Alpaca NFTs staking service

Community Discussion & Proposal
1

Summary: Redirect some revenue to Alpaca NFT staking.

Abstract: Now Alpaca NFTs have no value and utility, i have 11 of these(mostly for Grazing Range) and there is nothing i can do with it. Btw these NFTs are reward for my loyalty to the Alpaca Finance. I’m sure other people have the same problem and we would be happy to get some % of performance fees for NFTs ownership.

Overview:
First of all:
by “Alpies NFT” i mean limited edition of The Dauntless & The Dreamers collection
and by “Alpaca NFT” i mean all other NFTs related to Alpaca Finance which you can get for participation in Grazing Range and other marketing & partnership events.

So today we already have functionality to stake Alpies NFT, so this shouldn’t be a problem to extend this for staking all other Alpaca NFTs.

Also i suggest to redirect some performance fees like this one:
“2.5% of 5% royalty fees on Alpie NFTs sold in the secondary market go to ALPACA buyback & burn” and maybe some others.

I can’t propose exact numbers of % which can be offered for NFTs staking because only Alpaca team members have information about the actual revenue flow from each Alpaca service, so i believe it will be better if Alpaca team will decide the exact amount of reward for Alpaca NFTs staking, i’m only suggesting the mechanism.

So for example:
each Alpaca NFT will give you some weight and each Alpie NFT will be multiplier of you summary weight.

So if i have 4 Alpaca NFTs(there are also different amount of points for different rarities of it (Green, Silver, Gold tiers)) and 1 Alpie NFT, in case if every Alpie NFT multiply my weight to 10, then i will get 2 points for 2 Green NFT, 4 points for 1 Silver NFT, and 8 points for 1 Gold NFT, or something like this. So it will be (2 + 4 + 8) * 10 = 140 Alpaca points, and my weight is 0,056% among all other people with NFTs, so i will get proportional Alpaca token reward.

Motivation: Alpaca & Alpies NFTs will get more value because of additional utility with real rewards for staking.
People will get more motivated to stake more Alpaca tokens in the Governance vault to get more Grazing Range NFTs.
Alpaca staking functionality is already developed so it can be extended to the local NFT marketplace in future to make people trade and collect NFTs.

2

Agree with the sentiment that Alpies lack some utility (esp as it sounds their role in the game will be reduced)

I would be supportive of doing something in this area. Especially as my hypothesis is - as you allude to - that the number of alpies held by an individual is proportional to the long term commitment to the platform

On the specific proposal, i feel there’s a small flaw in the thinking though. If you need to stake alpies to get a % of the trading fees, that will mean less people will want to trade them which means less fees.

To strengthen your proposal, have u considered alternative or additional utility options such as “if u stake an Alpie you get X% more allocation in AVs (such as a multiplier)? If so, which?
I believe the best solution will need to create value for the ecosystem, not just for Alpies…otherwise we are siloing our propositions

As a consideration, it might be better to split the decision in two:

  1. Decision to revisit the utility of Alpies
  2. If #1 is successful, decision on which mechanism to implement
3

But the game is coming, so if you want to play then you will trade, btw some revenue from the game could be directed to NFT staking, so either you play and earn or you can stake and earn

Sure, in future NFTs could be used to get allocation in private AV, or give you other benefits, right now i just want to suggest the main idea of NFTs staking and then, with the rest community we can expand this discussion

4

Thanks for your proposal. My thoughts are below.

Alpies and $ALPACA holders paid for privileges. Alpaca NFTs were given out for free. Everything comes from somewhere. Putting money in someone’s pocket is taking it out of someone else’s pocket, and we don’t have a plan to take money out of the pockets of our paying investors. So we’re not inclined to take rewards from paying users to give handouts to free NFT holders. The utility for Alpaca NFTs has always been communicated as “maybe nothing” and we’ve so far limited the rewards to exclusive participation rights, not yield-earning rights.

Alpies were also never promised any governance or fee-sharing function in Alpaca.

Of course, the above is my view. If a proposal gets majority support from ALPACA holders then anything can be considered. That’s what governance is for.

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