs on top of Basilisk where you have a proper parachain NFT marketplace with royalties&offers, so I see no reason to use RMRK for it.

7MB6...v7Vt

Thanks for the effort my friend put in. This might be a good idea, but it seems to be of limited use. xhdx is already in the form of NNFT at this time, and it seems that the role of developing a new NFT is not very obvious.
I am neutral on this proposal. I just hope the price keeps pump.

7MwR...AfPF

Fully supportive. Two-plus years with the project already.

7JH3...irRC

Great idea, I agree with the author.

7M8B...JKAu

Absolutely agree!
An idea is good, I support it, I didn’t participate in LBP, but I might buy this NFT
(c) Zhdnun decom888

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7LQo...B9Qp

I support this idea!

7Jxi...5SRc

Great work! It should be realised!

7M5o...Mgq1

nice! Good idea!

7MEL...FyQ1

Cool concept, I'll definitely upvote :like:

7L1j...F6TM

Hello Greta,

I must say that i am not convinced with the idea of creating nfts with special benefits for "OGs".

First of all you may be an og and an active contributor but that is not the case for everyone. Just because someone was there 2 years ago that shouldn't give you a special benefit. In fact your LBP contribution got 3x and you were able to stake them for an additional 70%. The hydra team even decided to cut down the total tokens by 35% which basically boosted your tokens scarcity by another 50%. As you can clearly see "OGs" have been taken care of. Only 4x needed from here to be breakeven although we are still in the bear. For kusama it's basically 20x from here.

From the technical side i really don't see at all why these nfts should save the protocol from a governance attack. I mean you have the committee, the council and then the community to protect the governance.

Furthermore I wanna add that it's never a good look when the first people who reply to these posts are holding minuscule amounts of HDX as this seems coordinated and not organic. Very strong fresh credit vibes for me personally.

What i personally could agree to tho is a nft collection like talisman has for active contributions in the past and in the future. You be an active contributor to the protocol and this will get honored. Not some "we were there 2 years ago" batch.

7Nwy...Z7mx

I don't want to say yes or no for this idea, but from technical side, if we do it anywhere else than natively on HydraDX or Basilisk (both have NFTs) then it will be very complex and incur significant development cost and time bordering insane ( in terms of cost and delays for something else ) for such feature.

Instead, If we go with this, I would propose to plug it in Staking natively as we just finished the spec.

Staking will give you bonus points for voting in governance and later, for doing various actions. This + time points for being long term staker moves you towards max yield (collected from HDX pool fees in v1). What we could do is 2 things.

Holding Hydra / Snek OG NFT boost these points by some %
Just boost OG address by some % whenever they are staking

This would be easy enough to implement and doable in a short time maybe even for V1 or shortly after.

P.S. I don't expect these NFTs to have any significant volume of trades to even consider the fees to contribute to something significant but I agree that Hydra/Snek NFTs already support resale so it's a real no-go to even consider other EVM chain.

P.P.S. Staking is intended to protect governance with it's bonus points for voting and taking action in it.

Edited

7Lji...LBMN

I'll add a few thoughts to the discussion:

NFTs for OGs has been talked about for a long time, so certainly not against it in principal
I feel it would be of more value to include more criteria to distribution of these NFTs though, in order to make it more of an earned reward/ more scarce in the first place - some examples of qualifying criteria could be:
- OG balance of HDX on parachain genesis
- Maintained balance of HDX on snapshot date (rules out those that have left)
- X number of on-chain tx/ governance participation (including Council) since parachain genesis (identifies those who actually take part in adding value to HydraDX)
  - Community regulars, possibly nominated by Community Managers (again, to identify those who regularly contribute)
The NFTs would absolutely have to be native to HydraDX to ensure they could actually be used for on-chain benefits, ruling out RMRK/ EVM - as stated above by (based on knowledge of our staking spec) presumably Panik
With regards to the prizes for producing the artwork/ NFTs, I would propose to pump those rookie numbers up so that we can attract some serious artistic talent - given the time that a decent piece would likely take to produce

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