Many have said that we are at the dawn of a new era with the decentralized web and blockchain industry, likened to the 1800’s era of pioneers moving out west into the unknown to conquer and shape new frontiers.
But like any new environment, the web3 landscape is barren, dusty, flat, and goes on for miles as far as the eyes can see. Just like we use GPS coordinates to locate and navigate the real world, we also use markers and identifiers to find resources online.
Just like in 1983 when DNS was created to make navigating the web more user-friendly, so instead of having to remember http://108.177.11.100 we simply type in google.com to help us navigate the modern web today.
Just like in 2017 when ENS was created to make using Ethereum more user friendly, so instead of having to remember 0x5f83123f062618404553a8c4dd6c89d9e3923898 we simply send ECR20s, and ERC721s to blockequity.eth to help us navigate the decentralized web today.
The astute reader will notice I made very slight changes in between both sentences above and oddly enough still reads perfectly. This is because the opportunity in front of us mirrors exactly what the early internet looked like in 1983, which is - ripe fertile soil just waiting to be turned into bountiful crops.
Ok so why am I here?
Because you’re a giga 🧠 and you can see that the opportunity for ENS is immense, even if everyone else doesn’t see it yet, and you also don’t want to get caught holding some shit nft bags, let’s be real.
However ENS represents the future land upon which an industry will be born and revolutionize the way we communicate, do business together, and ultimately show off the communities that mean the most to us.
So the goal is simple, acquire & continue acquiring premium ENS domain names with high commercial appeal to build into prime web3 assets in the marketplace.
So What’s The Plan?
To avoid adopting a “pray and wait” strategy, we will deploy a “own and build” approach where the end goal is always to build world class software on top of prime real estate.
For example we would identify an opportunity say aggregation, and choose a high-quality name to build out a decentralized platform on, say for example onlinemall.eth (which we own btw) to create and deploy a competitor in that specific category.
With the web3 space being so new, there are no shortage of ideas and ventures to explore in the industry. Let us take the opportunity to build a strong ecosystem with premium ENS domains at its core. We can add value where value is needed but also increase the utility of the underlying “vacant” land.
Why Do You Keep Calling It Land?
Location, Location, Location - That’s why. But that’s a great question and it goes back to my early pioneer reference. We feel that ENS is the raw land upon which the next group of Google’s and Amazon’s will be built. And how couldn’t they be?
Online Wallet & Bank Account
One Login & Password
Free Site Hosting
Social Profile Attestation
Email??? - that’s all we’re missing rn
Payments and wallets are natively built-in, decentralized site hosting is here (just add .eth.link or .eth.limo and your site resolves. try it out → vitalik.eth.limo), it’s your universal sign in now so we’re done with multiple logins and passwords, it can verify your BAYC pfp, and I think we’re just scratching the surface but even still we have a very capable, and powerful utility in the Ethereum Name Service.
It’s my firm belief .eth names function more like self-contained online businesses than anything else we’ve ever seen to date. I’ll be writing more about this topic in-depth in future articles, so stay tuned.
Ok I’m Down, Tell Me More!!
Let’s DAO it then, nobody has done a premium ENS developer DAO yet, so why not us?
Many other DAOs before us have been created to foster and build out the communities that those participants are most passionate about, ENS provides a solid foundation to build lasting legacies on.
We’re using the Juicebox Protocol as a programmable treasury that allows projects to decide how tokens are minted when it receives money. It also allows rules to be set that determine how the funds are distributed, and users can reclaim their original token at anytime during the projects funding. Changes to a project's funding configuration require a community-approved period to take effect, which acts as a safeguard against rug pulls.
Our funding cycles are based around 30 day rounds in which we deploy the funds based on the following percentages.
40% - Premium Expired Registrations
For a myriad of different reasons, every day thousands of domain names expire, and with the updated pricing structure to dropped names all new registrations start as temporary premiums with a degrading pricing fee over 30 days. This allows anyone to pay what they feel the domain name is worth to them, as a motivated buyer will naturally pay the most to acquire said domain name.
We view this as a great time to own some highly prized domain names, and we are not sure how many more cycles there will be where premium names come up for expiration to be freely registered by market participants. Premium names will be identified before expiration and voted on by members of the DAO for registration.
30% - Secondary Aftermarket Purchases
Some of the most highly desirable names are already in the possession of astute investors and will only be available via secondary marketplaces. We’ve allocated almost a third of the budget to purchase names from secondary sellers, and will determine by vote from DAO members which names to actively pursue based upon certain investment criteria.
19% - Software Development
The third-largest distribution of capital will be earmarked for software development of projects and ideas formed by the DAO council and voted on by members for development into a revenue-producing asset. In the later stages of the DAO, software development will become the largest component of fund distribution as we progress forward in creating a diverse ecosystem built upon premium ENS domain names.
5% - Operations & Maintenance
To handle the day-to-day operations, roadmap planning, in addition to maintaining any paid services needed to function and maintain the DAO daily. This can include salaries to contributors and bounties to DAO members for active contributions to the project, finding partnerships, and securing marketing opportunities and/or sponsorships.
3% - Renewals & New Registrations
Just like the traditional domain name world we still need to pay yearly renewal fees to maintain possession of DAO assets. We’ve allocated 3% for yearly renewals and new registrations of domain names, however, we anticipate the number of new registrations to trend downward over time as the available supply of worthwhile names dries up.
2% - Acquisitions & R&D
To become a recognizable brand in the ENS ecosystem we plan to build, and invest in innovative software tools in the space. We’ve allocated a small percentage of funds to allow us to grow vertically in the industry to enable users the most frictionless experience that web3 has to offer.
1% - Gas & Misc Expenses
This expense comes with the cost of doing business on the Ethereum blockchain, and it’s one that no one can escape. Luckily gas has come down to historic lows and presents a great opportunity to register names at lower costs while network conditions persist, the miscellaneous would also cover any contract creation related expenses.
What’s The 2022 Roadmap?
Well, there isn’t one and honestly we don’t feel like complicating something that’s supposed to be relatively easy with a long drawn out roadmap. I mean we buy premium domain names and turn them into revenue producing assets, simple enough. But like real estate (there’s that reference again) this is a long game, so here’s what we estimate the timelines to be, it could happen faster or slower than what’s predicted.
Short Term Outlook (18-36 months):
Buy, sell, and register premium ENS names for short-term revenue. This is the timeframe we feel that most smart money will begin to recognize the opportunity at the forefront.
Early crypto whales, traditional domain name investors, and finally institutional buyers who will have the capital to buy out entire DAO portfolios.
Long Term Outlook (36-60+ months):
Develop premium ENS inventory into commercial services or public goods.
Lease premium ENS inventory to interested parties, and generate value on dormant assets.
In Closing:
While the most popular opinion of the current market is to take a wait and hold approach to their domain name investments. BlockEquity is taking a different approach, by acquiring the best parcels of raw fertile land and turning them into world-class dapps, and infrastructure to empower web3 users and the decentralized economy. Come join us on the journey!
Reach out and get in touch anytime:
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