I have been trying to wrap my brain around a NFT distribution model that is fairer to everyone. A number of times I have been farming only to find all the NFTs just disappear before I could get to the amount required.
I think part of this is the fact that people can just farm with multiple wallets and basically the whales end up with all of the NFTs available.
The other issue I think is a pure economic one in that there simply isn’t enough NFT SNAFU value.
This calculation is a total off the cuff one.
Lets say there are like 100K SNAFU to mine for NFTs distributed across a wide variety of accounts.
This means that at 1:1 mining 100K worth of points will be mined per day for the entire group of SNAFU no matter how this is distributed across wallets.
Now one can make it so that each wallet is limited to say 2K SNAFU. so this will just mean 50+ wallets will participate and will earn 2K/day mining rewards (many will be less ofc).
Now look at the distribution of NFTs purchasable. If this happens to be mostly linear as.
This means that within 1/2 of a day all wallets with 2K will be able to get some of the 1K NFTs, 1 day for the 2K, 2.5days for the 5k,
The problem with this is a person who wants the 20K NFT is always going to lose out to the 2K whales unless they have 2K SNAFU.
I don’t have a really good way to fix this except to basically force everyone to have the same amount of SNAFU (no minimum no maximum) but then we still have the time element.
To my mind what should be done here is to open a farm and let people mine for same amount of time with a min/max of SNAFU and occasionally offer up for ‘auction’ various NFTs.
Do the auction say every couple days and allow people to mine constantly in the mining contracts to build points (this is good particularly for LPs but also SNAFU holders) and then put up the NFTs for auction for like 3 days and let people bid with their earned mining points on the NFTs.
Point here is that people can mine with a small amount of SNAFU for a long time and still get a shot at an auction even though they will be somewhat at a deficit as to what they can bid against the whales.
IF you add BrightID and don’t have a minimum or maximum LP/SNAFU then what you do is limit the amount of points one can spend in any particular auction to some reasonable maximum. IF multiple people bid the maximum allowed on any given NFT then basically randomly determine the winner.
So here is my proposal.
- Use BrightID to limit sybils
- If you have Bright ID you are not limited in how much you can deposit to earn.
- Every auction bidder registers for the next auction by converting points to auction points up to a specified maximum for the auction run of interest.
- If bidders bid their maximum amount allowed to spend then use a random process to select NFT auction winners to award the NFT. (This must be done and peoples bids released before the next NFT in the auction comes up for auction so losers are not excluded from the next NFTs). I might suggest using a gnosis auction process for each NFT and put them up one at a time over time. Publish a list of auctions and times.
- The maximum value of NFTs in a auction sequence should always be > 5-10x the total any one bidder can spend.
- Unspent auction points after an auction are return to their earned points wallet accounts.
- Any NFTs that do not receive the minimum bid and withheld are added to the next auction sequence in the beginning.
So lets say there are 10 NFTs coming up in an auction series that cost from 1-20K points auction total is going to be 1M points and we can bid/buy with up to 100K points maximum. This means a single bidder can only win 5 20K NFTs (only if some other bidder doesn’t pay more than 20). Once a person has exhausted their 100K points bidding they no longer can bid in that NFT auction series.
The whole point is to make it so everyone can earn as many points as they want in these contracts. (no min or max limits). To try to limit sybils (via BrightID). And then to post an auction sequence of NFTs with a value at least 5-10x the individual buy limit. The individual buy limit should always be something like 2-5x the maximum value of a NFT - this allows for multiple people who really want a particular NFT to bid the maximum and still have a chance of winning the NFT. Once a person exhausts their auction points bidding limit they then no longer can bid and other people get a chance at the remaining NFTs.
The individual order of NFTs in the auction will have an affect so it would be nice to stagger values out - starting with the lowest valued ones 100-1K-10K and cycle this a few times throughout the period of the auction.
I suggest an auction period of like a week with three price cycles.
Anyway that is about all I have on this. Sorry this isn’t more formally written up as a proposal. I have a lot on my plate today but I think the NFT auction process with reasonable limits and using brightID to be the best solution here that allows everyone a fair process to obtain these NFTs at reasonable prices…
Auctions are fun, and allow everyone to simply use their brightID accoutn will mean a real reduction in wallets bidding and a better idea of what the SNAFU distribution looks like. Having a maximum spend for each brightID auction below the total offered will force everyone bidding to figure out which pieces they really want and still give people without much SNAFU and points earns - some chance to win the NFT they want. Staggering the NFTs via points price in the auction is a nice way to give people multiple chances at the NFT they want unless it is a print of 1…