## Implementing NFT Governance into SharkDAO

# Shark Island - Coming to Shore

**Hello Sharks!**
- This is hopefully the final product document detailing upcoming changes to our DAO (if agreed upon by a SIP) brought forth by the Shark Island project

**Why do we need another SIP?**
- The structure suggested below moves our $SHARK governance into a full NFT, Nouns style, governance model.
- This was not accounted for in previous SIP's
- We have the tech in place, but these structural changes need to be fundamentally cleared by the DAO.

## **NFT Project**

### On chain Sharks! A Nouns fork called **Shark Island**

#### **Details**
- Shark Island will be a Nouns fork with some key differences that allows for the conversion of existing $SHARK governance into NFT voting - similar to Nouns DAO
- Why turn into a Nouns Fork?
- Further aligns our community with Nouns
- Most of our contributors also build in Nouns DAO
- Most of our treasury are historically important Nouns
- Governance
- $SHARK governance turns into NFT governance
- In the interim process, we will use a custom voting strategy that includes $SHARK, Mint Passes, and Shark Island NFT's via Snapshot.
- This can inevitably be moved to Compound (Nouns Style) Governance if the DAO agrees. Which measn voting on-chain (paying to issue transactions)
- $SHARK becomes a way for contributors to earn more NFT's
- Creator Contests allow people to earn their way to a fulL Shark NFT
- Convert $SHARK into NFT's via the contract mechanic

##### **Artists**
- Shark's are made by different artists, both well-established and up & coming.
- Check out our latest art [here!](https://nft.bueno.art/share/yCsWHMqh9vOsuENDkmWZ3?key=7b85e407-8062-4811-a45d-2d8ebf4d0c78)
- Artists include: Numo, Goldy, David Horvath, Timpers, Gustavo Viselner, eBoy, Maty, Teddy Wilder, jjjjsssssnnn, Pixel Art Girl, Ser Noadz, mae, and more
- "Season 2" of art contributions could be aquatic themed.


##### **Mint Passes**
- 200,000 $SHARK can be converted into a mint pass
- At our original Juicebox valuation this would cost .2 ETH
- Current supply of $SHARK means roughly 2630 mint passes are available to redeem
- Mint passes can be used during any auction to mint a new Shark with the same head attribute

##### **Dillution**
- Understanding Dillution:
- Dillution is important as a funding mechanism for our DAO
- We have tradtionally been dillutive by printing $SHARK via Juicebox
- Dillution is what has given us revenue to bid on Nouns and fund builder activities
- 526mm Shark means about 2630 heads are mintable at any time
- 800 free mints distributed to existing members (1 per Shark guaranteed to those who joined by original SIP)
- There will be a "proof of human" / contribution metric on signup for the free pass
- e.g. 25 messages in Discord, voted via Snapshot
- We will reserve unclaimed supply to our treasury (no more than 800 total including signup) so that latecomers do not miss out on the opportunity
- 470 to the contributors who built this project (formerly known as SharkLabs)
- [These distributions were previously approved via SIP-45](https://snapshot.org/#/sharkdao.eth/proposal/0x35dba4baa75c300467849fd47e26363bcfcdd45dc2668c4508370ffdccc92a89)
- How much should we dillute our DAO each year?
- Three Models
- Assuming ~4000 mints across the original SharkDAO Members,
- 47 minute cadence means that ~11000 NFTs could be potentially minted in a year
- Original Shark's would potentially be dilluted to ~26% ownership in the first year
- 1 hour 47 minute cadence means that ~4900 NFTs could be potentially minted in a year
- Original Shark's would potentially be dilluted to ~45% ownership in the first year
- 4 hr 47 hour minute cadence means that ~1830 NFTs could be potentially minted in a year
- Original Shark's would potentially be dilluted to ~67% ownership in the first year
- What is the right dillution to target y/y?

##### **Website Experience**
- Previously we wanted to make a more immerisve, interactive wbesite.
- Strategically it feels best to target a "Nouns UI" - that is Shark Island themed
- [Lost Nouns](https://lostnouns.wtf/), [Lil Nouns](https://lilnouns.wtf/), and [Nouns](https://nouns.wtf/) are examples
- Messhup contributing designs
- Gallery to view our treasury

##### **Finances**
- Revenue goes to DAO
- Do we send any NFTs to anywhere other than auction?
- E.g. every 47th Shark goes to the treasury
- Contribute Supply
- Distribution to contributors who helped in any form
- Artists Proceeds:
- 1 or 2 Mint passes per artist
- .3 ETH per accepted submission
- 50% proceeds of their first auction
- Seconadry Royalty:
- Previously shipped 10% scaling to 2.5% - now suggesting down to 0%
- In line with Nouns

##### **SharkDAO North Star**
- We are a DAO for Builders
- We are funding builders and experimenting within the Nouns ecosystem
- Pilot small initiatives and then take them to Nouns
- Who is our community?
- NounsDAO fans and builders
- Enjoy trading, some members joined to speculate on Nouns

##### **NOUNSDAO THINKTANK AND PROPOSAL PIPELINE**
- Shipping Nouns proposals every week
- Supporting content around proposals
- Details: [https://www.notion.so/sharkdao/Shark-Tank-A-NounsDao-Think-Tank-SharkDao-72c46811d06f46ba81499d78e2d83ec8](https://)

##### **ALPHA DEGEN**
- Trading tips and sharing NFT projects
- Whitelist spots in other projects
- Autonomous Community Wallet?