The Crown NFT is always available to purchase, the current owner is unable to take the NFT off the market. This allows the NFT to continually and clearly accrue value.
The next purchase price is set at a higher price (in ETH) that the previous purchase price. The current mechanic is a 10% increase, and will be finalised before a main net launch.
Like many ‘DAOs’ the initial operation of the DAO will be centralised to the core team, and will spin out to the community as the project matures.
The members of the DAO are the previous holders of the Crown NFT who will receive a Membership NFT when the Crown has been purchased from them.
Members can choose to leave the DAO by burning their membership NFT. On burning their NFT they will receive Gold our native ERC20 token.
On contract deployment an eth/gold Uniswap V2 liquidity pool is made.
The ETH raised through purchases flows to the liquidity pool in two ways.
Gold is purchased from the liquidity pool and burnt.
Gold is minted and supplied with the ETH as liquidity to the pool at the current prices
The contract aims to the keep a certain percentage of circulating gold tokens in the liquidity pool. For the test contracts this is currently set at 20%. On deployment 100% of gold is within the liquidity pool, so the initial transactions will likely all see gold being purchased and burnt.
Some percentage of tokens will be minted to the DAO too
Membership NFTs are minted to the previous holder on purchase of the crown.
Membership NFTs all have an associated value in Gold, which is calculated to be more favourable than if they had purchased Gold on the open market through Uniswap, rather than purchasing The Crown. Encouraging interested individuals to purchase the crown rather than the ERC20 directly.
To access the associated value of gold, the owner is required to burn their membership token which will transfer the gold to their account.
Holders of Membership NFTs are DAO members and will be able to vote on how the DAO allocates its resources and have access to the Discord and events.
What gives The Crown NFT any value? Why should anybody bother purchasing it? Initially the value comes from an innovative mechanic of the NFT always being on sale for a higher price combined with the tokenomics of how the sales revenue flows through the system. However this is most likely not enough to make the NFT the most expensive in the world, however this is a project that will develop and evolve as it grows with the help of its members.
Both the Crown NFT contract and the Membership contract can be updated to change the NFT images associated with those contracts. An initial project of the DAO may be to onboard a specific artist to give greater desirability to displaying your ownership of the crown. The crown should be prestigious and should have art which reflects that.
Currently there is a twitter account that is associated with The Crown. The owner of The Crown NFT is the only person who can tweet from this account. Currently this is through sending messages in a discord channel, but if the DAO decides this could be built out into a web interface.
Other substantial areas of focus could be:
Mint Lists for upcoming NFT projects
Access to IRL events
Prize for the owner of The Crown on a specific day or in a specific block.
Prize for the most amount of time owning the crown in a month/year.
The crown project will bring together people who are interested in a new frontier of NFT mechanics, DEFI and DAO structures, and have the shared goal of making The Crown Project as successful as it can be. This will be a unique group of people, with community dynamics not currently seen across the space.