by 0x87956abc4078a0cc3b89b419928b857b8af826ed (Nacho)
The DAO will subside polygon transactions for Decentraland users
The DAO will fund the Gas tank for Polygon meta transactions in order to keep a better UX and lowers the barrier of entry for publishing, listing, bidding, and buying wearables in exchange for MANA between others.
This is a follow-up from this past proposal, where a Grant was given by the DAO to keep Polygon transactions in Decentraland free for all its users. Free transactions mean that the Decentraland users do not have to pay gas for each meta-transaction (in Polygon) they perform while using the product. This leads to a better UX and lowers the barrier of entry since we subsidize the costs and reduce the number of interactions with the wallet for day-to-day activities such as listing and buying wearables, placing bids and accepting them, publishing wearables, etcetera.
The way Biconomy works is by providing us with a personalized gas tank that we need to fill to cover the cost of the meta-transactions.
Up until now, the gas tank was filled with funds coming from different Grants asked from the community and provided by the DAO. This time, the proposal is to establish an ongoing mechanism to maintain the gas tank full over time. As the community is growing and more transactions are taking place, it’s important to keep it full in favor of the whole community and for the sake of Decentraland’s growth.
It’s important to consider that there is an economically sustainable model behind this proposal, the fees extracted from transactions in the Marketplace, Builder, and other dApps are the second most important source of income for the DAO. The numbers are public and can be seen in the Income dashboard on the Transparency section in the DAO Governance dApp.
The Decentraland Marketplace generates around USD 250,000 per month in profits, this income would cover the cost of the meta-transactions and the flywheel could keep spinning: better UX > > more transactions > more income for the DAO. If the DAO stops covering the costs of the meta-transactions, then users will need to pay for them to perform almost any action in the dApps, this would discourage people from uploading wearables, bidding, and making transactions in the marketplace. In the end, it would result in less income for the DAO that could be redistributed in the form of Grants and a worse user experience for the Decentraland community.
Note that to avoid potential attacks or abuse situations where the gas tank could be emptied, claiming/buying wearables for free or less than 1 MANA is not going to be covered by the meta-transactions model.
This will impact the whole Decentraland users
The DAO will need to fund the Biconomy Gas Tank
If this proposal closes and the result is “YES”, the DAO Committee will be in charge of swapping Mana for Matic to fill the gas tank in the Biconomy platform, making sure it has always enough Matic to support free meta-transactions in Decentraland.