This proposal is for a NounsDAO investment + project collaboration with Verse, a new protocol for autonomous NFTs on Ethereum.
hey everyone! My name’s Kiran Cherukuri. I’m the founder of Verse, an autonomous NFT protocol on Ethereum. Previously, I worked on product design for PartyDAO, and in my web2 life I was a product engineer at health-tech startup Tilda Bio.
Verse is a protocol for autonomous NFTs on Ethereum. What does that mean? Verse enables the creation of NFTs with an embedded ERC-20 exchange. Here’s a quick overview of how the protocol mechanism works:
Through the protocol, a creator deploys a contract
Pair consisting of an ERC-20
Exchange contract and an ERC-721
Hyperobject contract. The dynamic price and supply of the ERC-20 token is managed by a bonding curve acting as an AMM. Simply, this means that anyone can
sell the token at any time with instant liquidity, and the contract will programmatically adjust the price based on the circulating supply. Holders of at least 1 atomic unit of the ERC-20 token can then
redeem their token. Redeeming a token transfers the holder’s ERC-20 to the paired
Hyperobject contract, which
mint s a new NFT and transfers it to the redeemer in exchange.
You can find more information about the protocol here.
The Verse Protocol represents a new medium for NFTs, and enables the creation of digital objects that have their own embedded microeconomy.
One of the most exciting applications for the Verse Protocol are for “build-your-own” NFTs - NFTs which are essentially a blank canvas at time of mint.
- After minting, the NFT holder can “build” the NFT, altering its state and modifying the tokenURI according to predefined logic set in the NFT contract.
- This idea is similar to mechanisms found in projects like Shields and OKPC.
- The NFT is no longer a random, static asset; it’s a dynamic object that is programmatically changed according to the holder’s actions.
As a launch project for Verse V2 and for the “official” release of the protocol, we want to collaborate on a Nouns “Create-your-own-Glasses” NFT project built on the Verse Protocol.
Here’s how the project would look:
- On Verse, we deploy a contract pair of ERC-721 Noun Glasses NFTs and an ERC-20 $GLASSES token.
- The $GLASSES token is exchanged through the contract’s embedded AMM, and can be redeemed for the underlying Noun Glasses NFT at any time (as described in the protocol notes above).
- Each Noun Glasses NFT is just a blank, black and white pair of Noun Glasses when initially redeemed for the $GLASSES token.
Here’s where it gets interesting
- On an NFT like OKPC, each OKPC NFT acts like a mini-computer, and is able to dynamically display artwork on its screen.
- Each artwork is its own NFT, painted by other OKPC owners.
We’d like to supercharge this concept for Nouns Glasses.
Each Nouns Glasses NFT would essentially have its own “operating system”.
- Nouns Glasses NFT holders can customize the appearance of their Glasses by outfitting them with skins and cosmetics created by other holders.
- Holders could sell their created skins - only able to be purchased using the $GLASSES token.
- Thus, the $GLASSES token - while fundamentally a unit of exchange for the corresponding Nouns Glasses NFT - also acts as a native currency used to economically catalyze the development of new designs.
You can even imagine a future in which big brands like Louis Vuitton, Bud Light, or Adidas design their own skins that people can buy with $GLASSES and outfit their glasses.
- Or an even nuttier (yet somehow more tangible) future in which other NFTs, websites, and brands can read your Glasses’ URI and automatically integrate your Glasses’ design and theme into other products and UIs, customizing your experience across the internet.
That’s not where the possibilities stop.
- Essentially, the $GLASSES token acts as a native incentive for token-holding developers to integrate Nouns Glasses NFTs into new experiences.
- There’s a tangential relationship here to Nike & RTFKT’s CryptoKicks - which are customizable digital shoes.
- However, with this new mechanism for the Nouns Glasses NFT on Verse, we’ve not only created a customizable object, but we’ve created a microeconomy around developing designs, features, and experiences around the NFT.
- In the long-term, I envision a future where everyone has a pair of their own, customized digital Noun Glasses like they’re a pair of Chuck Taylors or Air Force 1s.
- You’re going to take them everywhere you go on the internet, and each one is customized by each holder and there’s a whole universe around them.
Ultimately, everyone having their own pair of Glasses supercharges & proliferates the Nouns meme and makes the glasses a staple of internet culture.
On Verse, The Nouns Glasses are an autonomous, self-sustaining, unstoppable idea on the internet. Anyone can interact with $GLASSES/Nouns Glasses contract at any time to buy, sell, or redeem at any time, independent of any intermediary, marketplace, or authority. Thus, Verse turns the Nouns Glasses into a piece of public internet infrastructure that exists forever.
Note: Currently, Verse V1 only supports static NFTs and is more designed as a proof-of-concept to test the autonomous exchange. However, Verse V2 is currently being built and tested to support custom ERC-721 integration, which will enable us to create the contracts & logic for customizable Glasses.
Verse is a new NFT protocol designed to catalyze the future development of internet objects we use every day. Nouns is the prototype for meme proliferation and how to build a CC0 brand that permeates the internet. Ultimately, both entities are designed to build a more composable internet in which individuals build, own, and use digital objects that accrue value as they’re integrated across the web.
We’re currently putting together a funding round for Verse, and firmly believe that the protocol shouldn’t only be owned by traditional venture or finance institutions - it should have ownership from decentralized groups actively advancing and building progressive technologies in the NFT ecosystem.
Thus, we’d like to propose an investment from NounsDAO in the Verse protocol, with the specific stipulation that one of the protocol’s launch projects be the Nouns Glasses project as described above (obv. with any necessary changes that are agreed upon by the DAO before approval).
We think that an investment/long-term partnership would be far more powerful than a grant in that an investment incentivizes both parties (NounsDAO & Verse) to ensure that the Nouns Glasses project is a top-tier product designed for long-term community development and success.
There’s tremendous synergy between the goals of Nouns and Verse, and a long-term partnership would entail close collaborations to build future Nouns-related NFT projects on Verse, and the ability for DAO members to have a real hand in how the protocol evolves over time.
NounsDAO invests 110 ETH + 1 Noun in exchange for ~1% equity into Verse Labs (the incorporated company building the Verse protocol) with an optional token warrant (terms of which are not finalized). These equity figures are consistent with the current terms we have with our lead investors for this funding round.
This funding would go toward scaling the Verse team, hiring fullstack & Solidity engineers to build V2 of the protocol as well as dedicating specific resources to building the custom contracts + interface for the Nouns Glasses project. Additionally, it will be used toward compensating members of the DAO who would be interested in working on the Glasses project in a contractual capacity. Lastly, we’d like to propose the addition of 1 Noun so that Verse can be a voting member of the DAO and align our interests even tighter.
Over the past few months there has been a rapid increase in DAOs investing in crypto-native companies and protocols. However, this dynamic is still relatively nascent and there’s no standard structure for how to structure a DAO investment. For the NounsDAO investment in Verse, I propose that legal ownership of the shares be initially held by the Nouns Foundation. Since the Nouns Foundation is already an operational legal entity with a functioning board, I believe this will be the most straightforward way to handle the investment logistics and handle any legal + operational requirements that must be fulfilled in the near future.
(Note that depending on feedback/proposed product changes, these dates could vary)
Proposal Voting Deadline
May 16 - May 25
NounsDAO community discussions & brainstorms for Glasses project
- Collaborate w/ community members on ideas for NFT design, initial skins, pricing curve parameters, & launch functionality
May 26 - May 29
- Finalize project specs, finalize Verse V2 contracts & deploy to testnet
May 30 - June 17
- Build & test custom logic contracts and integrate into Verse V2 Protocol Contracts
June 18 - July 16
- Build custom UI for exchanging & building the Glasses (conceptually, an immersive web app like okpc.app, shields.build EmblemWeaver, or Nike ID Studio.
July 16 - August 1
- Testing & preparation for public launch
- Public launch
With Verse V2 already into development, we’d like to execute the Nouns Glasses Project for a current target release around the beginning of August. We think that the excitement around new NFT experiments/projects this summer (and esp. after NFT.NYC) will be immense, and believe that launching the project + publicly launching the Verse protocol shortly after this time will provide a ton of valuable exposure for Nouns + Verse.
We’d like to formalize this proposal on-chain with a deadline of May 11. We realize this is a tight timeline, but also recognize the need to move extremely quickly to get started and execute our proposed timeline for the Glasses project.
I couldn’t be more excited to present this proposal and talk to all of you about this collaboration. Please don’t hesitate to ask any questions or present feedback - let’s make this happen together and make the Nouns Glasses an unstoppable piece of internet infrastructure.