MerchDAO is a blockchain-based marketplace for limited-edition and unique items. Unlike other collectible marketplaces, it allows users to propose new items and vote to decide what should be produced and sold. Another key dierence is that MerchDAO token holders can earn rewards for participating in the governance process.
People tend to assign higher value to objects that are rare or unique: a limited-edition item can cost several times more than a regular object that costs the same to produce. This is one of the main psychological factors behind the $370-billion market for collectibles, be it art, baseball cards, or t-shirts with a rock band logo. There are numerous marketplaces for such collectible items.
The arrival of blockchain has made it possible to authenticate a collectible, recording every transfer of property rights. Thanks to the new NFT (non-fungible token) standards, users can be certain that their items are really rare (or unique) and that the fact of their ownership is duly verified.
So far the NFT technology is mostly used for digital collectibles, but MerchDAO takes it to the next level with a marketplace for NFT-verified physical goods. The marketplace will feature both unique and
expensive items, such as artworks, and budget merchandise, such as t-shirts, mugs, and magnets.
MRCH token holders will be able to propose new designs and vote on them, while MerchDAO will negotiate the best deals with manufacturers. Thus, MerchDAO will oer only those items that the community actually wants. A second token, xMRCH, will give access to special auctions and even more exclusive items.
Decentralized governance on MerchDAO will largely follow the models used by DeFi projects like Compound. For instance, users will vote on how to allocate 50% of the project’s profits, be it for token
buyback-and-burn, exchange listing, etc. Users will earn staking rewards for participating in voting. Users will earn reputation points when they vote for successful items or when their own designs become popular, and these points will translate into very real rewards. Two more ways to earn on the platform are through referrals and through the Staking-as-a-Service feature: staking other projects’ tokens in the MerchDAO dashboard.
Therefore, MerchDAO brings together the NFT technology and the key concepts of decentralized finance to create a marketplace for physical goods where ownership is verified on blockchain. This White Paper explores the process of creating new merchandise, voting on decisions, earning rewards, and much more.
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