logo
search
Published on May 12, 2022

Down the Rabbit Hole: PartyDAO, a DAO for buying NFTs as a team

Sidharth
#Insights
icon-alt5 Mins
Down the Rabbit Hole: PartyDAO, a DAO for buying NFTs as a team

DAOs have traditionally been associated with a treasury of funds and a collective vote/decision on where to send/spend those collected assets. PartyDAO is unlike any other DAO that has come before it as it aspires to be more entertaining and fruitful than just that.

PartyDAO is a fully decentralized organization. It has put together a team of talented contributors from the product, engineering, smart contract development, design, security, and go-to-market to deliver PartyBid. The key mandates of PartyDAO are as follows:

  • Ship PartyBid, a product for bidding on NFTs in groups.
  • Develop PartyDAO into a long-term organization capable of funding for its own survival.

PartyBid

NFT auctions have gained traction as a new avenue for producers, artists and creators to sell their work, attracting a slew of new talent to the crypto space. However, the traditional auction and selling mechanism favors whales over the supporters who contribute and provide value to an NFT initiative. This is where PartyBid comes in. Denis Nazarov started it all with a single tweet.

PartyDAO was founded to get PartyBid production-ready and out into the world, staying true to the project's internet-native roots. PartyBid allows users to pool their capital to buy NFTs as a group or to bid in an NFT auction.

Anyone can start or join a PartyBid, donate ETH, participate in communal bidding.

PartyBid is PartyDAO's first product. Initially, To join the DAO and party, you'll need 10 $PARTY tokens.

So far, 172 Party Bids have been created with the total contribution being 3,876, and the ETH contributions standing at 3,421.

Source: https://dune.xyz/jamiedubs/PartyBidPartyDAO

Out of the created parties, 48.5% are from Foundation platform and 43.9% from Zora.

Source: https://dune.xyz/kroeger0x/PartyDAO

Features of PartyBid

  • A PartyBid contract targets a single NFT auction.
  • While the auction is still running, anyone can donate ETH to the PartyBid.
  • Anyone who has contributed to the PartyBid can place a bid on the NFT auction that is being targeted.
  • If the PartyBid wins the NFT, the token is fractionalized after the auction ends. All donors whose assets were utilized to win the auction are awarded ERC-20 tokens representing a fractionalized part of the NFT. Fractional.art contracts are used to fractionalize tokens.
  • Visit any address or ENS name's profile to see what parties they've been a part of and how many party tokens they have. Alternatively, you can view your activities on your profile and redeem any unclaimed ETH or tokens.
  • PartyBid now has an activity feed that shows all of the protocol's on-chain activities.
  • You can also see which parties are currently active and which are gaining traction with many contributors at any given time.

PartyBid Fee

When a Party wins an auction, the fee is 2.5 percent of the ETH utilized in winning bids and 2.5 percent of the fractional tokens issued.

  • Parties will win auctions more easily and for less money if the ETH charge is reduced.
  • The success of PartyDAO is linked to the success of the parties that win auctions on the protocol.
  • PartyDAO will offer liquidity for fractional tokens acquired via PartyBid, creating a smoother experience for PartyBid customers because fees are paid in a combination of ETH and tokens.

Different Roles Played in PartyDAO

PartyBidFactory:

  • StartParty - Create a PartyBid contract with the NFT auction you want to target.

PartyBid:

  • Contribute - Make an ETH donation to the PartyBid.
  • Bid - A bid on the NFT auction is triggered by this command. To beat the current high bidder always offers the smallest possible bid. If the PartyBid is already the highest bidder, it reverts.
  • Finalise - Call once the auction has ended to record and finalise the auction results. If the PartyBid was successful, the fractionalized NFT vault is deployed.
  • Claim - When the auction ends, call once per contributor to claim fractionalized ERC-20 tokens and surplus ETH (if the auction was lost, or if the funds were not used to win the auction)

Working of Parties

The following are the most important details to be aware of:

  • Markets that are supported include: NFTs available on Zora, OpenSea, Foundation, Catalog, and Nouns can be targeted by parties.
  • Auctions: A Party can collect any amount of ETH while targeting an auction. When a Party reaches the auction reserve price, it can place the first bid and start the auction. As long as the Party isn't currently in the lead, anyone who has donated ETH can start the next bid.
  • Purchases: The Party can purchase the item as soon as it gets enough ETH.
  • Permissionless and untrustworthy: Anyone can start a Party and customize it to their liking. Funds donated to a Party and NFTs transferred to a Party are managed via a smart contract and are not held by a single individual.
  • Winning: When a Party successfully obtains an NFT, all donors whose ETH was utilized in the purchase are granted proportional ERC-20 tokens. These tokens reflect fractional ownership of the NFT.
  • Fee: PartyBid levies a fee of 2.5 percent of the ETH used in the transaction and the generated tokens on successful purchases by Parties.

Here are the number of monthly proposals and votes in Party DAO for the last few months.

Source: https://deepdao.io/organization/e865a457-928a-4b31-b248-e2169f02bd7d/governance

Party Splits

You can start a party and give a share of the fractional tokens to whatever address you like with Party Splits.

Although being a simple primitive, it can be used in several ways.

  • DAO Treasuries: Anyone can start a party and send a portion of the fractional tokens to a DAO treasury's address. DAOs collecting NFTs via PartyBid can use this as a recurrent funding model.
  • Community Organizers: A community organizer who organizes a group of people to throw a party can charge a portion of the total as a hosting fee.
  • Creators and Collectors: After selling an NFT at auction, a seller can use this function to keep a percentage of the work.

Start a party at the https://www.partybid.app/ or join the latest party from the Crypto Cookout to observe Party Splits in action. The Crypto Cookout is a community dedicated to finding and collecting black punks. They're using Party Splits to fund a community-run multisig that will assist the Crypto Cookout movement in establishing a more extensive network of supporters and donors.

What are the new Token Gated Parties?

Support for token-gated parties is another new feature that went live. This tool allows you to collect NFTs with a small group of individuals in various ways.

When creating a party, you can now limit contributions based on the ownership of any ERC-20 token and specify a minimum threshold. This allows tokenized communities to provide curated parties for their members and small groups of friends to throw their parties.

To try it out, create a party with the "Token Exclusive" toggle enabled, paste in the address of any ERC-20 token, and set the minimum threshold to whatever you like.


Share this blog on
social-altsocial-altsocial-altsocial-altsocial-alt

Subscribe to our Newsletter

Get the best updates from the Web3 ecosystem & The Dapp List in your inbox every week 👇

newsletter-img