Governance NFTs

The desire to take a lot of profit from gains is strong without hype/buzz about what comes next.

HBB could be a valuable long term investment that creates governors for life, stabilizing the price and value.

Volatility restricts small cap tokens from being used as lending or borrowing assets, and standard governance tokens don’t have a great track record of keeping investors engaged.

Marinade introduced NFTs where the governance token (MNDE) is locked for 30 days. Since the introduction of the idea the coin began to increase in value, and with the mint now live it’s safe to say locked MNDE has been a success.

Here’s my takeaway from this experiment:

  1. It’s a lot easier to vote with an NFT (that has the tokens embedded) instead of making sure there’s enough tokens to vote for each issue.
  2. The NFTs are about membership rather than rarity, which creates an engaging and friendly community.
  3. The community is inspiring more NFTs to be minted, and in turn locking the token for a minimum of 30 days.
  4. Unlike many discord groups where people hold governance tokens and could participate (but usually don’t), marinade NFT holders are aware that they have the power to shape the DAO and have submitted a lot of ideas since the launch.
  5. Fixed amounts of HBB or USDH inside an NFT could be locked away for strategies and investments.
  6. NFTs could lock for variable amounts and be treated as bonds
  7. A stack of coins just doesn’t look, or feel as good as your very own HBB NFT

So what comes next?

If we want to go a similar route to marinade, they are a solid team that may be willing to share resources to help with a smooth launch.

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Good idea. Tell me when and where to vote for this.

We make rarity based on token size so. Here are some examples.

10 → Common
100 → Rare
1,000 → Unique
10,000 → Legendary
100,000 → Whale

Make seperate discords for each NFT holder.

Not sure how to reward them, this is a larger thought process. This is an interesting alternative to the ve model. I think NFTs should be unwrapable at any time.

We would have to figure out how to reward NFT holders, because they now cannot participate in defi such as LP on raydium/orca, lending and borrowing on solend, and other features, which is major opportunity cost in consuming HBB.

The thing with MNDE is they don’t have staking, so there’s really no opportunity cost to give up your tokens for 30+ days. The difference with HBB is you really want your tokens in the HBB Vault or Orca/Raydium LP’s, etc. MNDE was kind of a useless token before they introduced the NFT’s, HBB is in a much different place.

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Well, since there is staking available, the NFT model can be a type of lock staking. Lock stake x amount of HBB for x amount of time and receive x NFT with x voting power.

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for more use cases of HBB is it possible to connect it to the USDH somehow like:
as an APY’s multiplier for USDH pools based on some feedbacked based Coefficients that can handle the health of USDH pools:
(number of stacked HBB) / K;
but using locked based HBB stacking options in the NFTs with a well-designed algorithm for the k

Ok so I have somewhat mixed feelings about this.

Although I love the idea of DeFi projects going towards NFTs, we have yet to see something successful. Yes, the price of MNDE went up after the mint, but now is 25% lower again. It’s tough to know the effect of something which is so multidimensional in nature as something like how price moves.

Where does the demand come from? From people locking their stake? Is locking tokens a sustainable way to increase the value of a token? Are people who locked their Curve tokens for 4 years really still happy with their decision?

I understand the need to lock up tokens and to give people yield on that - I’m just not sure if it’s the right way to go. It’s not really the most sustainable model imho and is basically a bribe for people not to sell. Even though it’s a common thing in the markets, I for my part, don’t think it’s the way to go.

What I definitely do agree upon though, is that NFTs give you another feeling of ‘belonging’ than fungible tokens. It’s easier to attribute your personality to a JPEG than to a bag full of coins. I’ve been deep enough into NFTs to know that.

I think it makes sense to explore their approach in more detail, to find out what worked well for them and what did not, find out what their pain points are and were and how they tackled them.

One thing I would be very careful with though, is to rush this. Especially because it would need a lot of resources and attention from our side to get it right.

I would love a Hubble NFT, but it definitely remains to be seen if the approach of Marinade works out for them in the end.

Some ideas that could also be explored are:

  • Normal mint with the NFT being in the wallet giving you a discount (people could still speculate on the open market if they want to)
  • Normal mint that requires only SOL, or only HBB (with the HBB choice being cheaper to drive volume)

I’m simply not the biggest fan of artificially introducing friction and have also received feedback from a whale friend (who calls Solana his home) that he doesn’t want to lock his tokens for any time.

Going to have to think about this a bit more. Hope my thoughts aren’t too all over the place, still have not had my morning coffee yet xD.

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