🤝Rental Service

OVERVIEW

People say necessity is the mother of all invention, and the situation the DKS team found themselves in was no different. One of the key mandates we have in designing the DKS ecosystem to benefit our holders is increasing their exposure to the project communities our ecosystem will service. The plan all along has been to grant limited access to our community to the projects we will service by having them hold a House Signet. However, this mandate presents a fairly large issue: how do we provide signets to clients when all signets are held by the community? After many hours of discussion on this particular conundrum, a simple, elegant solution presented itself that we think will have utility not just for ourselves but also our clients: the Dead Kings Rental Service. Having our clients buy House Signets off the floor was unappealing to us as it potentially creates a constant churn of floor price undercutting and artificially suppresses the market value of House Signets. Additionally, we imagined long-term staking of signets by our clients to alleviate the floor churn, but that potential solution did not address the issue of an already low signet supply. Ultimately, we theorized a rental system that would allow us to lend signets through a rental system that would be supplied by the signets held in Treasury. This solution removes any need for signets to be purchased off the floor, does not lock up signets under long-term arrangements and, most importantly, will eventually allow our House Signet holders to be the future suppliers of signets to our clients via the rental system. Once we are able to get the system set up, tested through the use of Treasury signets and running smoothly, we plan to transition this opportunity over to our House Signet holders to earn rental fees for their signets. In this way, the DKS team has creatively structured the Dead Kings ecosystem to benefit House Signets in a way that is separate from the Dead Kings themselves, which we believe is a superior outcome. We describe this rollout in two Phases below:

PHASE 1

400 total House Signets will be minted with 300 available to the public and 100 to be held in the Dead King Society Treasury. All public House Signet holders will receive proceeds from client onboarding fees we will charge in connection with providing Dead Kings ecosystem services, as long as their signets remain delisted. Treasury signets will not partake in any revenue sharing. Like all new ventures, the Dead Kings ecosystem will require time and testing to create the finished tools we will serve our customers and eventually build a book of business. During these early stages, we will not service enough clients to match the amount of holders who could potentially rent out their House Signets. Therefore, clients will initially rent Signets from the Dead King Society Treasury by paying the pre-established onboarding fee and lock a Signet into a rental account for 2 weeks. After payment is received and the two-week period lapses, the rented Signet will be returned to the Dead Kings Treasury and become available for future clients to rent. All onboarding fees will be collected into a House Signet Fee Pool and be disbursed evenly amongst all delisted House Signet holders with no fees allocated to the Treasury signets.

PHASE 2

Once the Dead Kings ecosystem reaches critical mass in terms of clients served, Phase II can be implemented through renting House Signets directly from our community to clients. House Signet holders would list their NFTs for rent with clients paying a surcharge directly to the Signet holder through the Rental Service, along with paying the regular onboarding fee just like the process outlined in Phase 1. This rental fee is intended to compensate Signet holders for renting out their NFT in exchange for bearing the risk of NFT market volatility since the signet will be locked in escrow for two weeks and will not be available for sale. After the lockup period passes, the original holder would have their signet returned and could then relist it for rent. Signet rentals would also apply to future Throne King Auctions, Dead King upgrades and individuals renting a House Signet to gain temporary access to the Dead Kings community. We believe the Rental Service has great potential and could utilize a large portion of the circulating signet supply. The DKS team will also look to slowly introduce over time the 100 Signets held in the Dead King Society Treasury into the then circulating supply, which will allow us to easily expand the community should there be a significant demand by Solana community’s best and brightest to join the ranks. The DKS team envisions tactically auctioning the Treasury signets to prospective newcomers with all net auction proceeds going to the House Signet Fee Pool. We think this solution is potentially a very rewarding win-win scenario for current and prospective House Signet holders. The DKS team believes Phase II is critical in supporting a long-term incentive for House Signets holders from a value proposition standpoint, as well as creating a sense of personal ownership in facilitating the day-to-day business activities of the Dead Kings ecosystem. We are willing to bet that our holders will appreciate this subtle benefit and bring a true sense of ownership in the Dead King Society’s overall success as a leading project on Solana.