Fused Hounds: Jail Break Service [Vote]

[Duke]

Summary:

A stockpile of 1698 Fused Hounds are allocated to Serum Corp. Within those are two Megas, three Legendaries and a wide variety of rare assets.

An early order of governance will be to determine their fate.

This SIP suggests installing a periodic service to purchase the Fused Hounds, with 100% of their profits returned to Serum Corp.

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Opportunity:

Benefits for both Serum Corp and the wider Mutant Cartel World IP include:

• Stimulates the community treasury for future community ventures

• Expands the MCW footprint in terms of unique holders and Otherside presence

• Brings further attention and holders to the FH collection

• Creates a recurring marketing event and storyline for project enrichment

• Creates a use case for $SERUM

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GTM:

This should not be seen as a sale, but as a service. A toggleable mechanic that we control the conditions for.

Tailored auctions will be narratively wrapped as “Jail Breaks” and each event will be accompanied by an instalment of the “Jail Hounds” story and its protagonist.

Different windows can have independent narratives.

The UI itself will be themed around bribes, breakouts, and escaping into the Otherside. A narrative runway will progress towards the launch and a post-purchase narrative journey will accompany each Fused Hound.

Sale events (Jail Breaks) are anchored to the staggered arrival of 3D Fused Twins in the Otherside. This makes their position in the market exclusive and creates buyer interest.

Special events may spotlight a pinnacle piece, and future utility with Fused can be attached to auctions. We’ll remain flexible and iterate as demand evolves.

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Funding:

• 100% of the profits will be allocated to Serum Corp.

• Costs would be advanced by Novel Labs and recouped from profits.

• Stockpile: 1698 Assets

• Floor: ≈$180

• Stock Opportunity: ≈$300k

These figures are not indicative of true market value, which would account for multiple variables.

An estimated ≤$10k base has been earmarked to build and promote the successive auctions of Fused Hounds. Novel Labs will provide an overview of where essential costs are incurred, but will include:

• Implementing the platform and its respective UI

• Initial marketing & promotion

• Maintenance and support

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Purchase Windows:

The option to purchase the 1698 will be conducted in public auctions staggered in waves that leave at least one week of downtime. Their initial frequency will be anchored to the production line of 3D traits becoming ready for the Otherside.

We intend on small waves of up to 25 Fused Hounds, but will remain agile to demand and conscious of price movements to floors.

There will be an accompanying option to Buy It Now [Break Out] that will close the bidding and secure the asset.

Purchase windows will follow an English Auction style where bids [Bribes] start low and ascend, with the highest bid winning.

A separate SIP will address the possibility of using existing Fused Assets in exchanges. This SIP is solely focussed on the auction service of the Fused stockpile.

This figure, and all profits, will go to the Serum Treasury.

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Timeline:

• Four weeks to implement.

• Auctions will run for 24 hours.

We will consider the performance of the first window in how to improve future service and discuss this with the Ranked Members.

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Details:

• To be built on a public stage to promote onboarding and new buyers.

• A Rarity Rank [RR] will accompany the Fused Hounds. The formula can be found in the comments.

• Starting Bids and BIN purchases will accommodate the RR markup in their final price.

• Rarity will fall into three categories: Epic, Rare and Common

• Pricing will be designed by Serum Corp and consider the category, RR, recent purchases, and intentions to lift the floor.

• Epic pricing will be determined by Novel Labs and the SSC on a case-by-case basis.

• Rarity will be modelled against the rarity market index of OpenSea.

• Starting bids are placed in $SERUM.

• Direct purchases under BIN can be conducted in $SERUM, $APE, $ETH, stablecoins and fiat.

• A base platform fee of 2.5% will be charged if not using $SERUM. When using $SERUM, this fee will be waived.

• All profits go to the Serum Corp’s treasury.

• All unsuccessful bids are refunded by the smart contract without incurring gas fees.

• Participation in auctions will be rewarded with Reputation via the Hideout.

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Lucky Spins:

Heavily modelled on Magic Eden’s Lucky Buy and influenced by the recent success of ApeChain’s Multi-ball experience.

The Lucky Spin becomes a mechanic that allows you to win a listed Fused Hound without bidding or paying the full BIN price.

• All listings are available for Lucky Spin.

• $APE, $ETH, $SERUM, stablecoins, and fiat are accepted for each spin

Those spinning select a percentage of the full price they’re willing to pay against the odds (e.g. 10%, 25%, 50%).

This percentage directly equals their chance of winning the item. For example, a 25% commitment equals a 25% chance of success.

• Currencies will be fixed to the BIN fiat price, and clear conversions will be provided.

• If successful, the buyer pays only the committed amount.

• Each spin carries a 1% fee on their bet.

• Platform fee waived on bets placed with $SERUM

• There are no limits on the number of spins you can make

• Participating in “Spins” are also rewarded in Reputation

Spins will employ an on-chain randomiser for full transparency of fair conduct. Each spin will generate a transaction log that can be verified independently.

Note: See the Magic Eden Lucky Buy documentation (specifically the EVM section) for reference.

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Success Metrics:

Success for this SIP will be defined by a combination of the following indicators:

• Generating profit for Serum Corp

• High percentage of purchases of those featured in the window

• Expanding the FH collection’s unique ownership numbers

• Number of Spins in the Lucky Spin

• Increasing floor price

• Acquisition of new holders

• Tracking market activity for the FH collection

• Observing footfall and engagement on MCW Otherdeeds

• Seeing a boost in the market activity for Fused Hounds

[azbo]

**Starting price & RR Multiplier simplification. **

Can we explicitly state the exact formula for the Starting Bid and Buy-It-Now (BIN) price. This immediately clarifies that the Rarity Rank [RR] is a simple, publicly known multiplier.

Will the bids start at exactly floor price at the time and then bid up from there towards the (BIN) or is there a chance to get a piece under floor price for example if there’s not much interest in that item.

Starting Bid = Current Floor Price × Rarity Rank Multiplier [RR]

[mooods]

I’ve taken a look at the plan to sell the 1698 Fused Hounds (FH) and see them as more than just a quick way to get some cash. I think they’re a key asset for the DAO’s future. The main question is: are we going for a quick profit that could hurt the collection, or are we using this to make the ecosystem stronger over time? My thoughts are from the perspective of someone who plans to hold onto these for the long haul.

1. Pricing Strategy: Protect Value and Reward Loyalty

   The price we set is the biggest signal we send to the market.

   • Psychological Floor: 0.15 - 0.2 ETH. Anything below 0.15 ETH would be a bad sign, devaluing Fused Hounds that were created at around 0.2 ETH.
   • Think in ETH, Not Dollars: Focusing on dollars hides the real loss in value of the collection.
   • Buy It Now (BIN): Minimum 0.3 ETH, adjusted based on rarity, to set a new valuation baseline.

2. Impact on Long-Term Holders: Avoid a Double Penalty

   The current proposal could hurt the most loyal members while trying to get new ones.

   • Loyal Holders: These are the people who have locked up their assets and followed the creation process. They now hold assets that are hard to sell without losing money.
   • Low-Priced Sale: This drags the market down, making it harder for existing holders to sell.
   • Recognition for Loyalty: Offer perks to those who were in early (e.g., free Lucky Spins) based on how many fusions they completed before May 2025.

3. Timing and Marketing: Build Excitement Before Selling

   We need to market this right before we sell.

   • Marketing First: Announcing a big sale without a clear marketing plan is like dumping assets on a cold market, attracting mostly speculators.
   • Pre-sale Engagement: Explain what we’re doing to make Fused Hounds more appealing before the auction starts.
   • Lore Valuation: Some people are into the story, not just the speculation. A narrative campaign can highlight the existing work and attract engaged members.

4. Technical Mechanisms: Strategic Adjustments

   • Platform Fees: Increase to 10% for payments that aren’t in $SERUM, making $SERUM essential. The DAO can use the fee revenue to support the token price or buy back the floor.
   • Lucky Spins: Offer 1 free spin (25%, 50%, 75%) per batch of FH created before May 2025 for VIPs or based on $SERUM holdings. Adjust odds if paying in non-$SERUM to encourage $SERUM usage.
   • Wave Management: Start with a pilot wave of 50 FH, with 33 used for marketing/platform reimbursement. Have a backup plan if a wave doesn’t sell (pause, price adjustment, or mechanic change).

5. Vision, Transparency, and Post-Sale

   • Financial Success Threshold: Define the minimum profit to consider the operation successful.
   • Transparency: Clearly state how the funds will be used (development, aggressive marketing, acquisitions) to reassure the community.
   • Staking as an Alternative: Stake part of the FH stock to generate recurring $SERUM revenue, preserving asset scarcity and supporting the token.
   • Otherside / MCW Activation: Each FH, whether acquired or already held, could provide a bonus or activation in Otherdeed, rewarding existing holders and stimulating ecosystem activity.
   • Post-sale Program: Turn new buyers into active community members through Discord/Hideout missions, badges, and governance participation.

Conclusion & Revised Recommendations

I’m not against the sale, but it needs to be smart, fair, and strategic, without hurting the loyal members, and done at the right time.

I recommend launching the auction only after:

• A clear, protective price strategy in ETH, with a floor at 0.15 ETH and a BIN minimum at 0.3 ETH.
• A detailed and operational marketing plan is in place before the auction.
• Concrete advantages for those who created Fused Hounds early (free spins, lore rewards, Otherside activation).
• Full transparency on how the funds will be used.
• A significant increase in non-$SERUM fees to 10% to strengthen the token’s utility.
• Defining and getting community approval for a “confidence threshold”: the floor must reach and stay at 0.15 ETH for 7–14 days before the first wave.

This threshold is important because it:

• Protects long-term holders.
• Shows organic demand and renewed interest in the collection.
• Validates the effectiveness of pre-sale marketing efforts.

The go-ahead for this SIP should only be given after we hit this threshold and clarify the marketing strategy, OG rewards, and how the funds will be used. This approach puts the health of the ecosystem and the trust of the members first, while maximizing the long-term strategic impact.

[Duke]

Appreciate the considered input. To clarify, we don’t see this as a quick way to make cash.

Outside of the financial lift that went into this collection, we also dedicated thousands of hours and a significant labour of love in producing them. Our primary goal is to honour them and the community that celebrates them.

We see this as our strongest available opportunity to strengthen the collection and generate funds for the community proposals.

That said, I really encourage this discourse and the points raised. The SSC will progress this review with the Ranks and we’ll find a battle-tested version of the SIP to collectively put to vote.

Some further thoughts from my side to add context and considerations to the conversation…

Pricing / Impact

• The psychological pricing here is based on a desired price and not a buyer reality

• I would consider that by disincentivising new buyers, we are leaning towards diminishing returns within a narrowing group.

• There are other levers in our ecosystem better positioned to reward loyalty IMO, and we don’t necessarily have to conflate that here. The proposals focus is on stimulating the community fund and broadening holdership & demand.

• Greater liquidity and adoption in our experience drives demand.

• A separate proposal could be raised that’s dedicated to incentivising loyalty with lucky spins, Reputation returns, tokenomics, exclusive access, activations, etc.

• In the same vein, an entirely separate proposal could be raised with a plan for the Fused stockpile.

• Andy’s earlier suggestion of starting below the floor would certainly encourage participation.

Marketing & Technical:

• The auction is intended in staggered waves, which allows us to be responsive to improvements with all the variables.

• The nature of them being in waves can position this as an event destination.

• Supporting lore would indeed be a welcome addition.

• The arrival of 3D Fused twins would coincide with at least one of the waves

• I’d welcome suggestions.

Further Clarity:

• Elaborate on Otherside activations mentioned. What / how / commercials?

• What do “lore rewards” look like structurally / commercially / resource wise?

• What would you consider full transparency on funds above what’s been communicated for this specific proposal?

[Duke]

Good points. The RR will be publicly visible in the UI directly and anchored to one of the major marketplace indexes.

Keeping the formula clear and simple will certainly be a focus. I will allow the SSC to expand on it as they’ve played a large part in its design.

Bids below the floor would encourage participation. Driving sufficient attention and interest to a modestly sized cohort would ideally achieve what’s needed. I.e higher than floor.

[avislash]

Formula Breakdown

Each hound’s auction price is derived from its rarity rank, ( R ), which will come from a major marketplace (e.g., OpenSea, MagicEden, etc.), as mentioned by @duke above.
Three price types are defined per rarity category:

• Buy It Now (BIN)
• Starting Bid (SB)
• Lucky Spin (LS)

Each is expressed as a function of the rarity index ( R ).

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1. Buy It Now (BIN) Price

\mathrm{BIN}(R) = B_c \cdot e^{ \beta \cdot \frac{R_{\max}(c) - R}{R_{\max}(c) - R_{\min}(c)} }

Where:

\begin{array}{ll} c & = \text{Category (e.g., Common, Rare, Epic)} \\ R_{\max}(c) & = \text{Maximum rarity rank for category } c \\ R_{\min}(c) & = \text{Minimum rarity rank for category } c \\ B_c & = \text{Base price for category } c, \text{ derived from historical sales and floor prices,} \\ & \phantom{{}= \text{}} \text{excluding outliers (i.e., items mispriced or priced to game the auction)} \end{array}

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Interpretation:
The exponential model ensures that rarer items (lower R) are priced higher relative to the base price, while more common items remain closer to B_c.

This creates a smooth, non-linear price curve that reflects the perceived value of rarity within each category.

2. Starting Bid (SB) Price

\mathrm{SB}(R) = \delta \cdot \mathrm{BIN}(R)

Where:

\begin{array}{ll} \delta & = \text{Weighting factor that anchors the Starting Bid below the BIN price,} \\ & \phantom{{}= \text{}} \text{encouraging bidding competition} \end{array}

Interpretation:
The Starting Bid (SB) is a fraction of the Buy It Now (BIN) price, controlled by the parameter \delta \in (0, 1) .

Lower \delta values create more bidding incentive, while higher \delta values narrow the gap between SB and BIN.

3. Lucky Spin (LS) Price

\mathrm{LS}(R) = p \cdot \mathrm{BIN}(R), \quad p \in [0.1,\, 0.75]

Where:

\begin{array}{ll} p & = \text{Probability weighting factor representing the trade-off between} \\ & \phantom{{}= \text{}} \text{win likelihood and expected reward} \end{array}

Interpretation:
The Lucky Spin (LS) introduces a probabilistic pricing mechanic where users can “spin” for a chance to acquire a hound below its Buy It Now (BIN) price.

The variable p represents the probability of winning. It determines the balance between risk and reward: lower p values offer higher potential discounts (but lower odds), while higher p values increase the likelihood of winning at a smaller discount.

[allegorical-coastlin]

Interesting points here. The level of detail has me lost on key factors. While I understand the desire for a capital raise through assets that are already owned by the corporation, clear messaging as to what it is intended to be used for should be released as part of the proposal so that when the items are available for ‘sale’ or ‘bidding’ there are people who wish to be part of it and willing to pay for the asset. Other than an avatar, some serum/voting rights/membership, what would/could justify a purchase? And, if we are trying to get more faces/new into the corporation, what would draw them in if they are not already part of this great experiment? Interesting to read up on this as the proposal is discussed and voted on.

[knowix]

I want to make it clear from the start that, I’m strongly against the idea of selling the Fused Hounds anytime soon.

The main reason is simple: who are we actually selling to right now?
I believe we’re currently not in a position where we have enough real demand or fresh audience to support such a large-scale sale. And yes, I understand this is a chicken and egg situation we need funds to attract new people, but we also can’t rely on a market that doesn’t exist yet.

In my view, launching a complex auction structure at this stage would only result in moving maybe 15–30% of the total supply, if that. I genuinely don’t think that’s worth the amount of time, coordination, and complexity involved. Especially when the system and the collection itself is already hard to fully understand for someone who isn’t already deep in the ecosystem.

I believe the real future of these Fused Hounds should be about attracting new participants not just selling assets to existing members. To do that effectively, we need to build something that’s simple, clear, and has the potential to go viral on X and beyond. A product or feature that makes people want to join.

Also, in my opinion, selling too early could undervalue the assets and send the wrong signal to the market. We should be aiming to create hype and demand first, and then use the Fused Hounds as a powerful onboarding mechanism when the timing is right. If we can get to something close to the energy and hype we saw around Collar Mint, then it becomes a whole different story but we’re not there yet.

I do appreciate the intention behind this SIP, especially the idea of filling the DAO treasury. That’s a valid and important goal. But in my view, the priority should be building the audience first. Once there’s real demand and excitement, the sale can be much more impactful and sustainable.

That being said, I’m not opposed to allocating a small portion maybe 150–300 Fused Hounds for the current community. But I believe this should be executed in the most simple and frictionless way possible, without overcomplicating the mechanics.

[mooods]

@allegorical-coastlin

Interesting points here. The level of detail has me lost on key factors. While I understand the desire for a capital raise through assets that are already owned by the corporation, clear messaging as to what it is intended to be used for should be released as part of the proposal so that when the items are available for ‘sale’ or ‘bidding’ there are people who wish to be part of it and willing to pay for the asset. Other than an avatar, some serum/voting rights/membership, what would/could justify a purchase? And, if we are trying to get more faces/new into the corporation, what would draw them in if they are not already part of this great experiment? Interesting to read up on this as the proposal is discussed and voted on.

This is exactly one of the points I’m raising in my remarks. With 1,700 pieces, there need to be very concrete actions around the benefits for buyers, but also a clear vision of how the funds will be used beyond simply covering the costs of creating the collection. This is a major issue, and in my view, the best way to measure how receptive people are to the communications we’ll put out is by observing how the floor price moves.
That’s why I’m suggesting setting a higher minimum floor price than the current one. If nothing is done beforehand, or if actions are taken but no one is actually interested, I don’t see how the sale could go well.

[mooods]

1. Common Objective and Context

We share the same goal: to honor the Fused Hounds and their community, while generating liquidity to fund the project’s future and expand the holder base. However, it is crucial to consider the impacts of the proposed choices to avoid negative consequences for historical holders and the value of the collection.

As @Knowix pointed out:

“I want to make it clear from the start that, I’m strongly against the idea of selling the Fused Hounds anytime soon. The main reason is simple: who are we actually selling to right now? I believe we’re currently not in a position where we have enough real demand or fresh audience to support such a large-scale sale. And yes, I understand this is a chicken and egg situation we need funds to attract new people, but we also can’t rely on a market that doesn’t exist yet.”

This resonates with my concerns about the current market conditions and the need to build demand before proceeding with a large-scale sale.

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2. Factual Observations and Issues

Current Situation

• Constantly decreasing floor price: The floor price drops every day.

• Sales mostly in WETH to bots: Transactions do not reflect organic demand.

• Reduced community: The Serum DAO Twitter account has only 1,800 followers.

• Limited engagement: Few members have adopted Fused Hounds as their PFP, despite previous announcements.

Key Questions

• Isn’t the situation of the 1,700 Fused Hounds the result of past choices, particularly the previous auction sale?

• How can we motivate 1,700 people to acquire a Fused Hound if the strategy is limited to a price reduction?

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3. Strategy: Retention vs. Acquisition

Data and Experience

• Customer retention:

  • Improving customer satisfaction by 10% can increase profitability by 30%.

  • Retaining a customer costs on average 5 times less than acquiring a new one.

  • 71% of people are more likely to buy following a recommendation on social media.

  • Loyal members become natural ambassadors, amplifying visibility without additional cost.

• Risks of a price-focused strategy:

  • 79% of collections remain unsold due to lack of retention mechanics or community interest.

  • In the first quarter of 2025, NFT sales fell by 63%, showing that buyers are becoming more selective.

  • Global liquidity has fallen by 63%, and holdings are concentrated in an increasingly small circle.

Concrete Examples

• BAYC and Goodvibes Club: These projects managed to increase their floor price through reward strategies and strong partnerships, without necessarily lowering prices.

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4. Issues Raised

Lack of Perspective and Transparency

• No clear vision: No roadmap or announcements on actions planned to stimulate the market before the sale.

• Insufficient loyalty incentives: Current rewards do not match the investments (time, energy, finances) of holders.

• Limited transparency:

  • Unclear marketing budget (e.g., “10k for marketing” without details).

  • No access to tools (e.g., ODK for Otherside), which limits the ability to propose initiatives.

• Lack of communication: Important messages are often communicated only a week before the scheduled date. For example, the token launch was not accompanied by a complete communication deployment. With a little more information, it would have been easier for the community to prepare and get involved.

As @allegorical-coastlineallegorical-coastline noted:

“Interesting points here. The level of detail has me lost on key factors. While I understand the desire for a capital raise through assets that are already owned by the corporation, clear messaging as to what it is intended to be used for should be released as part of the proposal so that when the items are available for ‘sale’ or ‘bidding’ there are people who wish to be part of it and willing to pay for the asset. Other than an avatar, some serum/voting rights/membership, what would/could justify a purchase? And, if we are trying to get more faces/new into the corporation, what would draw them in if they are not already part of this great experiment?”

This highlights the need for clear communication and a compelling value proposition to attract new participants.

Concrete Examples

• Otherside:

  • Proposed ideas (e.g., token-gated access for quests, community events) but access blockages and lack of information.

• Lore Rewards:

  • Impossible to propose an economic model without a global strategy integrating the economic ecosystem of the Cartel.

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5. Responses to the 3 Questions Asked

Otherside Activations

Many things are possible for Otherside. For example, I have been asking for access to my ODK since the beginning; already last summer, I was trying to get access to test things and then bring them to the Cartel. I still don’t have access, and regarding the Cartel’s Otherdeed initiatives, I have no information. However, I have already suggested the idea of having token-gated access with the Fused that would allow certain quests and obtaining tokens. From day one of Otherside, I said we should come to do our “Mutant Mondays” in the bubbles and increase our presence even during OtherGame events. I have also mentioned the idea of building elements in the Otherdeed to host community events.

Lore Rewards

I don’t have a precise economic model in mind for “Lore Rewards” because, as I mentioned, it is essential to have a global strategy that integrates the entire economic ecosystem of the Cartel. Hence the importance of knowing where we are going, what the roadmap is, and what comes next. Without this vision, it is difficult to propose concrete and effective ideas.

Transparency of Funds

To ensure total transparency, it is necessary to provide details on income and expenses, including amounts allocated to influencers, payments for creations, investments for platforms, and the site. A label like “10k for marketing” means nothing without details. Perhaps by identifying specific amounts for certain things, people will want to offer services at more reasonable prices if it fits their skills. An investment must have a clear return on investment (ROI). Looking at the probable investment in OG Hounds compared to their uses and benefits, it is evident that some choices could have been different.

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6. Recommendations for a Sustainable Strategy

Before the Sale

• Stimulate the Market:

  • Define a floor price target to achieve (e.g., 0.12-0.15 ETH) before launching any auction. This will help to energize the collection and put in place all the necessary conditions for successful sales. The result will be an increase in the minimum initial sale price and will facilitate transactions. It is crucial that this happens, as there is no other viable scenario.

  • Clear roadmap: Announce perspectives, partnerships, concrete utilities.

  • Narrative campaign: Highlight the lore and benefits of Fused Hounds. It is important to note that Fused Hounds in Otherside no longer represent a truly competitive benefit. The Geez arrived first, drawing attention to themselves, and many other small ApeChain collections arrived before us. Even the Zards were there before us. There was a missed opportunity here.

  • Transparency and ROI: It is essential to set measurement indicators for actions and assess potential returns for holders. Votes could even be held with the DAO to validate these indicators. For example, asking holders who have gone through the entire fusion process for their opinion on an initial auction starting price.

  • Stimulate the economy of associated collections: By increasing the floor of Fused Hounds, the entire economy of OG Hounds and Fusing Materials is stimulated. This will bring liquidity through fees into the Cartel’s economy. Currently, the floor of the Awakened is 0.152 for a Canopic at 0.2, which shows an imbalance that needs to be corrected.

During the Sale

• Avoid a floor price: A floor price risks devaluing the collection, discouraging current holders, and paralyzing liquidity. It is essential to maintain a price that reflects the real value of Fused Hounds to avoid these pitfalls. At the beginning of the subject, there is a desire to pay tribute to the work done, the time spent, and to value that. Selling at the floor price goes completely against this vision. Selling at the floor price will mainly benefit people with liquidity, either those who sold during the hype before the crash, or those who hope to profit from a rise. Going from 0.075 to 0.14 is already a 2X for them, whereas for historical holders, we are barely at the creation price.

After the Sale

• Follow-up and adjustment:

  • Measure the impact on the floor and the community.

  • Involve members in future decisions (e.g., SIPs dedicated to retention).

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7. Final Message

Our common goal is the success and longevity of the Cartel. Although my speech may seem direct, it is motivated by a deep desire to grow this community. I am convinced that we can build a sustainable strategy by considering the needs of all members.

[black_coke]

Thank you, Moods, Knowix. I support your initiatives, guys. Honestly, I didn’t expect to hear such important, useful, and necessary ideas for the COMMUNITY here, and looking at you, I still have hope that MCW can make a name for itself again. I’m asking you, guys — don’t give up on your intentions and ideals; they are very important.

[black_coke]

Strategic Proposal for Fused Hounds: Strengthening Floor and Engaging Community

1. First, strengthen the existing value

• Do not immediately release the locked Fused Hounds or hold an auction.

• Focus on increasing the value of the assets already on the market to show that the collection is growing, not declining.

• This creates a healthy floor, attracting OG holders and new participants.

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2. Engage new participants

• Stimulate community activity and attract users to the ecosystem.

• Engagement mechanics: games, lore, activities on Otherside, participation bonuses.

• Ensure that new buyers join for the collection’s value, not just a cheap entry.

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3. Mechanism for increasing and maintaining the floor

• Buy back assets from the market and resell them at a 20% premium above the floor price.

• Funds are split: 50% for buying back other MCW collection assets, 50% for buying back $SERUM.

• This constantly supports the floor and increases demand for the DAO governance token.

• Creates a cycle of value growth: floor increase → higher appeal → ecosystem activity growth.

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4. Do not peg to the dollar

• The minimum price should be in ETH, not USD.

• Goal: protect the real value of the assets against cryptocurrency fluctuations.

• The current floor of 0.056 ETH indicates that the market perceives the assets as too cheap.

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5. Minimum price of 0.15 ETH

• Set 0.15 ETH as the psychological and economic floor.

• Raising the minimum price:

  • Signals the collection’s value,

  • Increases interest from new participants,

  • Makes PFP assets attractive for use in games like Otherside,

  • Supports the long-term sustainability of the corporation.

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6. Do not undervalue assets

• At the current floor of 0.056 ETH, demand is extremely low.

• Selling below 0.15 ETH would be perceived as a “desperation discount”, reducing the overall collection value.

• Protecting the floor and raising the price is a catalyst for long-term growth and trust.

[Duke]

Solid input Knowix. You’re right in that we need to create a wider buyer interest ahead of releasing supply.

We’re certainly aligned in who the ICP here is, and how that will strengthen the wider holdership if executed correctly.

I’d caveat that the size and frequency of auctions have not been determined. We intended them to be smaller and aligned to events. The SSC will help refine these conditions in their upcoming calls.

An event, for example, could anchor the auctions to the release of corresponding traits/forms unlocking for 3D Twins.

Once/If momentum is established with the auctions, they can become a destination event in their own right to market towards.

We will take the feedback on around the steps to create demand, and flesh out the “marketing beats” that frame the auctions as part of the SIP.

Agreed on keeping this as simple as possible. We’ve learnt from previous over-engineering of sales that any complexity is a buyer block.

I believe that if we keep the buyer journey very simple and ungated, then they stand independently strong without the need to understand the wider project:

• Visually strong assets

• Premium grade 3D printable models

• Deployable in the Otherside

• Seasonal token allocation attached

• Intended* playable utility in the Otherside

• The art, community, and events holders gain are no longer marketed as advantages, but for us, I believe they remain our most unique selling point.

I would love to replicate the excitement of the Collars, but this is a different market we’re selling into and what worked then, will not work now.

That said, we have a lot of new materials and novel ideas that we believe can take a swing at it. We’ll flesh some of this out.

[Duke]

Thank you Coke, please raise this token strategy flywheel as its own dedicated proposal. It would be good to dig into this very topical strategy.

For us to better understand your suggestions, can you unpack the tangible steps to achieve these desired results and dig into some of the details.

The desired goal is to “increase the value asset” and “raise the floor” - the proposed steps to get us there are…

[Duke]

There’s a lot to digest there Moods, but thank you for taking the time to share your opinion.

Forums will draw the strongest and often polemical views. We know the role investments play here, but it’s good to see the passion.

How we deliver the feedback and work collectively during this refinement stage will effectively determine the quality of the proposals and outcome of what goes - if it goes - to vote.

___________________

Without veering off course and onto things outside of the proposal, I’ll share some feedback that adds balance and context for the SSC to take this further in their upcoming calls.

Proposal:

• This is a proposal specifically focussed on mobilising the opportunity value in the community owned stockpile of Fused Hounds.

• We are not indicating how the funds would then be utilised. That would be for the community to decide via individual funding proposals with the SSC. The important thing is to create a treasury for the community to wield.

• The $10k is not dedicated to a marketing campaign, but to the construction, implementation, and running of the auctions. Some marketing would be a by-product, but the UI, UX, custom smart contracts, maintenance, ticketing and distribution will play a role.

• The common feedback is that more context on the marketing beats needs to be communicated to generate buyer demand ahead of the auctions opening. This is good feedback and something we will include as part of the refinement process with the SSC.

• There is no suggestion for a large-scale auction. I would advise against it. The size and cadence of auctions could be spotlight sales, flash sales, and staggered over a year.

• We cannot control the variables that guarantee a floor price. We can commit to the inputs that we believe will turn the dials.

Some of the other opinions raised would be well positioned for their own proposals. This would be a good opportunity to present your alternative strategy.

I’m keen to encourage healthy contributions over heavy criticism that turn this corridor into a really strong function. Honest disagreement is a sign of progress after all!

[kukov]

Excellent write-up! I agree with everything you said.

[kukov]

I think trying to auction off the remaining Fused Hounds is a very bad idea in the current NFT climate.

That aside, I see people above are listing “reasons for people to want to buy” and “utility” - allow me to offer an obvious solution that has been right under the Cartel’s noses all this time: Serum City.

I enjoyed the game and think it’s a shame it’s been abandoned. It’s also one of the more concrete examples of utility the Cartel has ever created. It had a decent little userbase that was completely abandoned.

My suggestion would be to get Faraway to hand over all the game assets/control (hopefully this is possible?) so that the game can continue to be worked on by the Cartel. Then within the game bring back Cartel-related utility - but give the biggest bonuses to Fused Hounds. I honestly think this will be better for Fused Hounds, and for the Cartel, than almost anything you can do.

You have something that worked. Make it better, and put it back out there. IMO this is the best use of the Cartel’s time, energy, and resources.

[codeiaks]

we’re all chasing the same outcome which is to refill the treasury, protect holders, and bring new energy in, but the way this is sounding feels like a liquidation plan.

the real question about these 1700 that’s sitting in a vault isn’t how to ‘off-load’ them, its how to turn that vault into momentum. we already have on-chain proof of work, story, and art; what’s missing is the activation layer that makes people care again.

instead of slow, disconnected auctions, frame the sale as vault activation event, a short coordinated release which can be tied to apefest event, that makes every purchase visibly strenghten the DAO. each sale sends a split of funds straight to the treasury, a cut to community incentives, and a cut to a $SERUM buy-back or burn. a live on-chain pool could run during apefest; every wallet that buys enters a rolling raffle where prizes trigger automatically at milestones, e.g., for every 1e in sales, one wallet is randomly selected to win from the pool (eth, $SERUM, or MCW assets, side thought could even make it other projects to attract people in if they floor their winnings doesn’t hurt our collections). it keeps the event dynamic, social, and gives real-time reasons for people on-site and online to participate.

that turns the optics from ‘selling leftovers’ into ‘fueling the next chapter.’ it also gives holders a reason to participate, newcomers a clear entry point, and the treasury a credible way to grow without cheapening what’s already been built.

[black_coke]

We already have MHF on the market, and based on the information I have, demand and liquidity have been close to zero for a long time.
Therefore, the current priority is to create demand here and now, and only after that should we think about adding the MHF that are still in the vault.

This isn’t about just selling more NFTs. The main goal is to create conditions where it actually becomes beneficial for people to buy, hold, or at least participate.

[drdavecoin]

Dr Dave woz ‘ere

That’s the post