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· 4 min read
Matthew
Brileigh

Building a network of projects on Juicebox

StudioDAO is a decentralized movie studio running on Juicebox. To learn more about how StudioDAO is disrupting the traditional film financing model, check out this deep dive on the JB blog as well as episode 9 of the Juicecast with founder Kenny on Spotify and Apple Podcasts.

In this article, we’ll cover how StudioDAO has created a network to fund multiple film projects with a 10% fee going back to an umbrella project, StudioDAO Backlot. Unlike traditional businesses where money moves with little oversight, when you purchase an NFT to support one of StudioDAO’s projects on Juicebox you can see exactly where funds are being distributed.

Please note that all projects mentioned in this article are currently running on Rinkeby testnet before going live on mainnet and therefore configuration settings are not final.

StudioDAO projects live on Rinkeby 🎥

  • StudioDAO Backlot: registered LLC that provides film production services to StudioDAO and takes a 10% transaction fee on all StudioDAO project NFTs sold through Juicebox
  • Unlikely Love Stories: StudioDAO’s first project, a dark comedy anthology by Rosa Tran and Derek Smith
  • Colossi Research Academy: test project with art by Michael French
  • Dickson Greeting: test project, experimental historical short film

StudioDAO Project Map

StudioDAO sub-project map

Case Study: Unlikely Love Stories ❣️

StudioDAO’s first film fundraise is Unlikely Love Stories, a dark comedy anthology by Rosa Tran and Derek Smith that explores finding unexpected love in the most unexpected places. In the screenshot below, you can see that ~ 13 ETH has gone into the treasury, and 10% of those funds will be distributed to “Project 4630” also known as StudioDAO Backlot, the Juicebox project that supports all StudioDAO films through production-related services. The other 90% is distributed to the filmmakers (unlikelylovestories.eth) along with the Backlot tokens minted from the 10% payout.

StudioDAO Funding Distribution

Funding distribution for Unlikely Love Stories on Rinkeby

Understanding the project’s configuration settings 🔎

Digging further into the project’s config, we can see that the following choices were made:

  • With automated funding cycles disabled, funds can be withdrawn at any time. For the project creator this is a very flexible approach but it also presents risks for project contributors.
  • Similarly, an infinite distribution limit was set meaning that the project can distribute freely from its treasury, as much or as little as it likes. Again, this is a very flexible strategy but also means that the entire treasury can be distributed without any limits.
  • Discount Rate is set to 0% which means that token issuance will stay the same over time. In other words, there is no added incentive for early contributors.
  • Redemption Rate is set to 100% which means that they can be redeemed against the overflow of the treasury at any time. In other words, there is no added value for redeeming earlier vs. later.
  • Mint Rate is 840,000 tokens per 1 ETH, with half for project contributors (420,000) and half for addresses on the reserved token list (420,000) 🚬
  • Owner token minting is disabled, so the project owners cannot mint tokens at any time. Only project contributions will mint new tokens.
  • No reconfiguration strategy was set, meaning that a project can be reconfigured at any time without notifying contributors. Again, this is a very flexible approach for project creators but carries risk for project contributors.

StudioDAO Funding cycle configuration

Funding cycle configuration for Unlikely Love Stories on Rinkeby

Reserved token allocation 🪙

We can also take a look at how the Reserved Tokens are split:

  • 50% to filmmakers of the project
  • 40% to StudioDAO Community wallet
  • 10% to StudioDAO Backlot

This cross-pollination of tokens allows each member of the StudioDAO ecosystem to have a stake in one another, creating incentive alignment and building community in the process.

StudioDAO Reserved Token Allocation

Reserved token allocation for Unlikely Love Stories on Rinkeby

As mentioned earlier, all projects discussed in this article are still on Rinkeby testnet and their configuration settings are not final. Once StudioDAO and NFT Rewards are live on mainnet, we’ll update this article with the final configuration details. Stay tuned!

Coming soon to a mainnet near you.

That's all folks!

🎙️ Listen to Kenny tell the story of StudioDAO on episode 9 of the Juicecast on Spotify and Apple Podcasts

🟢 Follow StudioDAO on Twitter: @studioDao

💬 Join StudioDAO’s Discord: https://discord.com/invite/YxPGn9pcdr

🐦 Follow Juicebox on Twitter: @JuiceboxETH

🚀 Trending projects on Juicebox

📚 Project Creator Docs

📹 YouTube Tutorials

· 6 min read
Matthew
Brileigh

How StudioDAO is building the first million person green-light committee on Juicebox.

🥱 Prequels, sequels, reboots

If you’ve streamed movies recently, you might have noticed that everything is starting to become homogenized. Superhero mix and match, cinderella with the latest celebrity, maybe an apocalypse or two. It’s becoming increasingly clear that we are no longer paving new roads but rather returning to the same old well-trodden paths. The traditional studio model behind film production is, at least, partly to blame for this. And StudioDAO is trying to fix it.

These constant reboots are often favoured over new ideas that seem like too much of a risk to investors. And to make matters worse, the filmmakers don’t reap nearly as much profits as the financiers. Here is how films are funded in the traditional studio model:

  • Filmmakers create a budget and pitch their film to financiers
  • Financiers provide funding, get repaid once the film is made, and get an extra 20-30% of the films profit
  • Financiers then receive ~ 50% of all revenue going forward and the filmmakers the other 50%

Other than the exorbitant take rates (50%? hmmm…), the problem is that financiers are assuming the risk of the success of the film. In other words, they are not incentivized to invest in new films without a proven track record and are much more amenable to franchises with successful past releases. This has lead to the franchise overload that we are currently experiencing where every movie in theaters or on streaming platforms seems to be a prequel, sequel, or reboot.

🟢 Enter StudioDAO, stage left

StudioDAO

Rather than relying on a centralized financier, StudioDAO is a decentralized movie studio working to become the first million person committee of fans green-lighting movies. By combining the power of collective action with NFT sales to fund films, anyone can participate regardless if they have 0.01, 0.1, or 1 ETH to contribute. For the first time ever the audience will have the opportunity to decide which films they want to fund and watch, all while building community and gaining behind-the-scenes access in the process.

Our goal is to have a million people come together to fund a movie for the price of a movie ticket

— Kenny

💸 StudioDAO’s hybrid funding model

While the idea behind StudioDAO is simple—fans coming together to fund films—their innovative funding model is complex, so let’s break it down. StudioDAO has three methods for funding films:

1) Retail NFTs

Using Juicebox’s new NFT rewards feature (coming soon to a mainnet near you), anyone can support projects at three different price points: 0.01, 0.1, and 1 ETH. These NFTs help fund the film’s production budget and are also collectibles that grant governance rights to the StudioDAO community wallet.

2) Community wallet

The StudioDAO treasury receives 30% of profits from projects. This community wallet is controlled by members of the DAO and can help fill in the gaps for films in the StudioDAO network that are raising funds for production. This process democratizes the experience of movie production by allowing DAO members to vote on which films should receive treasury funds.

3) Film financing fund

Last but not least, this method opens the door to the traditional financing world outside of NFTs and the crypto community. This fund requires investors to KYC and work together with the StudioDAO community to reach an agreement.

🎬 How does this work for filmmakers?

  • Filmmakers receive 70% of all profits made from their films;
  • Retain ownership of their film;
  • Control the distribution of their film

A DAO member will act as a filmmaker’s representative, make a pitch to the DAO on their behalf, and seek approval via governance. All DAO members are able to create and vote on proposals, allowing the community to curate content and vote on which films they want to see come to life. Once the vote gets approved, the DAO opens a new Juicebox project with three funding tiers and fundraising begins.

Unlikely Love Stories

❤️ StudioDAO’s first project: Unlikely Love Stories

Unlikely Love Stories is a dark comedy animated anthology that explores the highest highs and lowest lows of unexpected love in the most unexpected places. The anthology is inspired by the real life love story of Oscar-nominated producer Rosa Tran (Anomalisa, Robot Chicken) and Emmy-winning VFX artist Derek Smith who met at the 2010 Emmy awards and fell in love 7 dates later. Part 1: Tender Vittles tells a hilarious, slightly fucked up story about love when a sweet mouse falls in love with a dangerous yet delicious gingerbread cookie.

The first goal for Unlikely Love Stories is to raise $305,000 USD for the pilot episode Tender Vittles. To continue the anthology, the project will be aiming to raise $2,000,000 USD to produce a half season and $5,000,000 USD to fund the entire season. 90% of proceeds go towards funding the project and 10% goes to the StudioDAO community fund governed by DAO members.

Unlikely Love Stories NFT reward tiers

🧃 A transparent way forward

The idea of crowdfunding films isn’t new: Kickstarter has helped raise $500M USD for films over the last ten years, including 5.7 million for Veronica Mars in 2019. Fast forward to 2022, crowdfunding on Ethereum has opened up new ways for fans around the world to support films, like filmmaker Miguel Faus who crowdfunded his film Calladita with tiered NFTs. Going one step further than a one-time fundraise, StudioDAO is building a regenerative model in which project creators get to make their dream projects while fans get unprecedented access to the green-lighting process. And all of this magic happens transparently and out in the open on Juicebox.

There is a two trillion dollar entertainment market and there is a clear scenario for a decentralized studio to do one billion dollars of production 3-4 years from now.

— Kenny

🎙️ Listen to Kenny tell the story of StudioDAO on episode 9 of the Juicecast on Spotify and Apple Podcasts

🟢 Follow StudioDAO on Twitter: @studioDao

💬 Join StudioDAO’s Discord: https://discord.com/invite/YxPGn9pcdr

🐦 Follow Juicebox on Twitter: @JuiceboxETH

🚀 Trending projects on Juicebox

📚 Project Creator Docs

📹 YouTube Tutorials

· 9 min read
Matthew
Brileigh

One Noun, every day, forever.

A series of Nouns generated in the Playground

A series of Nouns generated in the Playground at nouns.wtf/playground

WTF are Nouns?

Nouns is an on-chain generative NFT project and experiment in community building through avatars. Nouns are 32x32 pixel characters with heads that represent a noun like “igloo,” “skateboard,” or “peanut.” One Noun is auctioned every twenty-four hours, forever, with all proceeds going to the Nouns treasury. When one auction is settled, the next Noun is generated and a new auction begins. Each Noun is entitled to one vote in Nouns DAO governance which decides how the treasury should be used.

Auction bids for Nouns can easily reach over 100 ETH. As a result, owning a Noun is often limited to those that can afford to win these competitive auctions… unless you’re a member of SharkDAO ⌐◨-◨

SharkDAO, a shiver of Nouns enthusiasts 🦈

Did you know that a group of sharks is called a shiver? SharkDAO brings together Nouns enthusiasts with the shared goal of acquiring Nouns and contributing to the Nouns ecosystem. Together they pool funds, participate in Nouns DAO governance, and partner with artists, developers, and DAOs to create Nounish experiences. This has taken the form of podcasts, NFT collaborations, and Nouns DAO proposals like e-sports initiatives and CC0 Story Bibles.

They currently hold six Nouns: 2, 5, 15, 33, 47, and 139 which have been named by the Shark community as follows:

🍍 Noun 2: Piña, named after its pineapple head

🪚 Noun 5: Bruce, a reference to actor Bruce Campbell who wields a chainsaw in the movie The Evil Dead

💊 Noun 15: Morpheus, based on Laurence Fishburne’s character from The Matrix

🐸 Noun 33: Froger, named after its frog head

🦈 Noun 47: Swimshady, the cool alter ego of the Shark Noun

🔒 Noun 139: Paddy, named after its padlock-shaped head

Left to right: Nouns 15, 2, 33, 47, 5 and 139

Left to right: Nouns 15, 2, 33, 47, 5 and 139

Building the plane while you fly it

As an experiment in on-chain avatar communities, Nouns DAO’s mission is to spread the Nounish word with the help of Nouns holders who make up the voting body of the DAO.

While projects such as CryptoPunks have attempted to bootstrap digital community and identity, Nouns attempt to bootstrap identity, community, governance, and a treasury that can be used by the community for the creation of long-term value.

Punk 4156

Holding only 6/300+ votes might not seem like much, but lurking beneath the waters SharkDAO is active in discussions, pushing ideas through the ecosystem, and able to get a lot more done than what their voting power implies. Since Nouns has no roadmap from the Nounders (founders), Nouns is community-owned which gives power to holders to propose initiatives and decide how to use treasury funds. In other words, the task of building community and shaping the future of Nouns belongs to community members who hold Nouns, rather than the founders. SharkDAO, as one of only a handful of sub-DAOs within Nouns DAO, is one of the groups building this roadmap on-the-fly.

“In short, sub-DAOs participation in a DAO is shaping and contributing a voice to that community so that the best ideas get surfaced, voted on, and make an impact in the world.”

Dropnerd

SharkDAO and NounsDAO infographic from sharsk.wtf

SharkDAO and NounsDAO visualization from sharks.wtf

SharkDAO, the meme that jumped from Rinkeby to mainnet

It all started with a small group of frens helping Nouns DAO test out their auction mechanism before it went live. Goldy, 4156, Dropnerd, Lithium, Kenbot, Del Piero and Defi Jesus were a few of these early swimmers. The Shark Noun was one of the first Nouns that was acquired on testnet by the group and they decided to build around that Shark identity. They launched a Discord, started bringing in contributors, and began planning how they were going to crowdfund to buy Nouns.

A tweet by 4156 after the Rinkeby shark was acquired

4156 announcing that the Rinkeby shark was acquired (tweet)

SharkDAO is a meme that jumped from Rinkeby to mainnet.”

Kenbot in a Twitter Space hosted by nnnnicholas

When it came to figuring out how to fundraise in order to bid on the first Noun, Kenny dives into the Discord and suggests a cool project he heard of called Juicebox. Building a treasury on Juicebox would allow the group to trustlessly raise funds and manage their treasury, without the risks of YOLO’ing ETH into a multi-sig.

SharkDAO project page on Juicebox

SharkDAO project page on Juicebox

From there, SharkDAO set up a Juicebox project on Rinkeby. Dropnerd was doing the testing and was still new to signing transactions. “I was very excited to see everything come together so easily without needing to interact with a bunch of smart contracts directly,” he explained. “The UI showed me exactly what was going on which made it a lot easier for the DAO. Looking back I can’t think of another platform where we could have raised 200+ ETH in the first few days without the help of Juicebox.

SharkDAO catching the Shark Noun 🎣

Noun #47: The Shark Noun.

Noun 47, the Shark Noun

Although new Nouns may seem random and impossible to predict, their traits are actually determined by the previous blockhash. And if you’re particularly clever, you can use the crystal ball to predict and even choose the next Noun that will be generated 🔮

Before the Shark Noun was generated, founding member Goldy was eyeing the Noun Crystal Ball every day for weeks. This magical tool shows you what the next Noun will look like if the auction is settled on the current block by calling the settleCurentAndCreateNewAuction() function in the NounsAuctionHouse contract.

Usually the winning bidder will settle the auction, but anyone can call settleCurentAndCreateNewAuction() at a particular block and help decide what the next Noun will look like. In a glimpse of a moment, Goldy saw the Shark Noun in the Crystal Ball and submitted the transaction before the next block to secure it.

The Noun Crystal Ball 🔮

The Noun Crystal Ball 🔮

SharkDAO had to act fast if they wanted the Shark Noun. The DAO established an auction committee, re-opened their Juicebox project, and expanded their multi-sig to include 5 members. Within the first few days of re-opening for contributions, they received over Ξ150 from community members.

Where there’s a will, there’s a wave 🌊

The team suspected that someone was watching within the DAO and took their calls offline to discuss the details of their strategy in real time, including their final bid number. It wasn’t an easy auction to win though: the Shark Noun was desired by many and led to a jawesome bidding war. Over the next 24 hours the bidding quickly went past Ξ100 and then Ξ200 soon after. It became clear that the price of Noun 47 was going to swim past most Nouns auctions, apart from the very first Noun that sold for Ξ600. After their penultimate bid of Ξ244.82, SharkDAO was getting pretty close to exhausting the amount that they set aside for the auction. Though winning Noun #47 was non-negotiable, they also needed to conserve enough treasury funds to ensure that the DAO could continue to build into the future.

Timeline of some of the final bids on the auction for Noun 47.

Timeline of some of the final bids on the auction for Noun 47.

If a bid is placed in the last five minutes of an auction, the timer is extended by another five minutes. Due to the cumbersome nature of bidding via a Gnosis Safe, the DAO came pretty close to losing the shark. There was even one bid where the last signer was executing the transaction with only 45 seconds left on the clock.

After a last minute bid of Ξ258.88 by 0xa8...0e7d, the team had minutes to coordinate and agree on the next bid price before multisig signers could approve the transaction. And on September 21, 2021 at 2:19am, SharkDAO won the final bid for 269.69 ETH.

Noun #47: The Shark Noun

Noun 47, the Shark Noun

SharkDAO celebrates their shark-versary

Since their launch on August 8th, 2021, SharkDAO has raised over 1000 ETH on Juicebox, acquired six Nouns, and brought together over 400 sharks. As a sub-DAO, they’ve pushed several proposals over the fin-ish line in the Nouniverse including Nouns-based short films and FOMO Nouns. SharkDAO has also helped provide eye exams and glasses to thousands of kids in need, donated 5 ETH to the Coral Restoration Foundation, and started a new Juicebox project to raise 60+ ETH for founding member Del Piero’s son’s leukemia treatment.

The Shark Noun has become an icon and remains one of the most recognizable Nouns. In a particularly surreal turn of events, Noun #47 aka Swim Shady was featured in Yuga Labs’ Otherside promo video alongside Cryptopunks, Cool Cats, CrypToadz, World of Women, and Meebits. Not only were Nouns included as one of a handful of projects to represent NFTs a whole, but the Shark Noun was chosen as its iconic ambassador.

What’s next for SharkDAO? Stay tuned for future NounsDAO proposals like the Monthly Nouns Comics project currently being developed by DefaultedUser and ComicsDAO in collaboration with SharkDAO. The Shark Island pfp project is also currently in the works as well as the DAO’s growing collection of Shark-themed art.

Shark Noun featured in Yuga Labs’ Otherside promo video

Shark Noun featured in Yuga Labs’ Otherside promo video

The value of SHARK is derived not only from its ETH stored in the Juicebox contracts, but also from the NFTs the DAO has deployed treasury funds to acquire, from the JBX that the DAO has begun accumulating by paying platform fees, and perhaps most importantly from the productive community forming within the project that gives it boundless potential moving forward.

Jango, from Juicebox V2: Protocol adjustments useful for adding treasury tokens to AMMs

Listen to Dropnerd tell the story of SharkDAO on episode 5 of The Juicecast

Follow Juicebox on Twitter: @JuiceboxETH

Follow SharkDAO on Twitter: @sharkdao

Join SharkDAO’s Discord: discord.gg/QNbuygdK3A

Set up a Juicebox project on Juicebox.money

· 7 min read
Matthew
Brileigh

How Lexicon Devils is building the metaverse, getting paid to do it, and managing their treasury on Juicebox.

Metaverse architecture and video games

I spent the majority of my childhood exploring the internet and playing classic computer games like Age of the Empires, The Secret of Monkey Island, and especially The Sims. For hours and hours I would build, design, and arrange anything I could think up. Unbound by the limits of gravity, money, or even common sense, The Sims was an excuse to imagine what was possible rather than what was realistic. At the time this maybe seemed like a silly diversion, but like many of our early internet activities this turned out to be great practice for the future that was hurdling towards us. Spending hours customizing a Myspace page was, in retrospect, a great introduction to frontend development. And perhaps The Sims was the perfect introduction to metaverse architecture.

Old Town, The Sims

Old Town in The Sims (2000)

Lexicon Devils origin story

Lexicon Devils, named after an EP by LA punk rock band Germs, is a guild of metaverse builders architecting virtual experiences in Voxels, Substrata, and beyond. They acquire parcels, design and execute complex builds, and organize interactive events including DJ sets, treasure hunts, parades, art exhibitions, and performances.

Around the time that Shark DAO was making waves, Peacenode got a call from Stav and started chatting with Nicholas and Dropnerd about this “beautiful infrastructure layer of the internet that we’re all building on Ethereum.” One thing led to another and Peacenode was soon talking with Mieos from WAGMI Studios about a cross-DAO collaboration to create a Juicebox metaverse experience and the rest is history.

I’ll never forget meeting Wacko, he was rocking the most insane wearables every 30 seconds. We just had to ask if he could join us and put him on the payroll.

— Peacenode

Rather than sending funds p2p, Peacenode explained that the Lexicon Devils project on Juicebox would issue payouts to a team of contributors on a set schedule. In other words: “I know you don’t know us, but let’s hang out.” Building in the open with a trustless, transparent treasury means easily building friendships and communities regardless of identity or credentials. Find your community, bring the good vibes.

And who knows, you might even end up making an ultra tropical banana-themed learning center complete with an animated gondolier.

The first iteration of the Juicebar and Juicebox Learning Center

The first iteration of the Juicebar and Juicebox Learning Center

A home for Banny: iterations of the Juicebox parcel in Voxels

v1 of the Juicebar was built as a home for Banny, the iconic blunt-smoking banana mascot of Juicebox. It was also home to the Juicebox Learning Center, a juicy and playful institution where visitors could watch videos about the protocol, learn terms in the glossary, and participate in ongoing JB events. This tropical parcel quickly became an oasis for long-time Banny devotees and newcomers alike to learn more about the crypto crowdfunding protocol that enables anyone to fund the “thing” of their dreams on Ethereum.

As part of the growing bannyverse, WAGMI Studios and Lexicon Devils organized the first ever JB metaverse treasure hunt with clues that make up a seed phrase… but only with the help of a decoder. Prizes included 200,000 $JBX and a treasure chest filled with dope NFTs.

The Bannyverse Treasure Hunt

The Bannyverse Treasure Hunt

Since October 2021, the Juicebox plot in Voxels has gone through many iterations as a center for learning, discovery, and entertainment. It stands out from surrounding parcels with its attention to detail and references to IRL architecture and design. Through pixelated curves and large windows blending the inside and outside, the current Juicebox v2 build combines characteristics of mid-century modern design with a tropical Banny aesthetic. Bringing this all together in one big juicy cocktail, the v2 build is a utopian dream in line with the ethos that anyone can grow and fund their dream project.

v2 of the Juicebox parcel.

v2 of the Juicebox Learning Center, Transit Center, and Juicebar

Lexicon Devils' wild and imaginative custom builds

In addition to building for Juicebox, Lexicon Devils have designed and built a custom HQ for Dreams Never Die, a web3 music DAO, and a browser-based metaverse experience for NFT project Slothtopia. Wackozacco was also commissioned to design a number of custom builds on Architect Island which draw inspiration from Neo-Andean, Oriental, Tudor, and Structural Expressionism movements.

Dreams Never Die HQ

Dreams Never Die HQ at 31 Bran Ave

Custom builds by Wackozacco

Custom builds by Wackozacco on Architect Island

left to right: 3 Schism Street, 7 Marayaco Ave, 2 Schism Street, 29 Marble Road

I never would have imagined [becoming a metaverse architect]. I was designing video game skins when I was younger, not really thinking about it. As I was growing up, I felt like I needed to do something more meaningful and then I found out that you could paid for doing stuff like this. It was a re-discovery of a passion and realizing that it can produce value.

— Wackozacco

Whether referencing the physical world or playing with what defies reality, Voxels and other metaverses allow for architects to focus on design and function rather than costs, materials, or bureaucratic mazes like zoning laws. Anyone is able to learn to build in the metaverse, regardless of their education or previous knowledge of architecture. Coming from a wide range of backgrounds, the team at Lexicon Devils has spent the last year creating metaverse experiences and custom builds for other orgs, all while managing their treasury on Juicebox.

If you had asked me in January 2020, I couldn’t have anticipated where I am today with my friends. It’s pretty amazing. Actually, when I was a kid, there was a stint where I wanted to be an architect. I was a Lincoln Log kid, so maybe it makes sense.

— Peacenode

Lincoln Logs, a popular children's toy

Lincoln Logs, a popular children’s toy invented in 1916 by John Lloyd Wright, son of well-known architect Frank Lloyd Wright.

FORMING and coming full circle with Juicebox

As the pinnacle of their monthly Juicebox event series Lexicon Devils is hosting FORMING, an experimental hyperverse concert with a curated lineup of performances by web3 musicians. Lexicon Devils has created and funded a new Juicebox project through which all participating artists will be paid in ETH. By paying musicians through the project, artists also get a chance to learn first-hand about the Juicebox protocol and how it works.

“That’s the synthesis of our experience of learning about Juicebox. It’s not just an event at JB, but an event that gets people to learn about JB through our events”.
— Wackozacco

Listen to Peacenode and Wackozacco tell the story of Lexicon Devils on episode 8 of The Juicecast

Visit the Juicebox parcel in Voxels

Visit the Lexicon Devils HQ in Voxels

Follow Juicebox on Twitter: @JuiceboxETH

Follow Lexicon Devils on Twitter: @Devils_Lexicon

Set up a Juicebox project on Juicebox.money

· 5 min read
johnnyD

In case you don’t know, Juicebox is the best way to fund and operate any Web3 business, especially NFT projects. If you’d like to know why we’d recommend reading ‘WHY Juicebox for NFT projects’ if you haven’t already done so first.

For now, we’ll be going deeper into Juicebox lore and fleshing out all the weird and wonderful options, looking at how to leverage them ideally for an NFT project. By the end of it, you’ll have set up a system where:

  1. Buyers of your NFT will automatically receive a quantifiable stake in your project’s treasury in the form of ERC20 tokens.
  2. People can invest in your project without having to own an NFT.
  3. Automate payments to your key team members and display them transparently to your community.

In this article you’ll learn:

  • How to create and configure a Juicebox project suited for an NFT collection
  • How to link royalty fees from your NFT sales to your shared Juicebox treasury

1. Create your project

https://juicebox.money/#/create or https://rinkeby.juicebox.money/#/create (testnet)

I’ll go from the Funding cycle section of our create flow and recommend some possible starting points for your NFT project.

1. Funding

Funding cycles

We highly recommend using a funding cycle. This is the time period over which distributions will be made and other Juicebox settings such as the discount rate will be applied. Common funding cycle lengths are 1 week, 2 weeks or 1 month.

Distributions

You can specify the amount you’d like to distribute to each member of your team per funding cycle from the treasury. If you don’t raise the total amount of funds you’ve planned for your whole team, then each team member will be paid the percentage you’ve specified for them from any funds you have raised. For instance, if you planned for Mike and Bob to get 1 ETH each per week, but you only raised 1 ETH total in a certain week, then they will just get 0.5 ETH each.

If you’re opting not to go for the shared treasury approach, you can route all funds from the treasury straight to the owner, or a percentage cut to any other wallet address.

Token

Reserved rate

As mentioned earlier, whenever new tokens are minted as a result of someone buying an NFT or contributing for tokens straight up, this percentage of those new tokens will be reserved and the rest will go to the buyer. By default, these tokens are reserved for the project owner, but you can also allocate portions to other wallet addresses. A reserved rate of 50% will ensure the project owners maintain a majority share of the treasury and may be a good option for your project.

Discount rate

The discount rate incentivises people to get in early on your project. It controls how the issue rate of your community ERC20 token changes over time. A higher discount rate means people who buy your NFT in the early days will receive more tokens / ETH than those who come in later. An exact figure is hard to give, but with a funding cycle length of 2 weeks, a discount rate of 10% may be a good place to start.

Redemption rate

This redemption rate encourages token holders to hodl and stick with your project token for the long term. On a lower redemption rate, redeeming a token increases the value of each remaining token, creating an incentive to hold tokens longer than other holders. Similar to the discount rate, you’ll have to gauge how aggressively you want to pull this level, but a redemption rate between 50 and 75% is probably a good place to start.

3. Rules

Pause payments

You probably don’t want to check this. Check it only if you want to hold off payments for a certain period after you create your project.

Allow token minting

You probably don’t want to check this either, it allows project owners to mint any amount of tokens to anyone on demand. Whenever you have this enabled, your project will have a warning flag on its Juicebox page warning contributors of the possibility of their tokens being diluted.

Reconfiguration

This is important. It restricts how long before the next funding cycle reconfigurations must be submitted before they are able to take effect. For example, with a 3-day delay (a good starting point), a reconfiguration to an upcoming funding cycle must be submitted at least 3 days before it starts. It’s a great way to ensure your community against any malicious owner behavior.

2. Create a payable address

This will create an Ethereum address that can be used to pay your project, rather than having to go through the Juicebox interface. It will be necessary in the model of the Juicebox NFT project we’re going for, since you will use this address as the destination for your royalty fees. You will be prompted to do this when you create your project, but can do it later at any time in the ‘Tools’ section of your project page pictured below.

3. Do your thang on Opensea, or wherever. Send royalty fees to the payable address. Let the magic happen

And that’s it! Congratulations. You’ve set up a system where buyers of your NFT will have a quantifiable stake in your project with community tokens (ERC20), and have allowed people to invest in your project without having to own an NFT.

Conclusion

We hope you’ve enjoyed digging into the details of Juicebox and how you can leverage the protocol for your NFT project. If you’re interested in having a crack at the setup described here, have a play on Rinkeby. If you’ve still got some questions, come shoot us a message in our Discord or arrange an onboarding call. As always, happy Juicing!

Disclaimer: This is not financial or legal advice. As always, speak with an expert and do your own research.

· 6 min read
johnnyD

Juicebox is an extremely flexible and powerful Web3 protocol made to fund and manage shared treasuries. It has been responsible for some of the biggest names in crypto community fundraising, including ConstitutionDAO, AssangeDAO and MoonDAO. Funding and operating an NFT project with Juicebox is an especially effective way to leverage the protocol, providing massive benefits to both owners and their communities. In this article we’ll cover why, and in a follow-up article, we’ll cover how.

In this article:

  1. Basics of the Juicebox protocol.
  2. Why Juicebox NFT projects are better.
  3. What does it cost?

1. Basics of Juicebox

Juicebox allows people and communities to crowdfund their project and give their contributors a stake as community tokens (ERC20) in return. Once funds have been raised, the protocol can be leveraged to automate payments from the treasury in a controlled, transparent and decentralized fashion.

2. Why Juicebox NFT projects are better

Juicebox NFT projects are a win-win for both communities and owners. There are countless ways you can configure your Juicebox project for your specific goals, but here’s a general strategy we recommend for NFT projects:

Instead of sending your NFT royalty fees directly to the owner’s wallet, you can send them to a shared treasury owned by your community. Upon buying an NFT (and paying the royalty fee), the new owners of your NFT’s would automatically receive an amount of your community tokens proportional to their purchase amount. The more someone pays for an NFT, the more tokens they receive. This gives your community members a formal and quantifiable stake in the shared treasury - your project as a whole. Your community could also contribute and gain stake in your project by just buying tokens, not necessarily having to own an NFT.

For communities

Token value

You can use these tokens for anything you want, perhaps governance, raffles or exclusive access to future drops. But a unique feature of Juicebox is that it allows the option for these tokens to be redeemed by community members for a portion of your project’s treasury. As the pie grows over time, a contributor’s tokens will be worth more. Your community can gain on top of just the increase in value of their NFT’s.

Having a shared treasury is optional, however, and you could instead just have all royalty fees sent to the Juicebox project route straight to the creators. In this case, the token your community receives could not be redeemed for any ETH.

Your community can gain on top of just the increase in value of their NFT’s.

Trust and transparency

Firstly, a properly configured Juicebox project makes rug-pulls impossible. You can give your community time to react before any changes to your funding and spending parameters take effect.

Additionally, your Juicebox page shows exactly how all your funds are flowing - how much and where it’s coming from, and where those funds are subsequently being spent. The only way funds can leave the treasury is by configuring and scheduling a payment, for which your community will always have time to react to.

Spending (left) and income (right) shown on a project’s Juicebox page

You may be asking, “Ok I see the benefit for my community, but what’s in it for the owner?"

For owners

Maintain a high stake in your project using the Reserved Rate.

If you choose the option of your token holders being able to redeem from a shared treasury, we should mention that as an owner you can control exactly how much stake you maintain of this treasury over time. The reserved rate allows you to keep a portion of all newly minted tokens. A 50% reserved rate means you will maintain a 50% ownership of treasury no matter how big your project gets.

This is mostly irrelevant if you don’t want a shared treasury and to simply route all funds into the project straight to creators.

Allow for people to contribute to your project without buying an NFT and, therefore, raise more funds.

This model opens up a massive and mostly untapped market of people interested in investing in an NFT project without necessarily buying an NFT. Whether it be too high of a floor price, not wanting to go through the whole selection/auction/listing process, or anything else, Juicebox opens the door of your project to these people through community tokens.

Consider if the projects like the Bored Apes had followed this model - how much more funds could the creators have raised as a result of people buying some stake worth less than the purchase price of a Bored Ape?

How much more funds could the [Bored Apes] creators have raised as a result of people buying some stake worth less than the purchase price of a Bored Ape?

Automate payments to key members of your team.

If you’re going for the shared treasury approach, Juicebox allows you to pre-program specific distribution amounts from your treasury to any ETH address, e.g. pay vitalik.eth US$1000 every week. This saves the hassle of manually transferring funds to your team from your personal or shared multisig wallet.

Otherwise, as mentioned prior, you can simply route all funds from the project to creators and their teams.

3. What does it cost?

Up front, all Juicebox costs is gas. As of the 23th of May, it’s about US$150-200 worth of gas to launch your project, deploy your own ERC20 token and a payable ETH address for you to link your royalty fees to. Then, for any funds you end up withdrawing from your project’s treasury, you’ll pay a 2.5% fee to Juicebox. But, for this 2.5% cut of your payout distributions, you’ll receive Juicebox’s native token (JBX) in return at its current issue rate. Moreover, your fee will give you a growing stake of Juicebox’s expanding ecosystem and treasury.

Conclusion

If this has already been enough information for one reading, feel free to tap out now. But if we’ve piqued your interest at all, you may want to read on about exactly how you’d setup your Juicebox NFT project here (https://docs.google.com/document/d/1Xqj5AyG8pZcpdtbxYfOzqwIaMNyrhQZPfVhfsUpYw1M/edit). Alternatively, come hangout in our Discord and arrange an onboarding call if you’re interested in learning more. Happy Juicing!!

Disclaimer: This is not financial or legal advice. As always, speak with an expert and do your own research.