[DRAFT] [GF: PHASE 1 Proposal] Zonic

I think this project deserves an OP grant. I just Vote “Yes”

The fact that your marketplace weakness by not Indexing the blockchain data sales and showing the total volume for each collection did gain is not a feature, even opensea Includes total volumes generated from all other marketplace, and it’s not missleading, I guess everyone do wanted to know the total volumes generated, and you can also shows on the sales on which marketplace the transaction is, it’s not missleading, it is informative, and in my opinion people do want to know what they about to buy, so information is good, like how much the collection wash trade scored is also good, so people will avoid that fake hype and buying a real value.

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I wonder if other marketplaces exclude wash trade data that happens on other sites. Would it be acceptable to display the washed trade volume on your favorite site since it’s happening elsewhere? =)

We actually have all the data collected since we built everything from scratch. However, we decided not to include volume from others that might confuse our users into thinking our site is more popular than it actually is. Everything is super transparent, and we even have an Insights page that allows everyone to check what’s happening on our platform. We don’t want to deceive our users. It’s our code of conduct.

We appreciate healthy competition rather than discrediting and continuous attacks from our rivals, as this does not help the ecosystem and can be destructive. Thank you.

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It’s appalling to think that someone believes it is okay to fabricate metrics and feel it is an acceptable way to earn a grant. This type of trading behavior does not align with the ethos of optimism network.

Please provide examples on how this will benefit the ecosystem in the long term with metric data or research documentation that has proven your theory correct.

The point is not whether the data is included or not… It is how you use the data. In this case you have obfuscated data to make it appear that there has been organic traffic and high trading volume.
Rather than enlightening us about the wash trading. It is not transparent by any means.

The conversation appears to be leading us towards the issue of wash trading, and everyone seems to be narrowly focused on this rather than seeing it as just one part of an experiment.

While we are committed to not supporting wash trading, we also recognize that it is a necessary part of the growth experiment. Opensea, Blur, Lookrare, and X2Y2 all had to pass through this phase, which enabled them to grow sustainably to where they are today. However, they did not experience this phase on L2, which has left L2 comparatively underdeveloped.

Even if we claim that we won’t engage in wash trading, it is inevitable that it will occur. Every new marketplace goes through this phase, but the data collected from these experiences will help the ecosystem understand the best path forward.

We have carefully considered our proposal to achieve the goals from both a visionary and practical perspective. We believe that we know what we’re doing, but we need to run a series of experiments to boost the growth of the overall ecosystem. If you take a look at the current state of the NFT marketplace, you can see that the market is suffering due to the conflict between Blur and Opensea. Small NFT marketplaces cannot afford to run these experiments.

We are perfectly fine if the committees do not accept our idea, as our goal is to use the funding to boost the NFT ecosystem on Optimism in the long run. If they do not agree with our proposal and the experiments we plan to run, and deem it not worth the OP funding, we will accept their decision without any problems.

We see this as a mutually beneficial business deal. If the OP side does not see how it benefits them, then the deal will not happen. However, if they do, we will spend the OP funding wisely to support growth.

In conclusion, we believe that funding for a “Growth Experiment” is precisely what is needed at this time.

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“The first 100 accounts with an all-time trading volume of 1 ETH will receive 4 Gift Boxes as a reward!”

This is the initial promotion that was ran on Zonic to create volume on 02/13/2023

I see a few days later there is 125 ETH volume on 02/16/2023.

I am now wondering if any of the volume is organic or if it is purely artificial. This method does not entail the purchases were authentic NFT purchases and the only reason wash trading occurred was to receive the gift boxes but there was no sybil resistance in place.

Here is the concern.

  1. Wash trading allows the gamification of OP token rewards distribution and does not ensure the distribution is made to new users of the network due to sybil attacks.

  2. Artificial volume occurring appears to be primarily from wash trades encouraging users to gain ZONIC rewards once again without any sort of system set in place to protect from sybil attacks.

  3. Wash trading and allowing the creation of alternate accounts to receive funds from a rewards program does not ensure the tokens will not be misappropriated.

It would be easy for a member of the team to disguise themselves as a wash trader in order to receive part of the grant indirectly to avoid the no sale rule.

You should distinguish between incentive program and wash trade.

An incentive program for NFT buyers may refer to a marketing strategy that encourages or rewards buyers for purchasing ,holding NFTs or continuously use Zonic everyday. These programs can be used by NFT creators, platforms, or other stakeholders to incentivize demand for their digital assets.

As you said many people try to trade NFT on their own.That because they want to done a Zonic Quest (One time Quest, Daily Quest) and this is a lowest cost option.

But don’t forget that They have to pay a 2.5% fee to Zonic marketplace. This means that the volumes in question, which are generated from the trading of NFTs, are a result of the incentive program. And Zonic returns this collected fees back to users as rewards in Zonic gift boxes.

Zonic have certain conditions to prevent sybil attacks.
• Number of days to be used continuously for sybil attacks more 40Day++ than regular user
• Daily Quest cost 2.5% Fee in Trade quest type
• This does not include the gas you have to pay every day.
• I’m sure the conditions will be even more difficult.

Another thing is Zonic build up with solo developer @nuuneoi I saw his efforts to build a good Community and Economy on Optimism.I hope you guys will give Zonic a chance to try.

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cool , great work well done

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i agree with your opinion.
zonic is a great project on the Optimisim chain that will provide a NFT market.

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Agreed. This seems of interest for OP.

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I would love to see this because Optimism needs it’s own solid marketplaces. With Quix going down a lot of projects that had high floor prices went down because most of them were only on there and Opensea. This plus 2 other platforms currently being developed for will ensure Optimism’s NFT ecosystem is thriving just as much as Ethereum’s.

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Looking forward to collaborate with your project and community! Your Zonic NFT Marketplace makes me wonder on your development and cost optimization skills.

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Looking forward to work with you too! I believe that there are plenty we could do together for Optimism ecosystem! :heart:

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Hello and thank you for your proposal! Throughout the application process, this forum thread will be one of the official means of communication. Please be sure to monitor it for updates over the course of the review period.

At this stage, applications are mainly being reviewed for completeness, and nothing at this stage should be construed as support or opposition by any members of the Grants Council.

We recommend as much specificity as possible, as the community will judge the effectiveness of the grant plan on its ability to deliver on these. Including timeframes to achieve milestones is important, and will be very helpful in judging these.

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Hi @nuuneoi!

It’s Michael here from the grants council. Just as clarification, when looking at your website it seems like the gift boxes are based on cross-chain points earned. For the OP rewards, are these optimism-specific quests or are these any-chain quests?

For example, is it possible to complete the quests on a different network (arbitrum) and still get the OP rewards in the gift box? Or will the OP reward system be a completely new system that is Optimism-specific?

Thanks for the clarification!
Michael

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Hi @Michael, thank you for your inquiry!

The concept is that each season of the Zonic Quests will have a specific objective. The current season (Season 1) aims to promote Zonic as a multi-chain NFT marketplace, which is why the current quests are designed based on a multi-chain approach.

Season 2 is currently in the design phase as we need to analyze, adjust, and enhance the campaigns based on the outcomes from Season 1 to ensure that the Quests are effectively boosting activities. Our plan is to make Season 2 Optimism-only quests if the OP grant is approved, and we will only award rewards to individuals who complete an activity on Optimism.

We can make a commitment on this matter as we consider the OP grant as a budget for conducting a growth experiment on Optimism. Therefore, we will not reward users for activities on other chains since it is not the intention of the OP grant.

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Good :blush: luck :four_leaf_clover: to you and your team on the proposal here.
I see you are aligning OP here on the way the grant distribution works and feel that is very important.
Thanks for all your hard work.

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