Integrating Edenhorde NFT into Merit Circle Ecosystem as Staking Booster.
Henlo. My name is Drcomot, and I hold both $MC and Edenhorde NFT. As a supporter of the Merit Circle ecosystem, I have noticed that there is currently almost no connection between Edenhorde NFT and the MC token. This has led me to propose an integration of Edenhorde NFT into the Merit Circle ecosystem, whereby MC token holders who stake their MC tokens and own an Edenhorde NFT will receive additional rewards on top of the existing APY.
Edenhorde is a media franchise from Merit Circle in the form of 8,800 non-fungible tokens (NFTs), driven by collective worldbuilding and intellectual property. It is the first genesis project under Merit Circle, and it acts as the flagship NFT project of Merit Circle and a gateway to the Merit Circle ecosystem.
Photo 1 Source: https://edenhorde.world/
The artwork and character design for Edenhorde has been done by Andy Ristaino, a former Emmy award winner with Adventure Time, well known for his work on The Midnight Gospel and an incredible cartoonist and designer. Edenhorde was launched on February 14th, 2022.
Although many people bought Edenhorde to support Merit Circle ecosystem, as of the time of writing, there are only 2,197 unique Edenhorde holders remaining, which is significantly lower than the 13,013 unique MC stakers.
It’s almost a 1:6 ratio!
*Photo 2 Sample Ratio Illustration. There are also Edenhorde holders who do not own or stake their MC tokens*
This represents a wide gap between MC token stakers and Edenhorde NFT holders at the current moment. Therefore, this proposal aims to make this gap better by incentivizing more MC token stakers to own at least 1 Edenhorde NFT.
The proposal seeks a 1,000,000 $MC token allocation to be distributed proportionately based on their staked $MC token, among $MC token stakers who own at least one (1) Edenhorde NFT for a duration of one (1) year. After the period ends, the continuation can be determined later through another proposal with a community vote.
It’s also important to note that only one Edenhorde NFT is required to receive the additional rewards, and holding more than one NFT will not affect the rewards calculation.
Based on the current price, a 1,000,000 $MC token allocation is equivalent to ~1% of the total value of $MC tokens being staked. This means that holding at least one Edenhorde NFT will provide an additional 1% APY on top of the existing APY as a Staking Booster (assuming all stakers own an Edenhorde). It is a win-win situation for both $MC token and Edenhorde NFT holders.
The rewards will be calculated on a daily basis (as per current MC APY calculation) and will be vested for 1 year.
Photo 3 Source: https://staking.meritcircle.io/
This proposal also requires community feedback on whether additional allocation is necessary to provide small-sized holders, who own and stake less than 10,000 MC token, with extra allocation. Providing additional allocation to these holders can incentivize them to participate more actively in governance and potentially lead to more decentralized DAO. To prevent bots, we propose a condition that requires the wallet to be at least 1 year old.
If the community agrees, this proposal seeks an additional allocation of 100,000 tokens as a layer 2 booster, which will only be distributed to small token holders on top of their existing APY and layer 1 rewards.
Where will this allocation of 1,000,000 tokens come from?
There are 2 options to be considered:
One of the beauties of Merit Circle is that there are many brilliant minds in the DAO. For example, Sad Cat Capital proposed a “buy-back and burn” mechanism in MIP-7, which has significantly improved $MC tokenomics.
To fund this proposal, we suggest using 1,000,000 MC tokens that were supposed to be burned, as generated from MIP-7.
I believe the amount of 1,000,000 token is reasonable, given the history of MC’s monthly token burns. For instance:
Oct 2022 🡪 11.3mil token were burned
Nov 2022 🡪 202mil token were burned
Dec 2022 🡪 8.3mil token were burned
Jan 2023 🡪 7.3mil token were burned
Feb 2023 🡪 7.1mil token were burned
The funding for this proposal could be executed through various methods:
- One-time allocation taken from the upcoming allocated tokens to be burned, provided the allocated token is more than 100%; or
- Withdraw a specific percentage of tokens in phases until the funding goal is reached. For example, only 10% of the allocation could be taken out every month until we reach 1,000,000; or
- Any other appropriate approach agreed upon by the core team/community.
By using the burn token allocation to fund this proposal, we can avoid putting any additional pressure on the Merit Circle ecosystem or its token holders. Additionally, this will help to create a positive feedback loop whereby the integration of Edenhorde NFT into the Merit Circle ecosystem will result in increased demand for $MC tokens, leading to more token staking and a reduction in circulating supply.
Token burning represents a crucial aspect of the tokenomics in Merit Circle. Therefore, taking a portion of the tokens that are meant to be burned could potentially upset some members. As an alternative, we could consider funding this proposal through the existing community incentives budget that is available in the Merit Circle wallet. This approach would ensure that we can support the proposal while still adhering to our tokenomics principles.
As an Edenhorde NFT holder, I have often heard complaints from other holders that the Merit Circle has abandoned Edenhorde and is solely interested in making a quick profit. The number of unique Edenhorde NFT holders has significantly decreased since the initial mint date, which suggests that the community is losing faith in the project. As a community member, I understand the concerns raised and believe that it is important to address them.
Photo 4 The reduction of Unique Holders since Day 1
One of the main reasons for the decrease in Edenhorde NFT holders is the lack of incentives for MC token stakers to own Edenhorde NFT. This proposal seeks to address this issue by incentivizing MC token stakers to own at least one Edenhorde NFT. By doing so, we hope to encourage more MC token stakers to support the Merit Circle ecosystem and, in turn, increase demand for Edenhorde NFT.
Moreover, there has been a significant drop in the floor price of Edenhorde NFT since its initial launch. As an Edenhorde NFT holder, I understand the frustration and concern of seeing the value of my investment decrease so drastically. However, I believe that by implementing this proposal, we can create more demand for Edenhorde NFT and ultimately help to increase their value over time.
Photo 5 Source: https://opensea.io/collection/edenhorde-official/activity
Why should Edenhorde NFT holders be rewarded?
Ultimately, this proposal is designed to reward MC stakers who support the whole Merit Circle ecosystem, rather than providing benefits exclusively to Edenhorde NFT holders. With this approach, the ecosystem becomes more inclusive and valuable.
It will encourage more MC token stakers to participate in the Edenhorde NFT project, which can lead to further growth and development of the ecosystem.
Needed support from the Core Team
As someone who is not technically advanced, especially in web3, support is needed from the core team to materialize this proposal, in terms of development, coding, auditing, etc. If the core team / DAO finds any better way to implement this, please do so. This proposal is designed to create value for both MC token stakers and Edenhorde NFT holders, and the support of the Core Team is crucial to its success.
To summarize the Proposal:
Photo 6 Summary of The Proposal, based on Option 1 on Funding
This proposal requires two key decisions to be made:
- Should additional funding be allocated to incentivize small token holders who own less than 10,000 tokens with extra rewards? This requires an additional 100,000 MC token.
- Where should the funding come from? Option 1 or Option 2?
The integration of Edenhorde NFTs into the Merit Circle ecosystem has several motivations, including value addition, incentivizing token staking, increasing adoption, promoting cross-pollination, and providing benefits to MC token holders who support the Merit Circle ecosystem.
It’s worth noting that if Edenhorde NFT is a success, it will give a good reputation image to Merit Circle as it’s their first genesis project .
The success of Edenhorde NFT will help Merit Circle to establish itself as a credible and innovative DAO that can deliver successful projects. This will help to increase the adoption of Merit Circle ecosystem and create a more loyal and engaged community.
I hope that the core team and the community (both Merit Circle and Edenhorde) will support this proposal and work towards its implementation, bringing more success and growth to the Merit Circle project.
“This is not the end, my friends. It is merely the beginning of a new chapter” – Oru #4359
Special thanks to the Edenhorde and Merit Circle communities for all valuable feedback while finalizing the first Edenhorde proposal. You know who you are