A Sudden Birth of $HDAO
4 Days & 1 Problem worth solving (w/ NFT, DAO and LOVE)
“This is just tragic and it gets worse the more you know about it.” That was the first thing he said as he sat down with Crayon.Finance team on the Sunday afternoon of January 23rd.
There, he handed us a newspaper that reads like the following.
“It’s a first in South Korea. Highly impacted by the pandemic, the Kansong Art Museum is selling certain works at auction in order to survive. A practice that is highly controversial in the Asian country, as well as elsewhere. We take a closer look. An indispensable decision, and a hard one to make, for the future of Kansong.” The Kansong Art and Culture Foundation justified the sale at K Auction, on January 27, of several historical sculptures from the collection of the Kansong Art Museum in Seoul in these terms — The Art Newspaper”
“I want to do something about it, but there is so much I can do about it as an individual. So, I came here. Is there anything we can do about this?”.
We are entrepreneurs. We love problems. It’s in our DNA to find solutions the moment we hear the word problem.
Followings were the problems he brought up.
- Due to Covid-19, Kansong Museum is selling National Treasures on Auction in 4 days in desperate measures to recoup liquidity. God knows how long the Covid is going to stay with us and this could be repeating issues.
- If National Treasures are sold to the hand of some billionaires, you don’t know when you are gonna be able to see these pieces again in museums — and if Covid stays with us, this is going to repeat itself.
- Even when they are up for an auction, rarely you find buyers with all the duties you are abided to the very moment you buy the National Treasure (Duty of reporting and maintenance) - Not exactly like your everyday Picasso.
- National Treasure has to stay in Korea and it’s ILLEGAL to transport it outside of Korea. This could dramatically reduce the number of buyers that may want to buy up the national treasures.
- Lastly, we only have 4 days till the auction day.
It made sense for him to come see us. He knew what we were doing here at Crayon.Finance.
For those that don’t know, Crayon.Finance is a Decentralized Autonomous Organization (DAO) based Non-Fungible Token (NFT) Finance Platform that provides financial instruments for NFT holders and collectors to access more money market options such as
(i) SubDAO based collective purchase, trade, sales of NFTs,
(ii) NFT collateralized loan and
(iii) Fungible Token (FT) collateralized NFT lease/rental to create various Decentralized Finance (DeFi) strategies
It is in our future roadmap to collaborate with partners to create multiple SubDAOs to use our instruments and contracts to come up with new DeFi strategies. This is similar to what we were envisioning to do — but NOT right now at this early stage with only 4 days remaining to the auction.
However, we all agreed to join his journey. This had to be done. This is bigger than us.
Once the decision was made, the rest was simple. We came up with the following proposal to tackle the aforementioned problems.
- We form a DAO, which resembles Constitutional DAO, and raise big enough contributions to win the auctions. To save time, we use Juicebox to mint $HDAO token to contributors and Snapshot for $HDAO holders to propose and vote.
- If we ever win the auction, we have the Kansong Art Museum or National Art Museum of Korea to have the physical National Treasures under their custody.
- We mint NFTS over the ownership of the National Treasures and fractionalize and sell 49% to the open market while keeping the 51% and collateralize that on the Crayon.Finance to recoup liquidity and run DeFi strategies per DAO’s proposals.
- Returns we split per contribution rate, and potentially donate to custodians and/or government if DAO is willing.
- We need to raise about $10M USD worth of funds to securely win the auctions for 2 National Treasures.
What if we don’t raise enough funds in the due time? If that’s the case, we try to buy it back from the auction winner as soon as the enough fund is raised in a later date — but this later date shouldn’t be any later than a week (Since ConstitutionDAO raised the mandated fund in a week — it’s a good reference to set as a deadline). If we can’t raise enough funds in a week — we just let everyone redeem their $HDAO back to $ETH.
That was the high-level plan of what we were going to do in 4 days — a new landing page, social channels, articles, instructions, marketing, fundraise and most importantly — win the auction.
Please stay tuned to follow up on our journey.