4.1 Yield Pool
Disclaimer: The Yield Pool will not go into effect until after the final batch of mechs are released and is subject to change.
The yield pool is akin to a community wallet found in other NFT projects with two distinct differences: 1) The wallet is actively managed and assets within are operated by the Atlessio Family metaverse gaming guild.
2) Where many DAOs have a majority of their assets consolidated into one large Layer 1 token (ETH, SOL etc.), the allocation of assets from Mob Machina's Yield Pool will be diversified across a basket of assets in an attempt to outperform the market.
The Yield Pool is initiated via the minting of Mob Machina NFTs.
50% of all revenues (including post-mint royalties) will go directly into the Yield Pool.
The Yield Pool will be actively managed and diversified into a basket of crypto and metaverse assets including: Layer 1 blockchain tokens (ETH, SOL etc.), metaverse governance tokens & reserve currencies, metaverse NFTs (in-game assets like spaceships and land) and NFT collectables. An annual 2% management fee and 20% performance fee will be enacted annually.
- 2% management will be used to fund operations for the operating entity (Atlessio Family gaming guild)
- 20% performance fee will be used to reward strong portfolio management
A claw-back provision will allow the Mob Machina DAO to claw back any performance fees paid during the investment period to equal the original percentage agreement if subsequent losses occur.
A high-water mark notes the highest value that the Yield Pool has ever reached. The high-water mark mechanism means that the operator (Atlessio Family) will only be paid fees if the Yield Pool value exceeds this level.
Upon completion of all 5 batches of minting, we will institute the beginning phases of the Mob Machina DAO. The DAO will consist of NFT holders and elected board members. All NFT holders will have 1 vote per NFT that they hold. Board members will have the ability to create and initiate proposals for the DAO. These proposals will include things such as: Additional board member promotions, choosing an operating entity of the Yield Pool (The Mob Machina NFT community could vote to separate from the Atlessio Family gamers guild as the Yield Pool operator), airdrops, rewards, and use of funds.
The main proposals instituted will include how to reward holders. The community will be able to vote on individual strategies or a combination of all.
A voted on % of quarterly profits will be airdropped and evenly distributed to all NFT holders.
A fixed percentage of profits from the yield pool will be used to sweep the floor and burn listed Mechs.
The Buy-Back Burn program introduces a claim to (1 NFT) / (Total Supply of NFTs) of assets in the yield pool.
A wallet based vesting schedule verified by on chain activity of each particular NFT will be used to combat dumping and liquidation of the yield pool as follows:
1 month: 2% of 1/total supply 3 months: 6.25% of 1/total supply 6 months: 12.5% of 1/total supply 1 year: 25% of 1/total supply 4 years: 100% of 1/total supply
Example (hypothetical): Bob owns 1 NFT and has held it in his wallet for 4 years without moving it. The yield pools total value is $10MM. Bob elects to participate in the Buy-Back Burn program. Since he is the first person to elect to participate he will receive 1/10,000 * $10MM = $1000 and his NFT will be burned.