Plutocats is a community inspired by our experience in Nouns. We’re building a way to fund creators in the Blast ecosystem using yield earned from pooled capital through the sale of membership NFTs. We call this social staking.

Plutocats is being developed in phases. In the first phase, anyone can mint a plutocat to join the community. ETH from membership sales are held in a reserve that earns Blast native yield. Members can leave at any time and claim their pro rata share of the reserve by returning their NFTs. Next, we’ll hold a community vote to introduce DAO governance over the reserve yield. An ERC-20 token will be distributed to members of the community which will represent their voting rights in the DAO.

NFT

Plutocats are generative PFPs with art that is stored entirely onchain.

The NFTs are sold via continuous dutch auction, or VRGDA, where the price of each plutocat is dynamic and based on daily demand. The minimum price is set to book value of a plutocat (ETH in Reserve / number of circulating memberships).

Using VRGDA ensures plutocats find a fair market price that is based on temporal demand. Setting a minimum price protects existing members from dilution should they choose to leave the community at a later time.

Reserve

ETH from sales of Plutocats memberships are held in a reserve where it earns Blast native yield. Functionality of the Reserve is limited to holding ether, accumulating yield, and providing a pathway for members to exit fairly.

Exit

Plutocat members may exit at anytime and collect their pro rata share of the Reserve. NFTs from members that have left are returned to the Reserve and removed from the circulating supply.

Governance Bootstrap

Initially, a minimal governor (called the bootstrap) maintains all ownership over Plutocats contracts. The purpose of the bootstrap contract is to provide a sufficiently decentralized path to incorporate DAO governance. In the future, Plutocats founders (wiz, tm0b1l) will propose the address of the official DAO to migrate contract ownership to. Members will vote on the path forward, deciding if proposed DAO governance will be adopted by the community.

To prevent griefing, we retain proposer rights for electing an address to migrate contract ownership to. These proposer rights *do not* enable modification of the Plutocats protocol in any way and can only be used to provide the community with a path towards community governance. If a migration is successfully voted on by the community, contract ownership will be transferred to the DAO and the bootstrap contract will be locked forever. Only the yield earned from the reserve will be forwarded to the DAO treasury, enabling governance over a continuous stream of funds that will be used to fund Blast ecosystem projects and creators.

Future

After migrating to a DAO, the reserve will remain unchanged providing a fair exit path for members should they wish to leave.

Governance Token

Voting power in the DAO will be represented by a new ERC-20 token that will be distributed to Plutocats members. DAO proposals and token-weighted voting will determine how collective yield from the reserve is spent going forward. We’re still working on the details for voting rights distribution but we aim to make it as fair as possible. We expect to work closely with the community to find the most optimal path moving forward.

Final Thoughts

Social staking provides a new opportunity to structure DAOs in a way that is particularly suited to Blast and the native yield it provides. We think implementing mechanisms to protect NFT holder value, providing a pathway for fair exit, and only proposing the DAO spend yield removes many risks associated with classic onchain organizations.

Phase 1 will be launched shortly after the release of Blast mainnet. Follow @plutocatswtf on Twitter for updates and info on the launch.

website: plutocats.wtf