Abstract
This proposal requests RARI DAO approval to acquire one (1) Otherdeed NFT from Yuga Labs’ Otherside metaverse platform to establish a permanent presence in a leading Web3 virtual environment. The acquisition leverages current favorable market conditions (suppressed ETH and NFT prices) to secure a strategic digital asset with minimal downside risk and significant potential for brand visibility, community engagement, and future experiential marketing opportunities. The Otherdeed will be held in the DAO treasury as a long term strategic asset.
Motivation
RARI DAO should implement this proposal to position itself at the forefront of Web3 brand development and community engagement in emerging metaverse platforms. The recent opening of Otherside’s Swamp and Nexus environments has validated the technical capabilities and user experience potential of Yuga Labs’ metaverse infrastructure, demonstrating this is not speculative vaporware but an actively developing platform with real utility.
Current market conditions present a unique window of opportunity:
• Ethereum prices remain significantly below all time highs, reducing acquisition costs
• Otherdeed floor prices have compressed from peak levels while maintaining liquidity
• Early positioning in established metaverse platforms provides first mover advantages for brand recognition
• Yuga Labs has demonstrated consistent execution (BAYC, MAYC, CryptoPunks acquisition, ApeCoin, Otherside development)
By securing an Otherdeed now, RARI DAO can:
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Establish brand presence in a premium metaverse environment
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Create future opportunities for experiential marketing and community events
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Acquire an appreciating asset class at cycle low prices with limited downside risk
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Signal to the broader Web3 community that RARI is forward thinking and committed to innovative engagement strategies
Rationale
This proposal aligns with RARI DAO’s mission and guiding values in the following ways:
Innovation and Forward Thinking
RARI has consistently positioned itself as an innovative DeFi protocol. Establishing a metaverse presence demonstrates continued innovation beyond traditional DeFi mechanics, signaling adaptability and vision for Web3’s future.
Community First Approach
The Otherdeed provides a dedicated space for RARI community members to gather, collaborate, and engage in novel ways. Future build outs could include educational experiences, governance town halls, social events, or gamified DeFi education, all strengthening community bonds.
Strategic Asset Allocation
As a treasury management decision, this represents prudent diversification into digital real estate with established provenance and liquidity. Otherdeeds maintain consistent trading volume on major marketplaces, ensuring the asset remains liquid if future reallocation is needed.
Brand Visibility and Market Positioning
Major DeFi protocols, DAOs, and Web3 brands are establishing metaverse presences. RARI’s absence from this emerging channel risks brand invisibility among the next generation of crypto users who will expect to interact with protocols in immersive environments.
Risk Adjusted Opportunity
At current price levels, the proposal represents minimal treasury exposure with asymmetric upside potential as both the metaverse platform matures and broader market conditions improve.
Long Term Value Creation
Unlike operational expenses that are consumed, this acquisition adds a persistent asset to the treasury that can appreciate, be monetized (through events, partnerships, or eventual sale), or provide ongoing utility for years to come.
Ecosystem Alignment
Purchasing through Rarible demonstrates RARI DAO’s commitment to supporting aligned Web3 infrastructure and marketplace ecosystems, reinforcing community values of decentralization and creator empowerment.
Key Terms
Otherdeed
An NFT representing a plot of land in Yuga Labs’ Otherside metaverse. Each Otherdeed is unique, containing different environmental attributes, resources, and Artifacts (in game items) that affect gameplay and building possibilities.
Otherdeed Expanded
A secondary collection of Otherside land parcels released after the original Otherdeed collection to expand the total available land in the metaverse. Otherdeed Expanded parcels maintain the same gameplay functionality and ownership rights as original Otherdeeds, offering similar environmental diversity and building opportunities at more accessible price points.
Otherside
Yuga Labs’ flagship metaverse platform built on the ApeCoin ecosystem. A gamified, interoperable virtual world where users can explore, build, gather resources, and engage in social experiences.
Swamp/Nexus
Specific biome environments within Otherside that have been opened to Otherdeed holders, representing the first playable areas and demonstrating the platform’s technical execution and user experience design.
Floor Price
The lowest price at which an Otherdeed NFT is currently listed for sale on major marketplaces. This represents the minimum acquisition cost.
Yuga Labs
The Web3 company behind Bored Ape Yacht Club (BAYC), CryptoPunks (acquired), and Otherside. Established track record of successful NFT projects and significant venture capital backing ($450M+ raised).
Rarible
A NFT marketplace aligned with decentralized values, supporting multiple blockchains and creator royalties. The natural marketplace choice for RARI DAO given shared ecosystem alignment.
Specifications
Platform: Otherside metaverse (https://otherside.xyz)
Asset Type: Otherdeed NFT (ERC-721 token) from either:
• Otherdeed Collection (Original): Contract 0x34d85c9CDeB23FA97cb08333b511ac86E1C4E258
• Otherdeed Expanded Collection: Contract 0x790B2cF29Ed4F310bf7641f013C65D4560d28371
Collection Considerations
Both Otherdeed and Otherdeed Expanded parcels provide equivalent functionality within Otherside, including:
• Full land ownership and building rights
• Access to all environments and gameplay features
• Unique environmental attributes, resources, and Artifacts
• Commercial usage rights per Yuga Labs licensing terms
The choice between original Otherdeed and Otherdeed Expanded will be determined by:
• Optimal value relative to attributes and location
• Expert community guidance on strategic positioning
• Market liquidity and availability at time of acquisition
• Specific biome and attribute desirability for RARI DAO’s use case
Blockchain: Ethereum mainnet
Marketplace Acquisition: Rarible (https://rarible.com)
Custody: RARI DAO treasury multisig wallet
Technical Requirements
• Ethereum compatible wallet infrastructure (already in place via existing treasury multisig)
• No additional technical infrastructure required for acquisition
• Future build out would require Otherside SDK integration (if/when DAO approves development)
Selection Criteria for Specific Otherdeed
The acquisition team will prioritize:
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Floor price or near floor price to minimize cost (applicable to both Otherdeed and Otherdeed Expanded collections)
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Desirable biome (Swamp, Infinite Space, or Nexus preferred for visibility/accessibility)
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Strategic attributes identified through expert consultation with active Otherside community members
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Clean provenance (original mint or established holder history)
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Verified metadata and no smart contract issues
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Collection selection (Otherdeed vs Otherdeed Expanded) based on best value and strategic fit
Steps to Implement
Step 1: Governance Approval (Timeline: Days 1 to 14)
• Post proposal to RARI DAO governance forum
• Gather community feedback and address questions
• Submit formal on chain vote
• Achieve quorum and majority approval
Cost: $0 (internal governance process)
Manpower: Proposal author + DAO community engagement
Step 2: Expert Consultation and Target Identification (Timeline: Days 15 to 16)
• Proposal author consults with leading active members in Otherside community who are experts in deed attributes and benefits
• Identify 3 to 5 specific Otherdeed options that meet strategic criteria (optimal biome, attributes, location, and value) from both Otherdeed and Otherdeed Expanded collections
• Create prioritized acquisition list with rationale for each option
• Present shortlist to treasury committee for review
Cost: $0 (voluntary expert consultation)
Manpower: Proposal author (6 to 8 hours consultation and analysis)
Step 3: Market Monitoring and Rapid Response Preparation (Timeline: Days 16 to 17)
• Treasury committee or designated multisig signers prepare for rapid execution
• Monitor identified target Otherdeeds on Rarible for availability and pricing across both collections
• Establish communication protocol for quick decision making (Discord/Telegram for real time coordination)
• Confirm multisig signers are available for immediate transaction execution
Cost: $0 (existing DAO contributors)
Manpower: 2 to 3 treasury committee members or authorized signers (2 to 3 hours preparation)
Step 4: Acquisition Execution (Timeline: Day 18, or immediately when optimal target becomes available)
• Execute purchase transaction from RARI DAO treasury multisig via Rarible upon identification of optimal acquisition opportunity
• Acquire highest priority Otherdeed from shortlist at or below approved budget ceiling
• Given fluid nature of NFT sales, execution must proceed rapidly once target is identified
• Verify successful transfer to DAO treasury wallet
• Update treasury records and public documentation
Cost: [Current floor price] ETH + gas fees (approximately $1 to $10 depending on network congestion)
Manpower: Treasury signers execute multisig transaction (1 to 2 hours)
Note: Speed is critical as target deeds may sell quickly; treasury signers must be prepared to act within hours of target identification
Step 5: Community Announcement (Timeline: Within 24 to 48 hours of acquisition)
• Publish acquisition announcement across RARI DAO social channels
• Share Otherdeed details (plot location, attributes, visual, collection) with community
• Explain rationale for specific deed selection based on expert consultation
• Invite community input on future utilization and build out ideas
• Update DAO website/documentation to reflect new treasury asset
Cost: $0 (existing communication channels)
Manpower: Communications/community manager (2 to 3 hours)
Step 6: Asset Management and Future Planning (Timeline: Ongoing)
• Include Otherdeed in regular treasury reporting
• Monitor Otherside platform development and ecosystem updates
• Assess future proposal opportunities for plot development, events, or strategic partnerships
• Maintain custody security and verify asset integrity quarterly
Cost: $0 (absorbed into existing treasury management)
Manpower: Treasury committee ongoing oversight (minimal, <1 hour/month)
Legal Documentation / Risk Assessment
Legal Considerations:
• Standard smart contract interaction risks (mitigated by using established marketplaces)
• No anticipated IP issues (Yuga Labs grants commercial rights to Otherdeed holders per their licensing terms)
Risk Assessment:
• Market Risk (Medium): NFT and ETH price volatility could result in mark to market losses in the short term. Mitigation: Long term hold strategy, current prices near cycle lows, assets remain liquid.
• Platform Risk (Low to Medium): Otherside development could stall or fail to achieve adoption. Mitigation: Yuga Labs’ track record, significant funding, active development demonstrated.
• Timing Risk (Low): Target deed may sell before DAO can execute. Mitigation: Identify multiple acquisition targets, prepare for rapid execution, maintain a flexible approach.
• Opportunity Cost (Low): Treasury funds allocated to Otherdeed unavailable for other uses. Mitigation: Small percentage of treasury, does not impact operational runway.
• Smart Contract Risk (Very Low): Contract vulnerabilities or marketplace exploits. Mitigation: Use established, audited marketplaces; Otherdeed contracts have years of safe operation.
• Custody Risk (Very Low): Loss of access to DAO multisig. Mitigation: Existing treasury security practices apply.
Overall Risk Assessment: This proposal represents a low risk, high upside opportunity given current market conditions, established platform legitimacy, minimal treasury exposure, and expert guided selection process.
Timeline
Governance & Approval: 14 days
Forum discussion to Snapshot vote to On chain execution
Expert Consultation: 1 to 2 days
Community expert consultation to Target shortlist creation
Market Monitoring: 1 to 2 days
Price tracking to Execution readiness
Acquisition: Hours to 1 day
Rapid execution upon target availability to Asset custody confirmation
Announcement: 1 to 2 days
Community communication to Documentation updates
Total Implementation: 17 to 19 days
From proposal submission to completed acquisition
Future Development: TBD
Separate future proposals for build out, events, or partnerships
Start Date: Upon proposal approval
Expert Consultation: Begins immediately upon governance approval
Acquisition Target: Within 7 days of governance approval, executed rapidly when optimal target identified
Completion Date: 17 to 19 days from proposal initiation
CRITICAL NOTE ON TIMING: Given the fluid nature of NFT marketplace sales, the treasury committee is authorized to execute the purchase immediately upon identification of an optimal target from the expert curated shortlist, provided it falls within the approved budget ceiling. This flexibility is essential to securing high value deeds before they are purchased by other buyers.
Overall Cost
Acquisition Cost: 0.09 to 0.16 ETH (based on current Otherdeed and Otherdeed Expanded floor price ranges for quality deeds; exact amount TBD at execution based on real time market conditions and expert recommendations)
At current ETH prices (approximately $3,300): $297 to $528 USD equivalent
Gas Fees: Approximately $1 to $10 (dependent on network congestion at time of purchase)
Total Implementation Cost: $298 to $538 USD equivalent
Ongoing Costs: $0 (no maintenance, hosting, or operational expenses)
Budget Ceiling Authorization: The DAO treasury multisig is authorized to spend up to 0.20 ETH (including gas) to acquire one Otherdeed NFT (from either Otherdeed or Otherdeed Expanded collection) meeting the specifications outlined above. Any amount below this ceiling allows for market flexibility while maintaining fiscal discipline.
Treasury Impact: Represents a minimal percentage of current RARI DAO treasury holdings, maintaining conservative risk parameters.
Success Metrics (for future evaluation)
• Asset acquisition completed at or below floor price
• Deed selection reflects expert guidance on optimal attributes and location
• Community engagement and positive sentiment on announcement
• Otherdeed retained as strategic asset through at least one market cycle
• Future utilization proposals developed based on platform evolution
Future Opportunities (not included in this proposal)
• Custom build out and experiences on the Otherdeed plot
• Hosting community events or governance meetings in Otherside
• Strategic partnerships with other DAOs/protocols in adjacent plots
• Revenue generation through branded experiences or sponsored events
This proposal positions RARI DAO to secure a strategic metaverse asset at favorable market conditions while maintaining fiscal responsibility and alignment with community values. The expert consultation process ensures optimal deed selection, while the rapid execution framework accommodates the fluid nature of NFT marketplace dynamics. The minimal cost and downside risk relative to potential long term upside make this an opportune moment for forward thinking treasury diversification.