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. As we have mentioned above, every club is essentially a DAO, and quite a specific one since it focused on ownership and efficiency. So, it can’t always wait for everyone to vote on every single trade and so on, but at the same time it does need to have governance elements to provide security to members and continuity to the club operations. How can we achieve that? By providing flexibility. We see a club as a set of rules and parameters that the curator can combine in different manners to create a structure that might be most efficient in a particular case. So, flexibility will allow creating efficient structures via experimenting with them. Eventually, the most successful models will be provided as templates. And, of course, we don’t expect curators to be tech-savvy, so entire DAO (club) creation is provided in a no-code and eventually single-click manner.
Clubs can be private (a group of friends, or a game guild, with limited functionality and no social token) or public (actual business with fundraising options and an underlying legal structure).
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 the curator bought with said funds sell for a bigger amount. That’s why for every cent provided to the club, the 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 the 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 the 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 the club’s gallery. A curator can buy new NFTs using the treasury funds, or sell an NFT from the vault — in this case, money will move to treasury and be 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.