This proposal was prepared by the Decentraland DAO Facilitation team, in collaboration with the Wearables VP Working Group.
This is a binding governance proposal calling for the attachment of voting power (VP) to the original six (OG6) official Decentraland Layer One (L1) wearable collections, released in 2019. This includes the following collections: 1) Community Contest; 2) DCL Launch; 3) Exclusive Masks; 4) Halloween 2019; 5) MCH Collection; and 6) Xmas 2019.
The hope is that this solution meets the demands of wearable stakeholders, and is both accepted by other stakeholders and viewed as technically feasible due to its limited application to only the six (6) first and official Decentraland wearables collections.
The question of attaching Voting Power (VP) to wearables is an important issue to members of the Decentraland community. To date, there have been at least four (4) proposals surrounding this topic. All of those that passed were approved before the introduction of the three-stage binding governance proposal process. These include the following two proposals below:
On June 14, 2022, a non-binding poll to “Get voting power for your current L1 wearables and strengthen the wider community DAO participation” passed with 1,442,355 VP (76%/52 votes) in favor; 437,946 VP (24%/10 votes) against. This poll established initial community support for attaching VP to L1 wearables, without detailing specific implementation pathways or a detailed impact assessment. It additionally called for a subsequent proposal to determine a tiered VP allocation system based on the rarity category of items.
On June 26, 2022, a subsequent non-binding poll for “L1 Ethereum Wearables Voting Power Allocation Proposal” passed, with 2,920,657 VP (96%/55 votes) in favor; 146,49 VP (4%/9 votes) against. This poll did not contain any specific information on implementation pathways or impact assessment, however, it built on the previous poll, calling for distribution of VP to L1 wearables based on rarity level along the following parameters:
**Mythic:** 1000 VP **Legendary:** 100 VP **Epic:** 10 VP **Rare:** 5 VP **Uncommon:** 1 VP
The argument against attaching VP to L1 wearables has been primarily technical, with both the DAO Committee and other knowledgeable community members pointing to three primary challenges: First, the broad technical scale of attaching VP to wearables that are distributed across X# collections, all of which are held on separate contracts. Second, is the arbitrary distinction between L1 and L2 wearables, particularly given future conflicts that could arise due to emerging technologies that reduce L1 transaction fees (i.e. zK roll-ups and sidechains) or enable easy bridging of assets between L1 and L2. Third, is the fact that L1 wearables outside of the collections officially sold by DCL involved p2p transactions in which no MANA was burned from the ecosystem, and would effectively be creating double VP for these transactions.
This proposal aims to account for all of these critiques. After conducting an in depth analysis of L1 wearables, total/active voting power, and other VP-allocating assets - including LAND, MANA and Names - we have determined that while a blanket application of VP to all L1 wearables is impractical and difficult to justify, limiting the application to the OG6 official collections is justifiable quantitatively - accounting for nearly 70% of all L1 wearables; technically - being limited to only six (6) wearable collections; and qualitatively - linking VP to official DCL collections, with the amount of VP reasonably comparable to the amount of MANA spent/burned to purchase the one OG collection (Halloween 2019) that was officially sold (rather than given away) to the community.
This proposal seeks to resolve the issue of wearables VP, which has been a point of contention since passage of the first non-binding poll in June 2022. It aims to provide an implementation pathway that distributes wearable VP in as equitable a way as possible, while mitigating technical blockers. It further fulfills a demand that was made by the community with a relatively strong level of support, equating to nearly 20% of historical VP, however, was not enacted by the DAO committee because there was no clear implementation pathway.
While there was no initial promise of VP with purchase of early L1 wearables, assets from the Halloween 2019 collection remain the only officially-sponsored asset in which MANA was spent by community members, burned by the Foundation, and is not associated with any form of VP. The problem with some past solutions proposed by wearable stakeholders to attach VP to ALL L1 wearables is that, a) it is incredibly arduous to implement, particularly when considering distributing VP by rarity of each collection; b) it is somewhat arbitrary in that there is no precedent for such a VP-generating act; and c) In the majority of cases it would in fact be creating double VP in that wearables were purchased in a p2p transaction in which no MANA was burned, so the seller would have received MANA equating to VP and the buyer a wearable equating to VP. As a result of the above, an all encompassing L1 solution is technically impractical and both quantitatively and qualitatively difficult to justify.
The Halloween 2019 collection, however, was the first wearable collection after the Exclusive Masks beta, and the only collection partially sold by the Decentraland Foundation, raising 1,077,320 MANA in sales. Although subsequent collections in the 2019 wearable offerings were distributed for free or as a reward, this spent MANA, which was removed from the ecosystem, has not received any democratic utility. By attaching VP to these “initial offering” wearable collections (and only to these initial six), which are the foundation of the robust wearables market we see today, this proposal aims to assert wearables as an essential asset class - similar to MANA, LAND, and Names.
Attach voting power, distributed by rarity to the six (6) official Decentraland wearable collections released in 2019. This includes:
- Community Contest
- DCL Launch
- Exclusive Masks
- Halloween 2019
- MCH Collection
- Xmas 2019.
- There are 48,620 total wearables in these six collections, spread across 7,583 wallets. This equates to nearly 70% of the 71,082 total L1 wearables, which are spread across 10,442 unique wallets.
VP will be distributed according to rarity as follows:
Mythic: 1000 VP
Legendary: 100 VP
Epic: 10 VP
Rare: 5 VP
Uncommon: 1 VP
There are 644 mythics across 189 unique wallets; 4,249 Legendary across 827 unique wallets; 17,382 Epic across 4,820 unique wallets; and 24,713 rares across 4,126 unique wallets.
In total this will create 1,796,691 VP. This equates to less than 10% of the historically active VP in the DAO, and is less than 2x the amount of MANA spent (and burned) by community members to purchase Halloween 2019 wearables from the Decentraland Foundation.
The underlying philosophy behind this proposal is that creating new VP and expanding participation in the DAO is inherently positive! Empowering various stakeholder groups makes our overall system more robust, and if anything, voter apathy is more of a risk than interest group consolidation of power - which this proposed pathway also mitigates by limited the amount of VP that is being created as part of this process
[Waiting on Final Feedback]
These six (6) original wearable collections from 2019 are the final group of initial offering assets that have no associated VP. Other assets in this category include MANA, LAND and Names. What unites these assets are the fact that they are tied to either the core Decentraland smart contracts, or were linked to a foundation-led asset sale in which MANA was burned or the assets were distributed freely to early project adopters.
Voting in favor of this proposal is meant to put a close to the question of creating additional voting power assets in the future. This final section of the proposal should be referred to if there are further attempts to use past precedent as an argue for extending VP to additional asset sets or categories.