chihuahua

Prop 43: Community Spend Proposal: Chihuahua NFT Marketplace

The Commonwealth discussion can be accessed here.

Motivation

The most popular and essential applications on L1 blockchains are decentralized exchanges (DEXes) and non-fungible token (NFT) marketplaces. These are highly likely to attract new liquidity and increase the number of users on a blockchain and generate the most transactions. They are also essential for users to trade their assets.

Chihuahua's native NFT marketplace

As of February 3rd, 2023, Chihuahua Chain already have a DEX (White Whale) where you can trade different assets. Therefore, we believe the next essential application Chihuahua needs to have is a native NFT marketplace. Why is an NFT marketplace a good thing for a L1 blockchain? Just think about what OpenSea is for Ethereum. If we translate this to Chihuahua Chain, $HUAHUA could potentially become the hub of all memes and dogs NFT collections. It can also be the hub of any NFT collections. How does an NFT marketplace creates value for a blockchain?

  • An NFT marketplace attracts new users and increases liquidity.
  • Non-fungible tokens have demonstrated to be a crucial element in the formation and strengthening of communities within an ecosystem. Strong communities contribute to a sense of belonging and engagement with projects and blockchains. Furthermore, an NFT marketplace is necessary if we wish to enable artists and projects to launch NFTs on the Chihuahua Chain.

Currently, there are several NFT collections related to the Chihuahua Chain, but these are not on the $HUAHUA blockchain. By using ICS721 and CW721 compatible contracts, these NFTs could be transferred onto the $HUAHUA blockchain and have direct use cases. Although ICS721 is not yet available, it is expected to be in the near future. In conclusion, a native NFT marketplace on the $HUAHUA blockchain would have multiple positive impacts on the ecosystem.

Racoon Supply (proposer): Who are we?

Racoon Supply was launched in January 2022 and has since established a gaming platform on Juno Network and Chihuahua Chain. The platform has been utilized by over 2,700 unique players, with more than 2.5 million USDC played and over 9 million games played on the Racoon.Bet platform. The platform is owned by the $SCRT Racoon NFTs and overseen by a front-end and back-end developer. Racoon Supply also has a CW20 token, 90% owned by its community. In December 2022, Racoon Supply launched "Dog Sanctuary," a play-to-earn game on the Chihuahua Chain. The team also assisted with the $HINU rekt drop by designing smart contracts and a decentralized application for users to claim their NFTs, which can be accessed here: Mad Huahua. For more information about Racoon Supply, please refer to the following.

  • https://chihuahua.racoon.bet/
  • https://www.racoon.bet/
  • https://www.racoon.supply/
  • https://twitter.com/RacoonSupply

Our proposition

We believe that a native NFT marketplace on the $HUAHUA blockchain would attract new users and liquidity and help forming new communities within the ecosystem. To promote growth in the NFT scene on $HUAHUA, a diverse range of artists and projects is essential, and a dedicated NFT marketplace is necessary to establish and sustain a thriving NFT community. As Racoon Supply is not funded by external sources, we are requesting financial support from the Chihuahua Community Pool to develop an open-source, permissionless NFT marketplace. The marketplace will be accessible for projects to list their collections and for users to purchase and sell NFTs using any Cosmos-native coins with active IBC channels connected to $HUAHUA.

Details of our proposal

Given that the Chihuahua Chain is still relatively young and has a small user base, we believe that introducing a basic non-fungible token (NFT) marketplace with essential features would be an effective way to establish an NFT presence on the $HUAHUA blockchain. As the user base grows and demands for new features arise, we can progressively enhance the platform and make adjustments as necessary.

What the NFT marketplace would look like and how it would be implemented:

  • Visual:

    • A search feature for collections
    • A profile page for each user
    • A section for featured and trending NFTs, as well as new listings
    • A coming up section, showcasing what's soon to be released on the marketplace

  • Unique page for each NFT collection:

    • A project description, social media links, and additional information
    • Information such as total volume, floor price, and number of owners
    • A search function for NFTs within the collection, with the ability to filter by price and recently sold/listed

  • Unique page for each NFTs:

    • It will display all of the NFT's information and include buttons for transferring, selling, and buying

  • How would it work:

    • New collections will need to submit a pull request to have their information added to the frontend
    • Users will be able to buy and sell NFTs using several native assets that have active IBC channels from and to $HUAHUA. This will bring new assets to the $HUAHUA blockchain.
    • The marketplace will be permissionless with open-sourced smart contracts

Funding from the community pool

In order to build the above NFT marketplace, we are requesting 650M from the Chihuahua Community Pool. This is approximately 65,000 USD as of January 28, 2023. These funds would be used over multiple milestones:

Milestone #0 - Preparation and planning: (1-2 weeks)

  • 100M $HUAHUA up-front to start the project and pay the developers
  • Release of an official plan with deliverables and a roadmap for the community
  • Sketches of the dApp/UI and how the NFT marketplace smart contract will work

Milestone #1 - Alpha version of the platform: (4-6 weeks)

  • 200M $HUAHUA
  • Local and testnet development
  • An alpha version of the NFT marketplace smart contract
  • An alpha version of the dApp/UI
  • Gathering feedback from the community and users regarding the alpha version
  • Smart contracts unit and integration testing

Milestone #2 - Beta version of the platform: (4-6 weeks)

  • 100M $HUAHUA
  • A beta version of the smart contract and dApp/UI
  • Users will be able to try and test the dApp and smart contract to provide feedback
  • Simulation testing to test the scalability of the frontend and smart contracts

Milestone #3 - Beta version 2 of the platform: (4-6 weeks)

  • 100M $HUAHUA
  • The final version of the smart contract and dApp will be released on the testnet and mainnet
  • Release of test contracts on the mainnet for users to try and test the dApp and smart contract
  • Gathering feedback and comments to deliver exactly what users want
  • Final round of testing on the mainnet and finalizing simulation testing in a real environment

Milestone #4 - Release: (1-2 weeks)

  • 100M $HUAHUA
  • The official release
  • Gathering comments from users to make potential final updates/improvements

Milestone #5 - Ongoing maintenance and small improvements:

  • 50M $HUAHUA
  • Ongoing maintenance and improvements

Distribution of marketplace revenues

We believe that being funded by a community pool requires the beneficiary to implement a mechanism for returning money to the community pool. This makes the pool more sustainable and can be used by others. The revenues for the NFT marketplace are:

  • 4.20% of all sales
  • A listing fee of 6.9 $HUAHUA

Below is how we propose to return the revenues to the community pool:

  • Until 420,690,000.00 $HUAHUA is returned to the community pool:

    • 75% of revenues will be sent to the community pool.
    • 24% will be burned. If the revenues are in another native denomination, a buy-back of $HUAHUA will be executed to burn the $HUAHUA.
    • 1% used for a recurring lottery among all wallets that have spent a given amount on the marketplace. For example, each wallet that has 100k $HUAHUA (value is taken as an example) volume on the NFT marketplace for a given amount of time gets a free lottery ticket.

  • After the 420,690,000.00 $HUAHUA has been sent back to the community pool:

    • 50% will be used for maintenance and future developments of the platform
    • 25% will be sent to the community pool
    • 17.1% will be sent to Racoon Supply DAOs
    • 6.9% will be burned. If the revenues are in another native denomination, a buy-back of $HUAHUA will be executed to burn the $HUAHUA.
    • 1% for the recurring lottery (as explained above)

Conclusion

In conclusion, we hope our proposal makes sense for everyone and that you understand the value an NFT marketplace brings to the Chihuahua Chain and the $HUAHUA communities. We welcome any feedback and comments to improve our proposal and align it with what the $HUAHUA community thinks would generate the most value.