Authors
Ringo
Weston
Summary

This is a proposal to the Layer2DAO community to bootstrap the creation of an L2 Ethereum focused NFT exchange.
Background
Since the announcement of the impending shutdown of the current leading L2 NFT marketplaces of Quix - the Optimism NFT landscape has been mostly destroyed. The current state of L2 NFTs is hurting Layer2DAO and other projects that launched on Optimism and are now left without a marketplace that is focused on L2. The Optimism Foundation and Quix have stated they will be open sourcing Quix’s source code - but in the meantime the ecosystem has moved to a standstill - this proposal is an attempt to rectify the situation to the best outcome possible. A rollup centric NFT marketplace is the goal - and there is immense potential if executed properly we believe.
Details
The exchange will be called NFTEarth. We will be launching a token native to the exchange as well to incentivize trading and staking on the exchange as well as L2 adoption for NFT activity. We would like to highlight that we reserve the right to change the name of both the exchange and the token. There will be official announcements regarding the specifics here. This initial grant from the Layer2DAO will serve 1 purpose - to attempt to bootstrap the marketplace - once a proof of concept has been created and their is demonstrated demand and utility in the exchange and token, the plan is to pursue larger funding via the Optimism Foundation and other sources such as Gitcoin or private funding.
First, opensource everything from day 1. The first task will be ensuring all have access to the codebase on GitHub. This will be a core part of the new exchange ethos and is more in alignment with Layer2DAO and Optimism’s visions.
Second, tokenomics - deploying a native marketplace token will be a distinct competitive advantage and will serve the function that has allowed both X2Y2 and LooksRare to compete with OpenSea on Maine Ethereum.
Third, creator focused - we plan for this to be the most powerful component of the strategy. We have already found 22 unique contributors who have already publicly expressed interest in contributing to the exchange via Community Moderators or Exchange Ambassadors. (Join the community to learn more if you are interested in this) - these rolls will be to place massive emphasis on the global focus of the L2 marketplace and on-boarding users from all over the globe. To do so, we will be using a portion of the grant to pay monthly stipends to each contributor in the range of 50-100 OP as incentive for helping the exchanger succeed. Their roles will be to assist in the very unique strategy of onboarding of new users and geographies with a strong emphasis placed on bringing new creators to L2. We believe this is where the opportunity is to create a long-term competitive moat.
Number of OP tokens awarded
27,500 OP tokens - with the tokens sent to a Safe on Optimism.
Proposal for token distribution
The ambition here is to create a unique platform for the L2 NFT ecosystem. This means building flexible and robust reward mechanisms for both users and creators - this begins with the creation of a token native to the exchange. This is to facilitate value creation and decentralized governance. Long-term, the forecast for the on-going budget is approximately $50,000 USD/month. The exchange plans to execute a token swap with Layer2DAO once the token is live to ensure the L2DAO community is rewarded for the initial support provided.
How will the OP tokens be distributed?
7,500 OP towards new NFT marketplace build, token launch, infrastructure build out completion
12,000 OP for development work and hiring (whether contract work or full-time contributors)
8,000 OP to be for the community Moderators and Ambassadors
When will the use of this grant be fully exhausted?
We expect the entirety of this grant funding by the end of March 2023.
Implementation
If LTIP-6 is approved Layer2DAO and NFTearth will execute the initiatives discussed in the proposal.
Copyright
Copyright and related rights waived via CC0.
