The Titan NFTs are descending onΒ earth
0xf135
June 8th, 2022

Dear reader,

With much joy & excitement, we bring you the launch of the Titan NFT collection 🀟! The original proposal can be found here & the general intro can be found here.

This collection of original Titans aims to provide a new tool for Koios community members. The NFTs will open new doors in learning online and allow members to receive rewards as they add value to the ecosystem by helping others. But, perhaps the most exciting part is that we can't even foresee all the future possibilities!

You are reading our communities proposal for the initial launch of the NFT collection containing a limited amount of 1,000 original Titans. Our intention is to get each original Titan in the hands of our most active and value-adding members. However, we are not in a rush and expect to slowly distribute these Titans in the future. All will have a shot to earn their Titan based on contributions and added value, which can be very diverse. We aim for a responsible launch based on the values of our community: decentralized, transparent, fair, playful, and without the intention of causing harm to others.

For this, we collected the communities input and created this proposal. You can find the outcome below πŸ‘‡

A Titan NFT
A Titan NFT

1. Technical challenges

1.1. On which blockchain should we launch the NFT-collection?

πŸ‘‰ We will launch on Ethereum.

We aim to distribute to core contributors and very active people who have worked hard to have earned them (= 10 $TITANS). They deserve the best for their work β€οΈπŸ™ It is a collection that will form the basis for years to come, aiming for slow distribution (unless activities skyrocket). If/When Koios reaches the 100th anniversary, would you really want to have launched on anything else than Ethereum at this moment in time?

Other reasons for Ethereum:

  • We need to choose something that will be still active in years to come (if any such an assurance can be given) + has innovation prowess regarding NFTs
  • most community NFTs are on eth / most traction, reach, etc. We can focus on growing other than students (a more balanced community, with more seniority and activity from outside as well)
  • most liquidity to experiment with other use cases
  • other NFTprojects on other chains seem to have different focuses and vibes. It feels like a mismatch
  • minting costs can be covered in some cases + as mentioned: students will receive a totally free spin-off in time. They can grow into a full Titan on eth as they contribute (handicap principle at play in that case)
  • Alternative layers will be for later phases. Let's start with a solid (bit more expensive) foundation. Costs are important but not the most crucial factor.
  • We would also like to see some skin in the game + exclusivity. The collection is a small step towards incentivizing students to grow with something as valuable as possible + growing as DAO into something more than only students. Which will benefit students, attract more experience/network/etc.

We will need to balance this collection between exclusivity (desire) and accessibility (equal chance to collect). Too exclusive, and the project might fail due to lack of traction. Too accessible, and the project might fail due to distribution to people that are not contributing much.

1.2 Stealth launch or hyped launch?

πŸ‘‰ Stealth launch (at the start, future might change)

A stealth launch would mean launching a tiny % of the supply to core contributors to test the first solutions to the described challenges. It would be a slow but controlled growth strategy and offers the chance to make iterations. On the other hand, a hyped launch would be distributing the supply to as many different people with a lot of commercial promotion. A scenario like this would be fast and less controlled growth.

The aim is to build a common that will outlive generations to come. We need to launch as fair as possible. We are not in a hurry, and we don't know much about all the different challenges we face to realize a fair launch. A stealth launch would seem to be the more sensible thing to do. This enables gradual growth based on the input we receive from our environments. It allows for adjustments based on community input. We will continuously monitor developments and discuss iterations as a community. A stealth launch will buy us all time. We should not have the illusion that we are already there; this will be a journey of many years.

1.3 Should we migrate the $TITAN to Ethereum as well?

πŸ‘‰ No.

We would like to propose to keep the $TITAN on Polygon for the time being. It is too expensive to launch on Ethereum. It is technically the easiest route for now. Due to the cheap transactions, Polygon allows us to better experiment with all kinds of token engineering solutions.

We will build two sub-graphs, one for the $TITAN (Polygon) and one for the Titan NFT (Ethereum), so both tokens will be visible on the user's profile page. In addition, we will build a minting page: titans.koios.world. Users can burn $TITAN on Polygon via a sacrifice contract and get their address whitelisted to mint an NFT on Ethereum. This will be a manual action, a weekly event to check the correctness, prevent spoofing, and control the distribution of the NFTs. But also to weekly celebrate the arrival of new Titans in our ecosystem. In the future, if we are sure everything works, we can further automatize this process.

1.4 Who will create the contract, and who will launch it?

πŸ‘‰ The community will initiate the KoiosDAO Foundation. The Foundation will ask a trusted developer to launch the NFT contract created by the technical members of our community.

The contract is created by the community developers team. They operate in the open, and you can join them if you are interested in contributing. Please contact #tech-channel, or visit the koios.online GitHub page https://github.com/koiosonline

2. NFT metrics challenges

2.1 Titan NFT Price

πŸ‘‰ To make the NFTs more valuable and prevent an extreme outflow of NFTs, we will opt-in for an exchange rate of 10 $TITANS to 1 NFT.

This rate may change over time, based on developments and feedback. Reasoning: inactive community members with only one or two tokens will not initially be rewarded with a founding Titan NFT + we create an incentive for more contribution to the community (= goal)) + we prove that it is not so easy to score an NFT (= valuable). Due to the improved tokenomics, all can earn XP and $TITANS via contribution, so all will have a shot to become an owner of a founding Titan NFT. 10 $TITANS might sound like many Titans, but nobody has done any proposals in which you can opt-in to be paid in $TITANS. We also added multiple new ways to earn XP, exchangeable for $TITANS. We will asap add more ways to earn Titans. We will also heavily support community activity and the creation of new proposals. We expect significantly more $TITANS to be distributed from this point on. With just chatting once a week, this might take someone two years, so it is time to roll up your sleeves if you want to earn (deliver value to gain value = the more you provide, the more you receive…).

2.2 How many Titan NFTs will be minted?

πŸ‘‰ A 1,000 original founder Titan NFTs will be minted.

Each Titan will represent a contributing founding member. In addition, we expect other (derivative) collections to be launched for experimentation and growth in later phases.

NFTs will be assigned by an algorithm when a user initially mints, introducing randomness (and fairness). The algorithm also randomly selected elements per layer, creating randomized NFTs.

2.3 Initial launch: 10+ $Titan holders receive claim right without burning

πŸ‘‰ We opted-in for an extra claim right for initial distribution.

Without sacrificing $TITANS, everybody who owns 10 $TITANS before the launch of the NFT will be whitelisted to mint one NFT. The free Titan claim right is a thank you to the most active community members. They will maintain their voting power (we don't disturb governance with this initial launch, + we have a small amount of NFTs in circulation for testing).

To test our first use cases without burning too much supply, we must distribute the first batch of NFTs. In our eyes, this distribution would be most constructive (and fair) if we spread one NFT to the most active contributors. However, if you must burn your $TITANS for an NFT, as is the plan for regular distribution, you burn your voting rights. Users will have to choose in time: voting right or NFT. If we burn the voting rights of core contributors, voting would be made more vulnerable to manipulation since not many $TITANS are distributed yet. Nor is sacrificing $TITANS a reward for early contribution. Hence, we opt-in for a free claim right for core contributors for initial distribution. Without sacrificing $TITANS, everybody who owns 10 $TITANS before the launch of the NFT will be whitelisted to mint one NFT. The most active users will receive an NFT and can still vote. They will be the initial voices and faces of our community. Approximately 0,5% of the NFT supply will be airdropped initially, so much room is left for other initiatives.

2.4 Regular distribution: how to earn a founding Titan NFT?

πŸ‘‰ The opportunity to earn $TITANs will soon be highly expanded. This is one of our community's priorities. There are also still many (yet) unknown variables like traction in community engagement, price on secondary markets, etc. The rate of 10:1 is therefore adjustable if circumstances require this (it might be too high or too low). But, again, this too would be a community decision.

We aim to realize a healthy distribution of value across the ecosystem (https://wiki.koios.world/what-can-you-do/you-can-earn). All will have an equal chance to earn XP (in classes and Discord) and $TITANS (contributing and airdrops).

XP can be exchanged for $TITAN, and $TITAN can be traded to an NFT. This:

  • creates a different use case for the $TITAN (other than voting, access, and reputation rights). The $TITAN is not-transferable, but the Titan NFTs are. This introduces possible monetary earnings.
  • burning reduces $TITAN supply and creates a more equal distribution over time for new entrants
  • allows for experimentation with a monetary reward on secondary markets like OpenSea.io

The aim is to distribute the NFTs to core community members, founding titans, who actively contribute. Thanks to $TITAN, this is made more quantifiable. $TITANS can not be bought, only earned. Therefore not money but contribution is leading (Titan NFTs can be purchased from secondary markets). The handicap principle: hard to fake contribution.

2.5 Will we launch on secondary markets?

πŸ‘‰ We will launch the Titan NFT collection on OpenSea. We recommend earning the NFT, not buying the NFT (invest in yourself and not in the NFT).

We will launch the Titan NFT collection on OpenSea, to experiment with attracting new members who buy an NFT from OpenSea. And to experiment with monetary incentives for existing NFT holders (had to work hard for their NFT + will they give up a reputation?).
Koios is an experimental project run by a community. Buying the NFT from secondary markets is a shortcut to certain parts of the community but has several risks. First, limit the risk of losing monetary funds: we recommend earning your NFT and not buying it on secondary markets. This reduces a great many troubles, of which a few examples:

  • Prices on secondary markets can be manipulated
  • The Koios project could fail in multiple ways
  • More Titan NFTs will be minted regularly based on community contributions which might impact prices.

Act smart, invest in yourself and not in the NFT. Earn the NFT, don't buy the NFT.

3. Financial challenges

3.1 Do we pay the mint fee through a faucet, or do the users pay the tx fee themselves?

πŸ‘‰ There is a Matic faucet for burning $TITAN (= fee is covered on Polygon). Users do have to pay for the NFT minting on ETH themselves. Some skin in the game + more attached/valuable.

3.2 What % of revenue goes to the DAO when NFTs are sold on the secondary market?

πŸ‘‰ 0% (for now)

If a collection is successful, this is a viable business model. For example, some communities earn 30% when an NFT is sold. However, we propose 0% (for now). We don't know the legal and fiscal implications if we would conduct a business model like that. For example, will the active community own the money with control but no legal registration, or the passive KoiosDAO foundation with no authority but legal registration? Nor do we know the percentage that would create an equilibrium between costs for NFT holders versus raising funds to grow into a self-sustainable ecosystem. This will have to be a community-based decision based on legal and fiscal advice outcomes. And the desires from within the community and new insights based on how much funds would be needed to become fully self-sustainable. In addition, other peer-to-peer business models can be applied. We expect a percentage between 0-10 to be chosen in time.

3.3 Is the artist rewarded?

πŸ‘‰ Yes, the artist will additionally receive 5 NFTs as a big thanks.

However, the rest of the core community members will only receive 1 NFT because they own >10 $TITANS (making them eligible for the claim right). If we decide to ask for a % per sale in later phases, a part will go to the artist. We are currently creating the artist's story to provide more background about the artist and collection. It will also describe the unrestricted use of intellectual property, enabling users to monetize on their NFT.

3.4 Should we reserve some NFTs to secure the future Treasury?

πŸ‘‰ We don't know what to expect. Hence it seems safe to reserve 10% for the Community Treasury.

We don’t take any further actions, but for now let’s assume only 90% of the supply is available for exchange. When we know more, we will discuss the options within the community on how to distribute that supply. Examples are (x% partners, x% to sell, x% growth, x% for, etc.). This will be determined in a later phase.

4. Community challenges

4.1 How to do external communication?

πŸ‘‰ Underpromise and overdeliver (no hype and ponzinomics).

Partners will be contacted 1-on-1 as each partner has different interests. We haven't decided on methods yet, and that is one of the reasons to do a stealth launch (don't break the rules) and a pre-mint (be able to give the same chances to new members).

πŸ‘‰ Before we better understand the implications, we do a stealth launch to jump-start the experimentation. After initial risk analyses, professional advice, and contact with involved partners, will we apply more use-cases and scale this experiment. We have the intention to build together, evolution and not revolution, to create a healthy balanced ecosystem of engaged partners. We happen to originate from The Hague, the 'international city of peace and justice'. A sound foundation to experiment with the shaping of commons and creating legal frameworks. Although it is easy for the community to copy and fork the project and re-launch from a different country that is more open to DAOs, we search for collaboration with existing parties in the Netherlands.

5.2 State of the Intellectual Property of NFT?

πŸ‘‰ These Titan NFTs are given to you with the most open, accommodating license from Creative Commons (called Creative Commons Attribution 4.0 (International) for the underlying image content. The license allows you to copy, distribute, remix, adapt and build upon the image, even commercially. The license terms are available here: https://creativecommons.org/licenses/by/4.0/legalcode

Arweave TX→
t0zykI_SV4NcX7QKepC9Krxc__9UFx7wg5NqcATs0x4
Ethereum Address→
0xf135A50e57618C1CDc31469BE419C1d624C74e07
Content Digest
OGn4OtA7I1AozZ2N1r8C6gPsFgzsOf_4a3TpNIKOvGs