CryptoPunk Rewards for uPUNKS

Distribute Shares of a CryptoPunk as a Reward for uPUNKS

Basic Summary

Yam Synths will launch imminently with the uPUNKS CryptoPunks synthetic index. The index value is calculated by computing the median transfer price of all CryptoPunks transferred over the last 30-days before expiry of synthetic.

UMA will be providing 10,000 UMA tokens as rewards for the first two weeks after launch of uPUNKS and our community voted to reward 10,000 YAM tokens as incentives for the following two weeks.

This proposal proposes that the Yam Treasury purchases a CryptoPunk (valued at approx $40K USD), fractionalizes it, and distributes the CryptoPunk shares as uPUNKS rewards instead of YAM.

This can be framed marketing wise as “Mint and LP uPUNKS, earn a real CryptoPunk.”

Abstract

This proposal will ask the treasury to purchase a floor CryptoPunk and fractionalize it into 100,000 shares.

  • 51% of the shares will be retained by the Yam Treasury
  • 49% of the shares will be allocated to Mint+LP rewards for uPUNKS.

The Yam community, as majority holders of the CryptoPunk, can vote via governance how and when the Punk should be sold in the future. All proceeds from this future sale will be distributed evenly to shareholders of the CryptoPunk.

The CryptoPunk Shares rewards will run for a period of 1 month. The CryptoPunk rewards will replace the 10,000 YAM rewards previously allocated for uPUNKS liquidity mining.

Specifications

The plan for YAM to aquire the CryptoPunk:

  • Yam Treasury will allocate $40K USD to the purchase of a floor CryptoPunk. This purchase will be done either OTC with a CryptoPunk whale or on the LarvaLabs marketplace.
  • The CryptoPunk will be fractionalized using a service like Unicly or Fractional

The plan for additional CryptoPunk rewards distribution.

  1. $UMA Rewards will start at launch of Yam Synths new website with the launch of the uPUNKS synthetic. Announcement will be made before hand via @Yam.Finance twitter and on discord.
  2. $UMA rewards will last for 2 weeks, then afterwards CryptoPunk rewards will begin and run for 1 month. Anyone staked and LPed will receive their pro-rata share of the CryptoPunk rewards from this proposal.
  3. The CryptoPunk shares will be distributed either via YAM multisig or a decentralized third party such as GEYSR.
  4. As a bonus to the community, all unique Mint and LPers during the CryptoPunk reward period will receive an NFT based on the CryptoPunk that they can use as an avatar.

The CryptoPunk Rewards Proposal offers strong benefits to YAM Community:

  1. Treasury Exposure to CryptoPunks
  2. Deepen our connection to the NFT Community we are marketing towards with uPUNKS
  3. Be one of the first DeFi DAOs to explore innovative ways to use NFT Fractionalization.
  4. Potential Viral Marketing with the “LP uPUNKS, earn a CryptoPunk” messaging.
  5. Potential Viral Marketing with the CryptoPunk avatar NFT reward.