Aavegotchi Haunt 2 Signal Proposal is Live!

A Brief History of the Haunts

March 2021 saw Haunt 1 arrive with a First Come First Serve (FCFS) NFT drop that released 10,000 NFT Portals. Each portal has the ability to summon one of ten randomly generated Aavegotchis. The entire Haunt sold out in a breathtaking 60 seconds, prompting a conversation around minting a second Haunt sooner than later.

Haunt 2 Proposal Details

How many Portals?

  • 15,000 Portals (each Portal summons one Aavegotchi)
  • Each Portal contains 10 potential Aavegotchis

Stake what tokens to summon?

  • Polygon Aave.com amTokens

What Spirit Forces are completely new?

  • WBTC, MATIC and WETH designs + GHST (pending listing on Aave.com)

How will Portals be distributed?

How does Haunt 2 relate to Season 2 of Rarity Farming?

  • 40% of total Portal revenue will fund the Rarity Farming rewards pool.
  • 2 new “Rookie Season” leaderboards will be added for Kinship and XP (see below)
  • Season 2 reward distribution caps at a maximum 2 Million GHST
  • Any additional GHST in the pool will be reserved and staked to earn more for future seasons.
  • Top 5000 in each of the five categories will farm GHST

Why Haunt 2 now?

The #1 question within our social channels is consistently, “wen Haunt 2”? And there are many reasons for this. The demand for Aavegotchis is great. So much so that our native NFT marketplace, The Baazaar, rarely sees Closed Portals sell for under 800 GHST.

  • Exclusive, non-transferable Haunt 1 themed backgrounds for all first gen summoned Aavegotchis.
  • Two new H2-specific eye shapes
  • An update to the UI indicating which Haunt each Aavegotchi belongs to
  • Significant progress on the Pixelcraft Studios development roadmap
  • Incredible user growth on our home chain, Polygon (aka Matic Network)
  • The release of details and timelines regarding The Gotchiverse Realm virtual world
  • A new NFT drop method, powered by bid-to-earn mechanics

Adjustments to the Virtuous Cycle

There are also a few shifts on the financial side that need to happen before Haunt 2 goes live. The original Haunt had a revenue split that included a massive 33% GHST token burn (along with 40% player rewards, 17% Pixelcraft income and 10% DAO funding). In retrospect, we as the core team found such a significant burn was not the best use of capital. Lessons learned include:

  • Dampened effect: The unique nature of GHST token (asset backed by DAI and minting/burning on a bonding curve) means burning has minimal impact on volatility.
  • Opportunity costs: This massive amount of value burned could have been put to work on behalf of Aavegotchi. In one example, a certain leading exchange offers an OTC desk product to high networth individuals and institutional investors. We were approached to have GHST offered in their catalog, but in order to do so, a minimum stake north of 1 million GHST would be required. By providing that GHST, we would be exposing our token to larger scale investors and also could earn a decent percentage return for simply providing the tokens on a long term loaned basis (not selling them). If we hadn’t just lit our GHST on fire, we would have had the reserves to execute on this sort of opportunity.
  • War chest: Finally, Pixelcraft and AavegotchiDAO are extremely ambitious organizations facing their own unique challenges in regulations, taxation, and scaling. For example, potential taxation on a 33% token burn represents a significant risk factor for Pixelcraft Studios. Even if sailing is smooth, a strong warchest helps both Pixelcraft and the DAO continue healthy growth while remaining independent. While flexible and open to strategic partners, we’d rather not have to ever be in a position where we feel we must sell out to outside parties.
  • Marketing campaigns: Ticket giveaways are a great way to drum up interest in Aavegotchi, but since we are committed to not “pre-minting” any tickets, they must be earned by staking just like everyone else. Having more GHST to stake allows us to generate more tickets which can be used for strategic marketing campaigns and airdrops to help grow the #GotchiGang!
  • Rewards pool = 40%
  • Pixelcraft Studios = 40% (up from 17%)
  • AavegotchiDAO = 15% (up from 10%)
  • GHST burn = 5% (down from 33%)

Haunt 3, Haunt 4 and beyond

The introduction of new leaderboards for Haunt 2 makes sense, but is this sustainable for more Haunts in the future? Are we going to end up with all sorts of tiny slices of pie for each Haunt’s own rewards claim?

Conclusion, time to vote

The conversation for this SigProp will continue in a new SigProp-dedicated dao.aavegotchi.com thread. The vote is set to last for 7 days. Upon reaching quorum and a majority of support, we will see the contents of the vote upgraded to a binding Core Proposal AGIP11. If the vote fails to reach quorum or reach consensus, we will again table Haunt 2 until further notice. It would likely not come up again until some time in Q3 or even later depending on circumstances and the signals received by the wider community.

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