ShapeShift

Summary

The ShapeShift corporation plans to burn 649 ShapeShift CD’s in its possession (original spells of genesis NFTs from 2015 https://xchain.io/asset/SHAPESHIFTCD), retain 16 of them for sale on behalf of the corporation through end of the year and give the remaining 16 to the ShapeShift DAO treasury. In order to receive these cards, FOX token holders will need to signal agreement via voting for this proposal to the following terms: 5 cards immediately available for transfer by the DAO (up to FOX governance whether to sell or hold them), 5 additional cards cannot be transferred/sold for at least 1 year and the last 6 cards cannot be transferred/sold for at least 2 years.

Abstract

After ShapeShift corp burns 649 of the 681 cards in its possession, less than 200 such cards will ever exist in the wild which would make them among the most rare SoG cards in existence and among the oldest NFTs in existence. These are some of the earliest NFTs (circa 2015) that were minted by Spells of Genesis and given to ShapeShift as part of our partnership supporting their early blockchain-based game development. These could end up being some of the rarest and most historical NFTs ever.

Motivation

By agreeing to the terms laid out in (1), the DAO will get a gift of 16 historical ShapeShift themed NFT cards which will unlock over the next 2 years in 3 tranches (5 available immediately, 5 that cannot be moved for 1 year, and 6 that cannot be moved for 2 years). The cards could prove to be a valuable and important asset of the ShapeShift DAO treasury, and whether the DAO sells or holds these NFTs for the long term is up to FOX Token holders.

Specification

The ShapeShift corp will be burning 649 ShapeShift CD’s on XCP this week, and then moving the remaining 32 in its possession from XCP to Ethereum via the Emblem Vault bridge. Once that happens 16 will remain in the corp’s possession to be auctioned off on behalf of its shareholders, and the remaining 16 will be sent to the DAO if the DAO votes to ratify this proposal and its terms around the tranches unlocking.

Benefits

The major benefit is the DAO is gifted 16 of these extremely rare and historical ShapeShift themed NFT cards, it has the option to sell some of them immediately, and more in the future over the next 1-2 years as further tranches unlock. Whether the DAO sells these NFTs for ETH, holds them for the long term, or some combination thereof they will become a valuable and important asset in the ShapeShift DAO treasury.

Drawbacks

I do not see any major drawbacks to this proposal other than some of the DAO’s newly acquired NFTs cannot be sold for 1-2 years, but given the DAO currently owns 0 of these I don’t see that as a major problem. There is some chance the NFTs do not end up being valuable and become a non-useful asset, but even in that case no harm is done to the DAO.

Vote

A “for” vote would mean agreeing to the terms of the DAO treasury accepting 16 ShapeShift CD’s into its treasury (5 available immediately, 5 after one year, and the final 6 after 2 years). These terms would need to be enforced by social consensus of the DAO with token holders agreeing to downvote any proposal that would try to break these terms over the next 2 years.

An “against” vote would mean not agreeing to the terms and no ShapeShift CD’s would be sent to the DAO treasury.

Special thanks to the SoG community for helping advise and bring these important assets to light on behalf of the DAO (especially TG, White Rabbit, and Cornholio)