Discussions-to: [BIP-001] Investment Committee
Implementation (optional): [Added if BIP passes]
We elect GFunk and TropoFarmer to use 50 ETH from the Honeypot to buy and sell NFTs. These two curators will be paid via a performance fee - every time they sell a JPEG and generate profit to the Honeypot, they collect 10% of that profit each. We will reinvest all the profits back into this program.
We put our capital to work using an elected committee and share a % of the profits with that committee.
Unfair advantage #1: Our huge Honeypot, with 245+ ETH in our balance sheets, we immediately start to think of ways we could put that money to work.
Unfair advantage #2: GFunk and Tropofarmer - we couldn’t ask for a better duo. OG NTF people that know how hard it is to launch a great project and can easily spot one in the wild.
GFunk - Wearer of many hats, Founder @pixelvault_ @punkscomic & @MetaHero_
TropoFarmer - Illustrious NFT shitposter and flipper extraordinaire, who turned $500 into an estimated $200k in jpegs
Unfair advantage #3: The investment committee will be armed with MEV (Miner Extractable Value) technology developed by the Buzzed Bears. This will allow the committee to make moves that might be impossible otherwise.
~250 ETH is sitting idle in our wallet, let’s put it to work.
We fund a gnosis 3 safe with 50 ETH (~20% of our Honeypot) where both the curators will be able to make purchases from using a 2 out of 3 multisig setup including both curators and defijesus.eth (I’m included just to facilitate some technical hurdles, I won’t be interfering with the investment decisions in any way). Buying via gnosis safe might not be feasible for projects we use MEV stuff due to technical limitations.
1 JPEG = 1 Trade. We calculate profit per trade. The Buzzed Bears reserve the right to change/terminate the project to accommodate new circumstances at any time. If the curators leave and we sell the JPEG later at a profit they are still entitled to the performance fee.
We decided to bring on curators because if we, as an organisation, vote on every purchase we make we will be open to attackers frontrunning our moves. Also, some moves might have to be time sensitive, making it very cumbersome to vote on every NFT investment we make.
In order to align the incentives of the curators and the community, the curators will be paid via performance fee. They only make a profit if we make a profit. 10% for each curator is more than fair and leaves the Honeypot to get 80% of the revenue generated by this initiative.
We are only deploying 50 ETH and we can decide to end this program at any time. After showing results, we can commit to use more funds.
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