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· 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.

· 4 min read
Felixander

“Juicebox in the words of” is a series that highlights JB community members in interview form. Learn about members’ roles at JB and what makes them tick.

DrGorilla is a contributor to the JB space on the dev side. By all accounts a deft coder, what most people will really tell you is how fucking funny he is. I stand with many when I say that I feel like he’s a comedian moonlighting as a coder. After all, comedy never pays the bills. Read on to learn a bit more about his passions, history at JB, and eclectic former jobs— one of which traces back over 500 years!

How'd you get started with JB, and how has it changed since you've been here?

It all started in November, when nicholas reached out to tell me that JB was looking for devs. I joined immediately. I had left previous projects because they were either running in circle or became cash-grabs, so I was looking for something more interesting (for a solidity dev) to do. I joined the Discord the same day nicholas reached out and wrote my first batch of unit tests the same night!

This period was in-between ConstitutionDAO and AssangeDAO, so we were in some kind of a wave of newcomers to JuiceboxDAO. Since then, Juicebox and JuiceboxDAO have been maturing a lot, in terms of governance, tech, identity (and there are so many cool things yet to come) :)

That's such an awesome origin story. One thing that has struck me is how open and inclusive people are at JB; I haven't encountered a single asshole yet. Where are they?

… Not in JuiceboxDAO. All in all, this is a great contributors team, and a super diverse community around, really a nice place!

What is something people here in JB would be surprised to learn about you? Ie interesting hobbies/life experiences etc?

Ok, tricky to not doxx myself too much… Maybe a list of professions and jobs I might—or might not :)—have done: Waiter Morgue janitor Photo-assistant MD & surgical resident Finance master & gintonic producer Art degree & real author of the Vitruvian man

lol! Omg that’s some eclectic shit! Tell me about what it was like cleaning up the morgue!

... Cold haha. But clean (not the cleanest part of my professional cleaning career, but certainly the most atypical one:) I was a teenager, so a bit afraid the first time, but humans are super resilient, I got along with it:)

How many ghosts did you bump into? Did a door ever slam shut across the hall in an otherwise empty building?

Those guys were really nice as to mark the empty/occupied "rooms" (that was a small morgue, not like the ones with shelfs as in movies, rather one small refrigerated room per body), but still, it happened to bumped into someone (who obviously didn't care being bothered anymore).

I remember one of the full-time (adult) janitor having this sentence I'll never forget: "You should rather be scared of the people alive", adding paranoia to my already existing ptsd.

lol

...

Ok, we will do a follow-up article just about this topic, but let's forge on back to nicer topics.

“DrGorilla’s Morgue Experience!” - yeah, rather morbid.

Between you and me and the internet, who is your favorite JB contributor, and why is it Zom_Bae?

Because she rocks! Nobody’s expecting a Zom_Bae, yet, she appears to solve stuff, and that’s pretty cool imo.

You know she singled you out when she was asked who her favorite contributor was.

“My favorite contributor is Felixander because he makes me look good on paper.”

Perfect, best answer so far! OK, tell me what the future of DrGorilla looks like. What are you really excited about?

Lately, I've been like deep into V2 final push, so this is my "scope" when answering that I'm really excited about starting coding treasury extensions (imagine strats à la Yearn, but as a DAO on Juicebox!) - nerdy-side aside, this is gonna rock!

Haha, that's the perfect answer for a JB contributor! Your heart is in the right place!

My heart and my keyboard : )

We will do a follow-up about your morgue days and so much more, but for now I will ask one last question: whats the silliest thing you've ever done (beside this interview)?

This is a tough one! Nothing beats this interview.