Nouns DAO

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I. WHAT IS THIS PROJECT?

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Designed for maximum NOUNish-ness, these colorful 3” tall mini figures are meant to be a fun, low cost and non-crypto-based entry point into the world of “NOUNs.” Nounish Friends will be packed into colorful mystery boxes and presented in eye catching counter display cartons which are found in shops worldwide. Prop 72 funded with 20ETH to take this project from initial idea, through countless iterations, to the current designs & prototypes. We have communicated updates weekly on the Discord here and have had many conversations on Discourse here, gathering feedback from over 50 comments to arrive at the final designs we’re proposing today.

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II. PROJECT DEVELOPMENT COSTS:

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CURRENT STAGE:

• Engineering: tooling masters, paint masks, production molds, Packaging, Final branding, box and display box design and dies: $45K (one time cost)
• Manufacturing: $53K for 10K pcs
• Logistics/warehousing: $29K
• Marketing, project management & B2B & B2C sales: $40K for 6 months. This involves sample photography,press, targeted social media engagement, onboarding and follow ups, potential partner onboarding and communications. This includes unexpected sample creations and air shipping for events such as Art Basel, Dcon, NFTNYC and other opportunities world wide while the mass production run is being produced.
• TOTAL ASK: $167K USD

PAYMENT SCHEDULE: Payments to be broken down into 3 milestones as follows:

• 35% upfront ($58,450 USD) Preproduction deposit for further final development of graphics, packaging templates, tooling molds, paint molds, and final samples.
• 35% on Milestone 1 ($58,450 USD) Deposit for mass production deposit once tooling test shots and painted counter sample approvals,
• 30% on Milestone 2 (50,100 USD) Full balance paid out once production passes testing. QC inspection and is ready to ship to our warehouse by sea.

PAYMENT DETAILS

• GNOSIS SAFE ETH will be sent to a 2/3 Gnosis Safe with the following signers: Bigshot Klim - 0xd25912007EBC2527d4ED9DC536f928E550b0f02C Joshua Fisher - JoshuaFisher.eth Joel Cares - JoelCares.eth

• ETH -> USD CONVERSION Calculations done on 9/14/2022 at $1,600 USD / ETH Project Cost = $167,000 USD = 104.38 ETH Volatility Buffer (10%) = 10.44 ETH TOTAL ASK = 114.82 ETH

• PROCEDURE

  • A 10% buffer was added to the ask to account for volatility in ETH prices prior to conversion.
  • Upon recieving the funds Gnosis Safe operators will immediately convert ETH to USDC to cover total Project Cost. The USDC will be held in the safe and released to Bigshot Klim when Milestones are completed.
  • If for any reason there are excess funds (ETH remaining after conversion, milestones not hit) any unspent funds will be returned to Nouns DAO.
  • If the value of ETH falls sufficiently before conversion and this value no longer covers project costs another proposal will be submitted to cover the difference.

• TRANSACTION transfer 114.82 ETH to 0xA04D191Ae755c442B5e4a0ea10136b7B0354cC6a

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III. FUTURE STEPS

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Our 10,000 physical toys will be utilized for both sales and giveaways for maximum reach and value. We believe that both are important aspect of this proof of concept model moving forward:

• 10% -1,000 toys(100 sets) allocated to community members and other Nouns initiatives like Nouns OTG, Rose Bowl and Art Basel Miami etc. Final production Toys will be allocated and shipped from our warehouse (worldwide approx shipping/handling cost $35 per case of toys)
• 9,000 units to be sold at SRP $14/toy, or approx $7 wholesale + shipping. Portion of the sales will be used to develop series 2 and put forth in a proposal if the project is a success.
• Option for DAO allocated additional quantities from this edition at $7/unit
• Option to re-order at lower unit cost ($5-6/unit) in a future run.
• Option to create unique colorways & revised single-unit packaging at lower unit cost.
• A collectible card with a POAP is included with each toy. Use TBD, but it will help with future engagement and retain customer attention.Collectors and fans could receive digital goodies, participate in games, contests or win prizes from our NOUNWORKS shop, and/or have access to unique experiences for POAP holders only. Goodies and prizes can be things in our shops or future items from the community based on the promotions and future partnerships and collaborations(TBD) based on Nounish partners and collaborations.

It is imperative that we expedite manufacturing so that we can have product ready for public introduction and review at Designercon in November 18-20 2022 (10X20 Booth booked), Art Basel in Miami in December, and possible availability for distribution at Rose Bowl (Jan 1, 2023) with Stoopid Buddy Studios. We can support global meet ups with products as well as some blank figures for local artists to paint.

All of the items ship from a central location in USA so the marketing and proliferation logistics are perfectly aligned. These steps, including ongoing press and social media support, are crucial to any project of this scope and everything has a price. Since we have multiple ongoing projects with NOUNs and plan many more, we want to be as efficient as possible with our time as well as resources. We are excited to create and distribute the very best Nouns toys! We have built out a model that is scalable for large-scale runs in the future after this concept is proven.