This chapter describes the core activities of the DAO, going through the initiatives that will define the business model. As described in the Introduction, a DAO is not only a community, but rather a productive organization generating cash flows. Cash flow is the fundamental brick for any company to thrive and innovate. Increasing cash flows means increasing the number of collaborators, taking more risks while investing and more dividends for the stakeholders. There are a number of ways to achieve cash flows, mostly depending on the business segment. We identified a set of meaningful initiatives, aligned with the Vision, that would allow achieving cash flows for the DAO development.
Poseidon DAO Space gallery will primarily aim to bring known and established artists from the traditional art sector to the NFT market. From our point of view, it is important to create synergies and connect the two sides of art that we see advancing in parallel today, with few intersections. By helping already established artists adopt NFTs, we are convinced to bring benefits to the entire ecosystem, allowing them, work after work, to gain greater visibility. From a DAO made up of collectors, curators and above all artists, who have the skills and knowledge to evaluate the works, we will select and exhibit in our space all those that the majority of the DAO will consider worthy. Artists who wish to exhibit in our space will thus have the opportunity to interact with colleagues and other leading figures in the sector and use feedback for constant and 360-degree growth. In this way, the DAO also offers itself as a space for research and selection of emerging artists.
Monthly drops with a limited supply and a limited amount of time, in collaboration with valuable artists. The artists will have their floor price guaranteed and additionally 10% of the Open Edition sale. The participants are incentivized to buy during the open edition because they will automatically receive a certain amount of PDN tokens back in airdrop.
The goal of the initiative is to generate cash flow, pay the team and encourage token distribution.
Collectibles will be a special initiative in collaboration with Niro Perrone wherein 2000 unique collectibles will be minted. The collectibles will be unique cartoon like tridents, with different traits and rarity. The tridents will act as PFP collectibles and will represent the hallmark of DAO contributors.
Founders and board members will receive special tridents, while a small amount will be distributed to token holders in airdrop. Furthermore, token holders will have access to the allow list in order to mint the collectibles at a discounted price. The mint will be available to everyone in a public sale.
The DAO itself will be reserved a number of collectibles, to be distributed or rewarded in future activities. If any collectible should remain unsold, they will be moved into the Community Treasury.
As mentioned in the Vision, further initiatives and developments will be proposed in the spectrum of the DeFi applied to NFTs. Among others, we are investigating opportunities and threat models related to NFTs stacking, where NFTs can be immobilized as collateral to get access to credit. This mechanism can extend the scope of the DAO, making even more room for crypto art collectors.
At the same time, in collaboration with a partner DeFi platform, we will be experimenting indexes as a financialization of crypto art. This space opens up endless opportunities to increase the liquidity in the space, as well as providing access to valuable art to a much wider audience. Tokenization and fractionalization can be leveraged in order to create indexes tied to single artists, a pool of artists or a pool of artworks. These instruments will create a brand-new asset class, based on an underlying that is historically unrelated to the traditional market (Parsons 2021). We envision a future where a CrytpoArtIndex or ETF will be available to everyone, or even more, CyberpunkCryptoArtIndex, PopCryptoArtIndex and much more.
All of this will not be available in the near future, but this is the direction we want to pursue and that would set the DAO as a service provider, tracing a really successful business model.