Context
From NFTs Cambrian explosion has emerged the need for curation mechanisms. While centralized solutions have so far monopolized value-signaling ownership, Nil ambitions to decentralize spot lightening mechanisms.
Inspired by the core belief that supporting creators goes beyond collecting NFTs, the Nil Protocol is structured around dual permissionless curation sequences.
First curation sequence
The first curation sequence will not be live at launch.
The first curation sequence is done via a voting mechanism. Once a creator has applied to join the Nil cohort, curators can signal their support by allocating them some Curation Power (CP). Artists then need to reach an algorithmically determined threshold of CP upvotes to be labeled.
The curation power used by curators to label artists is a consumable balance of points generated by staking $NIL and N.
By immutably recording the connection between a creator and their early supporters, Nil unlocks an innovative on-chain relationship between the two. Creators can leverage this connection, by offering advantages to their early supporters.
Second curation sequence
The second sequence is structured around a “put your money where your mouth is” model.
Note that $vNIL is used to denote vested $NIL. All $vNIL follow a standard 666 days vesting model, designed to ensure Nil DAO long term development. More details regarding the vesting design will be published in the coming papers.
Put it in a nutshell, Nil relies on N holders to incarnate a dual curator-collector role. Their implication in the drop is used as the second spot-lighting signal.
- Creator looks to reach a certain threshold of N holders among their primary sale collectors.
- If this threshold is reached, a $vNIL Generation Sequence is triggered, rewarding the creator at the pro-rata of their contribution to the Nil Ecosystem.
- For each ETH received from the Nil primary market sale, a variable amount of $vNIL is generated and distributed among the participants.
- 80% of the generated $vNIL goes to the creator
- 13.34% are distributed to their initial spot-lighters
- 6.66% belongs to their referrer
The number of $vNIL generated per drop revenues, denominated in $ETH, follows a bonding curve, encoding a premium for early creators dropping on Nil.
This mechanism harmonizes the relationship between a creator and their early supporters while giving back ownership of their production means to the artists. Initial Contributors expect this design to ensure a long-term Win and Make-Win relationship among the creator’s economy participants.
The inception threshold is set to 22% meaning that a creator will trigger the $vNIL generation if 22% of their pieces are minted by N holders, with a maximum threshold value of 1000 mints and a minimum required payment by n holding minters of 10 ETH.
This threshold can be reached via different incentives among which:
- Early access
- Dedicated Price
- Ticket Raffle
- Airdrop
The incentive to get more n holders minting a drop results in some value flowing back from the artist to n holders without the need to provide direct vNil incentives to n holders.
Note that the Generation Sequence settings are managed by the DAO.
Sponsoring
The sponsoring mechanism will not be live at launch.
In addition to the relation unifying a creator and their supporters, Nil introduces a peer-to-peer Referral Program favoring active peer-collaboration.
For introducing an artist, their sponsor will forever receive 6.66% of the $vNIL generated by their reference recipient.
This mechanism naturally incentives creators and community participants to bring in and educate creators, ensuring the constant growth of the Nil ecosystem.
Concluding
Initial contributors expect the Nil Protocol decentralized dual curation mechanism to fairly incentivize on-chain creations spot-lighting while giving back to Creator Economy participants ownership over their production means.
Free the creators.