The growing NFT sector does not only attract people with the promise of digital goods and the potential to sell them at a higher price than what they paid to buy them — it also brings new people in with innovative solutions to modern problems.
One example of this is the SKC project, which has an interesting origin story, and an even more interesting structure.
What is SKC?
The first thing to note is that SKC, or Space Knight Club, is an NFT project, but also one that is fully DAO. In fact, it is the first, and currently the only NFT project that is fully DAO. It was inspired by another project called BAYC (Bored Ape Yacht Club), and its founder was impressed by the project’s community aspect, back when they first invested in the BAYC token.
BAYC token made people a part of the club, and it truly felt like belonging to it. It gave access to private channels, meetups, and even IRL clubs by proving that the token holder truly owns the keys to a wallet that holds BAYC. This gives the NFT utility, as, without utility, an NFT is empty.
This inspired two main ideas in the SKC creator — the fact that the money from the royalties should go to the community, and that one should be selected to be a part of the private club. Essentially, ownership should not only be about paying.
What is SKC like?
In terms of the project’s structure, there are two things to understand — Community Vault, and DAO.
Community Vault comes from the first of the two ideas, that the royalty funds should be used by and for the community. This is the money that, in the project’s eyes, belongs to the community. So, every sale on the OpenSea NFT market, or some other platform, will charge a 5% fee that will be sent to the Gnosis multisig safe. This money will be inaccessible to the project’s founders, and only the selected members of the community will be able to use it. Even that will only be possible after a specific process through which the community will decide on how the money should be spent.
As for the second idea, in order to understand it, one needs to first understand DAO. DAO appeared as a concept in 2015/2016, with the well-known project The DAO being the first project to attempt it. It stands for Decentralized Autonomous Organization, which is exactly what it sounds like — an autonomous organization with no central authority.
Since then, developers and researchers have discovered many implementations for the concept. Most DAOs these days use tokens, and to be a part of one, people need to own that specific token. The tokens also provide governance rights, granting users the ability to vote on various decisions, changes, and alike.
The more tokens one owns, the greater the weight of their vote. SKC believes that DAOs will be extremely common in the future, especially when it comes to NFT DAOs. NFTs can then be used to prove memberships, control the project funds, submit proposals, and alike. In SKC, specifically, DAO is a way for the community to select how to spend the funds that the project will earn.
There are two layers to the community, with each having its own role.
1st Layer members are known as Spacewalkers, who will own a Spacewalker NFT. They will be able to submit proposals on how to spend the funds at any time, but also browse the proposals and upvote the ones that they agree with.
As for the 2nd Layer members, they are known as The Knights, and they are the ones who will discuss these proposals in their own private club that needs to be selected from existing Knights. If more than 50% of participants agree with any specific proposal, then it will be executed through the multisig safe, and no one will be able to block it.
Finally, in order to become a Knight, one will first have to hold a Spacewalker for longer than its holding period, which will be specified on chain. After this waiting period, users can either stand Trial or get vouched in order to become a Knight. However, the existing Knights will have to approve the newcomer in both cases.
Once the Spacewalker becomes a Knight, two things will happen — they will become the owner of the Gnosis multisig safe, like the rest of the Knights, and they will receive a Proof of Knight, which is an NFT. This POK NFT cannot be transferred, sold, or bought, so only those who earn it will be able to own it.
The project is certainly unique, and there is a lot more to it, which the community will be able to learn and explore even now. In any event, it is proof enough that the NFT sector is continuing its evolution in the most interesting directions, getting new utilities, and becoming a bigger and bigger part of both the crypto and real world.