Incentivizing ETP Adoption

I know this is a lot of posts, I’ve been simmering on this for days in anticipation of the forum opening and this is the last one this morning.

I know there’s a lot of talk about marketing. I want to make the argument here that marketing should focus on the ETP’s, not WSB. WSB adoption is not important for long term health and profitability anywhere near to the extent that ETP adoption is. How many people run BlackRock? In other words, we don’t need a million people in the DAO, we need a million people investing in the DAO’s financial product.

Like a full page add in the WSJ that gives a super-concise explanation, example copy would be something like:

“Introducing the ETP, a new financial product by the WallstreetBets DAO
To get an ETP,
take an ETF,
change it from stocks to crypto and synthetic assets,
replace the traditional financial institution creating it with the WallStreetBets DAO”

This still advertises WSB, but focuses on the ETP. This emphasis has the added bonus of telegraphing that our coin has a product that we plan on profiting from and is therefore not a 100% speculative coin (so rare in crypto).

In addition to focusing marketing on ETP’s, we can also encourage ETP adoption by offering staking. My vote would be to use 1/3 of the tokens earmarked for the treasury (1/3 of 150mil WSB = 50mil WSB) to be distributed to ETP stakers for ? months (maybe 6 or 12).

TLDR: All value flows from the ETP. I don’t want to 2x or 5x in six months, I want to 100x in three years. Focusing on the ETPs is how we do that.

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I very much like the ETP marketing idea and I think that’s an angle that hasn’t been addressed before (not something I had thought about, certainly). Marketing the ETPs (especially if we can get some good performance numbers) will, as you say, be clever indirect marketing for the WSB token. Makes it more authentic, too.

One question i had, was what do you mean by rewards for “staking” the ETPs? Do you mean an ETP holder locking his/her ETP tokens for a certain amount of time and receiving WSB tokens in return for the lockup/commitment to not selling out of the ETP?

If so, for the early ETPs, that’s very similar to how new hedge funds get launched. They provide an “incentive” for early investors by giving lower fees to those investors, who in return are often locked into the fund for 1 or 2 years, which gives the fund stability of capital. In your example, the incentive for an ETP holder for locking up their ETP holding is WSB.

Like it. A lot.

Getting a new fund product off the ground IRL, needs the right incentives. The WSB project and ETPs could probably benefit from similar.

I agree this fits somewhere into the strategy. Personally I’m comfortable not marketing for awhile and let the product speak for itself. The concept is the X factor. It doesn’t need much more help immediately. I think there are faster ways to onboard liquidity, such as Memes for stocks that will eventually flip.

I was thinking more similar to how it worked for those of us who staked liquidity. I wasn’t necessarily thinking of a lockup period, but that could be possible. Or what we have now with V2 where there’s a small fee for leaving early.

Maybe we could have a couple of options. One with pretty low rewards with no lock-up and one with much bigger rewards with some kind of lock-up period (provided there isn’t any regulatory issue with this, which I think should be ok).

Security of capital invested into an early stage fund product is hugely valuable to the fund / product, so I would like to see this idea at least voted on by the community.

The higher the TVL in each ETP, the more it sells itself.

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So are you envisioning, for example, “Crypto 20” No-lock up is X return and “Crypto 20” With 2 week lock-up is X return +Y percent

If so: Would Y percent be a sliding scale variable depending on TVL and time locked?

One consideration is to have a small “WSB guy” on a skateboard showing the different returns based on time locked as you slide him along a rail or something like that next to “buy ETP” or whatever button is actionable for that situation.

IRL, the way that hedge funds (and other funds) give certain investors the “benefit” for locking up their commitment / capital is super simple and straight forward. The investors who lock up their captial for X amount of time all get the same fee discount (which in the WSB project, could be structured as $WSB token rewards) in return for agreeing to commit their capital to the fund / project for Y amount of time.

No sliding scale, no opportunity to arbitrage any differences in rewards. Just a simple X return for giving Y amount of time commitment.

What the reward amount and lock-up time commitment could be for the initial ETPs can be discussed or voted on by $WSB token holders…

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