Clubs — explained

Clubs are, as the name suggest, at the very heart of the UNQ Club project. Here we will explain what the clubs are, how they function, and what are the possibilities for both collectors and supporters.

What is a club?

There are two major perspectives here. Let’s start with user’s perspective.

Clubs exist to make collecting easy. Not everyone has time or expertise to professionally collect different items, physical or digital. On the other hand, those who have usually are not too liquid (means they don’t have free money on their hand at all times) which makes it hard for them to expand collections. Club is a place those two kinds of people come together to help each other.

In crypto-traditional terminology you can say that club is a DAO — and that’s a technology perspective.

How does a club appear?

An expert (curator) can set up a club. Clubs can be of different levels, but we’ll get to that part later. For the beginning, they can set a level 1 club. That means they can raise money, but not directly, since that can be too big of a risk for a community until that curator proves himself. To reduce those risks, we are integrating one of DeFi’s sweethearts — liquidity pools (other techniques will be also added later). Most of people are familiar with it, so you know that by providing liquidity you can earn money (on fees). However, those fees are definitely not life changing, unless all the proceeds go to one pool as well. Now, that means that curators can raise funds from club members very fast and there is no risk whatsoever for supporters.

But, for more experienced curators with a proven track record there are level 2 and level 3 clubs available, which are not that easy to set up, and curators have a higher level of responsibility. But, those can also benefit from a direct fundraising and even raise money to buy and tokenise physical objects.

How is the club governed?

Now, the user wants to have some understanding that he has provided the curator with funds and is entitled to part of the earnings should the NFTs that curator bought with said funds sell for a bigger amount. That’s why for every cent earned by the club from staking user will receive a corresponding club token. It’s similar to LP tokens in liquidity pools (du-uh!) and represents two things — that the user is entitled to a part of proceeds of the club (as defined by the curator) and that he can vote on changes in the club (for example, change of club fees). Also they can sell those tokens on an internal DEX. That provides clubs with liquidity of their entire collection and actual performance without any black magic like fractional NFTs.

What can a curator do?

The curator has two major tools at his disposal — treasury and vault. Treasury stores all “money” — UNQ (platform’s native token), SOL, USDC, ETH, and so on. Whatever users provide as a result of direct fundraising, or yields from liquidity pools, are stored here, and those funds are used to purchase NFTs.

NFTs are stored in the vault, and can be seen in club’s gallery. Curator can but new NFTs using the treasury funds, or sell an NFT from the vault — in this case money will move to treasury and distributed between the treasury, curator, and club’s token holders according to the schedule created by the curator.

Here is a little scheme for you, and if it seems intriguing from the technical perspective — that’s because it is! We will soon prepare a blog post regarding the technical architecture of UNQ, so stay tuned.

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