Introducing Alchemy
Turn NFTs into Liquid, DAO controlled Communities
Alchemy is a project designed to completely change the way we think about non-fungible asset ownership. By creating ERC20 GovernorAlpha based DAOs that wrap any NFTs into fungible and liquid tokens, Alchemy allows people to sell partial ownership, create collectives for collections and turn illiquid assets into liquid ones.
How it works
Alchemy lets users take any NFTs that meet the ERC721 standard (almost all) and create a Decentralized Autonomous Organisation which owns the underlying NFT(s). The DAO is controlled by the DAO’s governance tokens, able to be freely traded and transferred, creating liquid markets for ownership. All tokens are worth 1 vote each, and so owning a token gives you both governance rights letting you vote what to do with the NFTs as well as claim rights for NFT sales.
Core features
Buyouts
NFTs can be purchased from the DAO directly by simply transferring the ETH buyout for that NFT to the contract, purchasing the NFT from the DAO. The price for each and every NFT can be set to any value by the NFT DAO allowing for targeted prices while keeping the governance token value as the collective value for all NFTs.
The DAO can also set a buyout price for the whole DAO to be purchased. Allowing for speculators to purchase and hold ownership in collections then profit by selling the collection for more later.
Burning
At any time the governance tokens for the NFT DAO can be burned for a proportional amount from the NFT DAOs Ether balance. This allows holders to redeem their profits after a DAO buyout or to exit assuming some NFTs have sold but theres no liquid market for the tokens.
Fund Raise and Fund Management
The DAO can issue new tokens for itself to be able to fund raise to purchase more NFTs. By setting a value for the raise and amount to sell, the DAO can mint governance tokens to be purchased by others in exchange for ETH which can then be used to purchase further NFTs to generate more value.
By allowing for the DAO to dilute the stake in exchange for raising funds to the Treasury, more users can join without holders needing to sell, funds can be used to purchase NFTs, fund costs for like marketing or managing the DAOs and create whole Decentralized Autonomous Organisations around the held NFTs owned and managed by the community. DAOs can take the form as their own funds, collectives or even common good pools, owning say Ethereum.eth and letting the DAO allow projects to register subdomains, generate their own fees from leasing domains to donate and to prevent squatting.
Governance
The holders are able to create proposals to set buyout prices, fundraise, buy NFTs, sell NFTs, transfer/loan NFTs or do any other action that can be done on chain. Proposals are voted on by holders and allow for Decentralized Community Ownership and control.
ALCH token
Every buyout that happens for an NFT that was owned by an Alchemy based NFT DAO sends a small fee to the ALCH DAO which splits the fee between the ALCH Treasury and to a staker contract. ALCH holders can stake ALCH tokens to earn these fees, which as the usage for Alchemy DAOs grows so will these fees.
ALCH also controls the Alchemy Treasury, where holders can vote for how the funds should be used to manage and grow the protocol. By allowing for holders to vote as well as have a direct interest in the growth which drives fee revenue, the system incentivizes the best possible uses for funds that will benefit the protocol and the holders symbiotically.
Distribution
The ALCH supply will be 10,000,000 with the following allocations
Team Multisig
2,000,000
1,000,000 Founder and team allocation
400,000 Strategic Investors and partners - will be moved to a decentralized VC model later
200,000 Growth and Community
400,000 future devs, team and advisors
Creator Airdrop
100,000 - 500,000
Airdrop to early users that create NFT DAOs for their NFTs. These users are the base for the ecosystem and need to pay the costs to deploy the contracts aswell as be willing to decentralize their ownership. Based on DAOs deployed, the market and participants, this allocation may continue to be able to incentivize DAOs to be created or allocated to further community growth.
Community Airdrop
2,000,000
Airdrop to users that hold NFTs. These users are able to take a claim for the governance for the protocol and distribute to the core market that Alchemy will generate revenue from. We have assuned that only .5x NFT holders will claim. So we have set the reward at 2x the amount needed to allow all holders to claim, so if users leave their claim too late, there may be none left. Any unclaimed tokens will be sent to the Treasury.
Liquidity Providers
500,000
A small allocation to ALCH/ETH LP stakers to allow for liquidity.
Treasury
5,000,000
2,000,000 after launch once the team doesnt have majority control for the DAO
3,000,000 slowly vested for 2y to allow for continuous cash flow for early growth
Come join the discussion
Alchemy
https://twitter.com/AlchemyDAO
Discord
Substack
https://alchemydao.substack.com/