This proposal is to partially fund the first development phase of the Compose Network - a Permissionless NFT Utility platform run by NFT participant projects/DAOs. Compose will expand the possibilities and ecosystem of NFT projects by serving as a safe, fast, extensible, interoperable network of projects utilizing novel mechanics.
We are accelerating mass adoption of NFTs.
Having come on to the scene just 8 months ago, Nouns have already shown themselves as an instrumental brand and NFT community. With this growth, a deep interest in funding more ambitious and far-reaching projects has developed.
As a leader in the NFT space, Nouns should be pushing innovation in the technology that supports the DAO and promotes a better way to interact and engage with NFTs.
By co-funding the development for Compose, Nouns will become the first ever reflected NFTs, be amongst the first members of the Compose DAO, and will be earning POSE tokens - allowing them to direct the future of what utilities and collections are supported on the network.
When it comes to building with NFTs, Ethereum is expensive, slow, and has malicious code trying to take your NFTs. While layer two solutions are cheaper / faster, they are still subject to the exact same smart contract risks as well as flaws in bridging (bridge hacks are some of the largest hacks in blockchain history).
Existing projects are now beginning to create utilities for their NFTs and have been duplicating the same use-cases across projects, bringing the same security flaws along the way. So, if the original project ends up getting hacked, all derivative projects face the exact same exploit(s) and vulnerabilities.
On Compose, we allow users to reflect their NFTs through non-custodial means, thus creating a synthetic version of their NFT on our network. We don’t expose users to contract risk, because we never have their actual NFT and all on-chain Compose contracts only interact with their synthetic NFT.
Between its DAO-based permissions model and consensus mechanism, Compose is able to prevent malicious code as well as preserve a high quality network of utilities while still promoting decentralization.
For more detailed details, refer to the Compose Abstract
125 ETH for the delivery of Milestone 1. Funds to be streamed monthly (~31.25 ETH) with an estimated 4 month delivery target.
Core utilities provided on compose network:
- Noun Lore Social Feeds - nouns.compose.art
- Noun Fight Club Game
- Noun Committee DAOs
- Proposals and votes on compose, but treasury management and execution on Ethereum.
- Noun specified utilities (what do nouns want?)
- 1% of all POSE tokens will be split amongst all noun holders (vested).
- Snapshot to be taken at the delivery of the mainnet
- Allocation comes from advisory tokens pool
- Nouns treasury will receive 6,875,000 POSE tokens (0.6875% of total supply)
- Additional disbursements can be made available with sponsorship of additional milestones.
- Nouns can use these POSE tokens for other builders to extend and build on Compose functionality.
Milestone 1 (~4mo) - Bach Testnet
This first version of the testnet will allow users to reflect their noun NFT from Ethereum to Compose, establish a NFT centric social media feed and play a game (death.finance) within the Compose network.
- v0.1 release of the Bach testnet
- A handful of validators consisting of those who contributed to the funding of the network as well as the Compose Core team.
- Ability to reflect a noun NFT from Ethereum onto Compose
- “One click” validator setup for Ubuntu and MacOS
- GUI interface to interact with running validator nodes
- Landing page for nouns with a DNS router 244.nouns.compose.art
- Ability to use nouns page as wallet and social media posting page
- Ability to use nouns in death.finance game
- POSE Earning Mechanics
- Typescript SDK for node RPC
Milestone 2 - Validator DAO Governance
The second version of the testnet will include the initial implementation of a DAO-driven network whereby validators will be able to decide on parameters for what can be deployed to the network and how (e.g. by vote or deployer stakes).
Milestone 3 - Minting Factory
The third version of the testnet will include the backend and frontend infrastructure for an NFT launch platform - allowing anyone to come and launch an NFT project without any coding background.
Milestone 4 - POSE Bridge / Beta Utility Deployment
The fourth version of the testnet will integrate cosmos bridges for transferring POSE to other chains and kick off the ability for third parties to come and develop utilities on POSE to be consumed by supported NFT collections.
Milestone 5 - Requiem
In preparation for mainnet deployment, the fifth version of the testnet will open up the validator pool to any interested parties meeting the hardware requirements for joining. Validators will compete in a multi-month long game “Requiem” where they attempt to break various parts of the network for bug bounties. Fixes coming out of this game will be integrated into the codebase prior to mainnet launch.
Milestone 6 - Mozart Mainnet
After four weeks where no bugs have been found in the network, the mainnet will be deployed, testnet tokens will be converted to mainnet tokens, and validators will switch over to running the network. A new testnet will also be launched to meet the needs of developers wanting to eventually deploy to Compose.
At the time that the mainnet is launched, the token vesting schedule on Ethereum for validators / early network supporters will begin.
Improved security. Presently, a number of contracts deployed to Ethereum allow for honey potting whereby user accounts can be liquidated by simply transferring an airdropped NFT out of their wallet. A DAO-run network would serve to inhibit the proliferation of such malicious contracts within the network and reduce state bloat by advocating for reusability of existing library code.
Ease-of-use. By employing a non-custodial NFT reflection protocol as well as native discord integration, users will be able to easily engage with the network, regardless of the layer one that their NFTs are located on.
Cross-project utilities. Right now, most projects are working separately to deliver similar value - providing a single standard that is reusable across projects will foster greater innovation and growth in the overall NFT community.
Greater transaction throughput. Native state-channel support on top of tendermint consensus provides for much higher transaction throughput required for running realtime games on the network.
Play-and-earn. Holders of supported NFTs projects will be able to easily generate yield on their NFTs simply by participating in the network.
No-code movement for web3. Artists shouldn’t need to know how to code to take part in web3 and take advantage of all the utility that NFTs can offer.
QUESTIONS / CONCERNS
Why not build this on Ethereum?
- Cost - Ethereum is prohibitively expensive for mainstream users.
- Speed - Tendermint consensus is much faster than Ethereum’s - enabling real time utility.
- Security - Our safeguarded smart contracts greatly minimize potential for hacks and our non-custodial model allows users to interact with assets from other chains without them ever being jeopardized.
Why not build on L2 (other EVMs) / Solana?
- While cost and speed are comparable, some of the largest hacks within the blockchain space have exploited bridges on some of these alternative chains - our non-custodial model prohibits hacks like these from ever occurring.
Why is this better than other options today?
- There is nothing that does what reflection does that is presently deployed.
What does having more NFT functionality actually enable, bottom-line?
- A more vibrant ecosystem of innovation and exploration (e.g. Bitcoin’s community vs Ethereum’s community).
What does Compose give to each reflected collection?
- New utilities for their NFT projects out of the box.
- Greater financial upside and value for their NFTs by offering add-ons, air drops, etc… (think beanz for azukis)
125 ETH per milestone, 750 in total - We estimate the entire project will take ~2000 ETH but will be supplemented from other sources.
For more detailed details, refer to the Projected Budget