• Monsters artwork is on-chain public domain.
• One Monster is auctioned every hour for a maximum of 5 years.
• Settlement of one auction starts the next.
• All Monsters are members of the Monster DAO.
• Monster DAO uses a fork of Compound Governance.
• One Monster = One vote.
• The treasury is controlled exclusively by Monsters via governance.
• Artwork is generative and stored directly on-chain (not IPFS).
• No Monster traits are weighted for rarity.
• The minimum bid price to start an auction is 0.08 ETH.

The Monster community is truly autonomous with no corporate hierarchy or domicile location. Members from around the world can share proposals, concepts, ideas and make decisions as a whole. The members have equal access to the same information for decision making and face the same costs for transacting their preferred choice.

Monsters DAO solves coordination problems by aligning individual incentives with community consensus outcomes by resolving intricacies associated with collective actions. By pooling funds and voting on fund allocation, the members share the costs and incentivize coordination to benefit the entire Monsters DAO.

The Monsters are sold via an auction contract or Buy Now. This process will act as a self-sufficient Monster generation and distribution mechanism, auctioning one Monster every one hour or faster if the Buy Now feature is executed. The Monsters DAO treasury receives 85% of all auction proceeds.

The minimum price has been set at 0.08 ETH for the success of the DAO but the Monders may decide to raise the minimum bid based on auction performance. This is a necessary mechanic for the treasury to maintain a sufficient balance to compete in the curation and collection of Blue Chip NFTs.

Each time an auction is settled, the settlement transaction will cause a new Monster to be minted, and a new auction will begin for a maximum of 5 years.

While settlement is most heavily incentivized for the winning bidder, it can be triggered by anyone, allowing the system to fairly auction Monsters as long as Ethereum is operational and there are interested bidders.

The Buy Now button was established for purchasers that want to forgo the auction process and buy a Monster immediately. The Buy Now button will never be less than 3 ETH but will be based on the following simple formula (highest ever treasury amount by total current supply x 1.3= Buy Now).

Monsters DAO utilizes a standard fork of Compound Governance and is the main governing body of the Monsters ecosystem. Each Monster is an irrevocable member of Monster DAO and entitled to a minumum of one vote in all governance matters. Monster votes are non-transferable (if you sell your Monster NFT, the vote goes with it) but can be delegated, which means you can assign your vote to someone else as long as you own your Monster.

Any Monster member may submit a proposal to the DAO so long as the the minimum requirements of the DAO have been met. The minimum number of Monsters needed to submit a proposal is set to 0.2% of total supply (rounded up). Example: If the total supply is 100 it will take 1 Monster to submit a proposal. If total supply is 1,000 it will take 2, etc.

A minimum threshold of 100 Monsters must be in the treasury before any proposals can be submitted to the DAO. Monsters DAO contracts can execute one or more transactions called a proposal. Proposals can range from funding to more complex structures, affecting several components of the DAO.

Approved proposals are funded from the pooled community funds. The Monsters DAO is 100% transparent, allowing anyone with a internet connection to review the treasury and the final decisions taken by the members.

When DAO members submit a governance proposal, it enters a review period. Below is a schematic representation of how the governance works for Monsters DAO.

Once the Monsters community initiates a proposal, a review period starts. The review period is set for 3 days after which a voting period starts for 5 days and a time lock of 2 days. If the community passes the proposal, collecting at least 15% of quorum votes the smart contract executes the proposal from the treasury of pooled funds. Generally, the total time to decide on a proposal takes as long as 10 days.

The Monders dont want to have any veto rights however it has become evident from other DAOs that there can be instances of an attack against the treasury or proposals that may harm the DAO. Our ultimate goal is to have the veto power as a temporary solution but it requires more research for a solid and transparent solution.

This veto right will only be used if the Monders in their judgement believe that a proposal has been submitted that is inappropriate or self serving and would harm not only the DAO but all members of the DAO.

The Monders consider the mechanics of the DAO and the members as the final decision making body as a whole and we consider the veto power an emergency that should only be used in rare circumstances and not in the normal course of the DAO proposal system.

There are unfortunately no algorithmic solutions for making these determinations in advance (if there were, the veto would not be required), and proposals must be considered on a case by case basis.

Monsters are generated randomly based on Ethereum block hashes. There are no 'if' statements or other rules governing Monster trait rarity, making all Monsters traits equally the same to be minted. However, we will be displaying traits on secondary markets for the benefit of the community for all secondary market sales. As of this writing, Monsters are made up of the following components:

• Backgrounds (4)
• Body Colors (33)
• Accessories (141)
• Heads (237)
• Eyes (24)

Monsters are stored directly on Ethereum and do not utilize pointers to other networks such as IPFS. This is possible because Monster parts are compressed and stored on-chain using a custom run-length encoding (RLE), a form of lossless compression.

The compressed parts are efficiently converted into a single base64 encoded SVG image on-chain. To accomplish this, each part is decoded into an intermediate format before being converted into a series of SVG rects using batched, on-chain string concatenation. Once the entire SVG has been generated, it’s BASE64 encoded.

The Monster Seeder contract follows the same format as Nouns to determine Monster traits during the minting process. The seeder contract can be replaced to allow for future trait generation algorithm upgrades as the community grows per the DAO. Additionally, it can be locked by the Monsters DAO to prevent any future updates. Currently, Monster traits are determined using pseudo-random number generation:

Keccak256 (abi.encodePacked (blockhash (block.number - 1), MonsterId))

Trait generation isn’t random. One can predict traits while minting a Monster on the pending block.

The Monders are a group of NFT enthusiasts and developers that reviewed the Nouns project and thought it was brilliant. We give mad props to them, but we also realized Nouns was a project for mostly select whales. We designed the Monsters project so owning a Monster was more attainable and with a simple mission statement of the DAO for curating and collecting blue chip NFTs.

The Monders have chosen to compensate themselves with 15% of each auction and every 100th Monster for the 5 years of the Monsters minted. (Monster ids #100, #200 #300, etc.) These Monster NFTs will be automatically sent to the Monders multi-sig to be vested and shared among the project’s founders and developers. These Monsters while in the Monders multi-sig wallet will retain no voting rights of the DAO.

Secondary market royalties will be set at 5% with 60% passed back to the community treasury and 40% to the Monders. For the Nouns selfless cc0, we the Monders have decided to compensate the Nouns DAO with every 101th Monster for the first 2 years of the project. (i.e, #101,#201, #301, etc.) which will be automatically sent to the Nouns DAO.

Monster distributions don't interfere with the cadence of the auction process. Monsters are sent directly to the Monders MultiSig, and auctions continue on schedule with the next available Monster ID.

The Monders have invested substantial efforts to design a safe & reliable protocol. We leaned heavily on the open source contract from Nouns but also involved our own code changes on a needed basis. We believe that a tried and true smart contract stands against any challenges time has to offer. Our team has been doing its best to create rock-solid contracts for security and is also getting all contracts audited for security.

We have decided to set our contract code to be eligible for a bug bounty and we urge participation from other developers. Meaning that if any developer finds any bug, he/she will be rewarded for reporting soft spots in the contract paid for by the Monders fund. No treasury funds will ever be used for anything other than executed approved proposals.

Eligible users can expect the following:

• Rewards for contract exploits, if a user finds any flaw based on vulnerability.
• We will never threaten or take legal action against good-faith bounty bug participants.
• Powerful co-operation, understanding, and validating your reports. We also include a timely initial response.
• If your report reveals a unique defect or triggers a change in the code configuration, we’re going to recognize and accept your contribution to the project’s betterment.

The Monders sole discretion is related to all determinations, including but not limited to rewards, eligibility, ETH amount, etc. We reserve the right to reject any submission or change the terms of the program.