[DAO:eb467e7] NFT Lands delegation in the WakeUp dApp (+ Decentraland DAO earns royalty fees)

by 0x9dfa9dfd15d2b2fa9717b4fc545c2bb35a29215c

Should the following Tier 3: up to $5,000 USD in MANA, 3 months vesting (1 month cliff) grant in the Platform Contributor category be approved?

Abstract

WakeUp Labs’ objective is to lower barriers to accessing the web3 ecosystem, especially working in the NFT and metaverse space, helping both projects and end users.
We’re developing on-chain seamless NFT delegation solutions where NFTs never leave the owner’s wallet.
We’re also partnering with NFT protocols so they can integrate our Delegation solution, an on-chain native delegation mechanism.
NFT owners can delegate or lend NFTs for a specific period to another account without risking losing the token, as it will never leave the wallet. New features are fully backwards compatible with existing standards fostering composability & interoperability.
We request this grant to cover the development of adding Decentraland’s Lands to our platform.

Grant size

5,000 USD

Beneficiary address

0x74B5ac5D6d03d3C10B823a955A1B3E127DE5aEE5

Email address

hello@wakeuplabs.io

Description

WakeUp has developed a protocol for NFT delegation.

You can play with the MVP here: https://p2p-rental-front-7i2b8rr2i-wakeupdao.vercel.app/

And here’s our NFT Delegation Protocol One-Pager: Wake Up Labs

Decentraland is the biggest and most decentralized metaverse today with a huge community behind.

We want to add value, allowing LAND owners the possibility to earn a new revenue stream by renting their land while lowering the barrier for new people who want to interact, try and use a Decentraland Land Plot.

[What does “NFT Delegation” mean? Precisely that: people will be able to assign temporary rights for their NFTs to be used by other people who do not own the NFT.]

Interesting is that not only delegations but also rentals will be allowed. A Small Fee will be distributed to the Decentraland DAO in the rental process.

So, every paid rent will become a new revenue for the entire DAO.

The % will be between 0.1-5% of the total amount paid to the renter.

—---------

Why does native on-chain delegation matter?
Decentraland’s roots are decentralized and fully on-chain.
In a decentralized, open and programmable database, such as a blockchain, it is essential to know if the one who interacts is the owner of the NFT or the User.
On-Chain delegation is like sharing; there is someone who owns the NFT, but they can share it with a friend or coworker, among others; thus reducing the barriers for new users.
Finally, you can delegate an NFT through the back-end, but WakeUp Labs also provides a front-end to help users to delegate and rent more simply.

The Issue for Decentraland LAND holders:
With the boom and the hype of last year in Decentraland, lands were auctioned, and now if someone wants to join Decentraland by owning land, it isn’t very easy.
Also, the virtual world is only as valuable as the experiences and content that may exist there. And with many lands for speculation, the possibilities of having new content and experiences in the metaverse are reduced.
We know that many lands are without any use; this causes the land supply to shrink and reduces the chance of more builders. What happens if someone holds more than one land plot but wants only to use one? What can they do with the rest of the plots?
If landowners want to keep lands simply because they’re interested in the project or perhaps because they haven’t yet assigned them a specific use, they wouldn’t be generating new income or new users.

Wake Up solution:
Allow Rent and On-Chain Delegation to Decentraland Lands through a simple interface.
Once the NFT has been delegated, the now “delegate” will be able to access all its benefits (for instance, holding an event or an art exhibition) but will not have the right to transfer it. The NFT will always be in the owner’s wallet.
Lenders cannot only list a Decentraland land in a rental marketplace but also generate a magical link for a particular renter. Also, they can delegate it to a friend for free.

This NFT delegation mechanism will open a whole new world of opportunities/functionalities for NFT projects and holders.

Specification

There are some important features to mention:

-The NFT never leaves the owner’s wallet, → reduces the risk of losing an NFT.

-The NFT owner can decide to whom they will assign the delegation.

-It all occurs on-chain, in a trustless and decentralized way (no need for extra intermediaries nor centralized systems)

-A fee % goes to the Decentraland DAO.

It’s just the beginning; this could be the first feature to implement with Decentraland. Delegable Wearables could be the next. These delegable/rentable wearables could allow owners and users to go to a special place uniquely for them

To make this happen, from WakeUp Labs, we will create the necessary smart contracts and APIs for the proper Decentraland integration to our platform and enable NFT delegation/renting for Decentraland LANDs.

After this stage, our next move is to create a permissionless rental dapp, so Decentraland (and any other project) can easily add these new revenue streams (earning royalties fees every time an NFT is rented).

Personnel

Founders Team:
Milton Berman is an Informatics Engineer graduate. He has been leading software product teams for the past 15 years and has worked in the blockchain industry for the past five years. He’s passionate about web3, blockchain and decentralization technologies.
Profile: https://www.linkedin.com/in/miltonberman/

Gonzalo Silman is an Economist. Tokenomics and NFT expert. He has created a crypto-gaming community that helped people earn their first tokens through gaming.
Profile: https://www.linkedin.com/in/gonzalo-silman/

Maximiliano Del Hoyo has been leading blockchain business development & partnerships teams for the past five years. He has also built tech startups, crypto dApps, and worked for corporations as a business strategist.
Profile: https://www.linkedin.com/in/0xmdh/

Dev Team:
Christian Escalante is a Solidity & full stack developer. He has been developing software for the past 16 years, and has been dedicated to the blockchain industry for the past two years.
Github: chescalante (Christian Escalante) · GitHub

Emiliano Miglioratta is a full-stack developer. He has been developing software for the past six years, focusing primarily on Node and React. Since 2022 he has been fully dedicated to the blockchain industry. Recently participated in the EthCC hackathon in Paris.
Github: migglio (Emiliano Migliorata) · GitHub

Growth Team:

Agustín Do Rego: https://www.linkedin.com/in/agustindorego/

Jess Fogel: https://www.linkedin.com/in/0xjess/

Roadmap and milestones

Products:

  •     LAND Rental Smart Contract
    
  •     LAND Rental dapp to interact with the Smart Contract.
    

Time:
3 weeks for the integration

Milestones:

Stage 1 - Smart contract deployed on testnet (Week 1)
Integrate WakeUp Labs’ smart contracts into Ethereum testnet network. This will allow us to test the smart contracts’ behaviour on land delegations’ core functionalities: trustless LAND lending and renting.

Stage 2 - Dapp integrated to a smart contract on testnet (Week 2)
Integrate our dApp to WakeUp’s Rental smart contracts already running on testnet at this point. We will be able to test the LAND delegation/renting/lending features from an end-user perspective. Then we will be ready to deploy on Mainnet Ethereum.

Stage 3 - Final delivery in mainnet (Week 3)
With the smart contracts and dDapp running smoothly on the Ethereum testnet, we will be ready to deploy everything in the Mainnet Ethereum for any user to start lending and renting Decentraland’s LANDs.

Possible future steps:
1-Allow current and old wearables delegation and renting.
2-Replace the 721 for 4907 standard in Wearable.
3-Allow native renting mechanisms on the DCL marketplace.

We believe that Decentraland is and will continue to be the spearhead in the NFT and Metaverse space, so adding extra features to NFTs like lending/renting or delegating them will enrich the community and allow more users.

Know more about WakeUp Labs here: WakeUp Labs | Twitter, YouTube | Linktree

Vote on this proposal on the Decentraland DAO

View this proposal on Snapshot

It already exists (there was several proposals and grants related to renting) and the Foundation is working on another rentals system

2 Likes

Hello, :point_up:

Voting no for now.

1 Like

Hi HPrivakos, thanks for the feedback!

In fact, front-end dapps allows you to rent. And just rent. Not to delegate (Allow a friend to use it without cost), in WakeUp Labs dapp you can! :slight_smile:

Building both, on-chain delegation or renting/lending mechanism is hard, and you need to make focus on that.
WakeUp Labs builds Infra (AKA Back-End for projects) with focus in a particular use case On-Chain Delegation.

On one hand, we think that posting a proposal is a good way to improve our relation to DCL Community, and allows us to show not only how well our Delegation/Renting approach for Lands works, but also how we work.

On the other hand, the DAO, the hearth (or soul) of DCL, will earn monthly ETH from the fees taken in every LAND rent/lend.

We really want to keep building together, while the DAO earns benefits:
For Example:

  • Determine the (%) fee given to the DAO in every rent.
  • Allow wearables delegation and renting.
  • Enable automatic payment split through the smart contract, so the DAO earns fees directly in every rental.
  • Debate and propose a change of the actual NFT standard in wearables.
  • Allow native delegation and renting mechanisms directly on the DCL marketplace.
1 Like

On-chain LANDs delegation also already exist, if you go on the builder then in LANDs, you can set operators for each lands/estate, you can also set a manager who has building permission on all your lands

2 Likes

You’re right, HPrivakos, but does this lands delegation include a % of a rental that goes to the DAO? What we want to integrate is the opportunity for the DAO to generate a passive income while also the chance to enable new users by renting lands.

We don’t need another LAND rental system but I could see wearables delegation and renting being useful. Could you start with wearables instead of LAND?

1 Like

No as the delegation itself is free.
If your system as a fee and the native system doesn’t, people will prefer the one without fee, even if that fee goes to the DAO.

What’s the maximum percentage of fee you engage to take and how much percentage do you engage sending to the DAO? That’s values that needs to be determined now, not once you are already funded.
0.1 to 5% is quite a large difference and you are not talking of how much you will take on top of that or what is the distribution of that 0.1 to 5%.

Will the project be open source?

1 Like

Thanks, Mattimus.
And yes, we’ve thought about wearable on-chain delegation and renting.
We know how to make it possible. It could be an even smoother process as wearables are being constantly minted so they could use directly the new 721 extension: ERC4907.

But for that to happen we need to get extra coordination with the Decentraland’s backend and client.
As it is another another kind of backend solution (same front), we may need additional efforts to make it possible.

Having that said, we’d like to first test this delegation and renting mechanism with Lands since it can give us the chance to consolidate the mechanism on Decentraland.
And then move on with the wearables, of course. It would be an honor for us.

1 Like

Hi HPrivakos, exactly delegations are free; we agree on that. To make it clear, renting is the feature that contains itself the fee; meanwhile, delegations are for free. Since rentals are “liquid” (they have liquidity), there’s a % of the total rental payment that you can distribute as convenient, in this specific case, to the DAO. Nowadays, there aren’t many rental mechanisms so that you can start with a high fee, and then, if you are under other circumstances where there’s a competitor, you can quickly lower it. Meaning at the beginning, we would like the DAO to receive a good percentage, around 5%. (Also, fees are there to stimulate land owners to delegate their lands).

On the other hand, the smart contract will be public since you need to verify it on Etherscan.

1 Like

NFT Lands delegation in the WakeUp dApp (+ Decentraland DAO earns royalty fees)

This proposal is now in status: REJECTED.

Voting Results:

  • Yes 5% 114,557 VP (19 votes)
  • No 95% 1,836,993 VP (54 votes)