Less than six months ago, our first member appears in Discord and writes:
How many people do y’all think we’ll need to make this thing a reality?
The vision of winning an NBA championship as a DAO has since spread to over 1300 people in our Discord home, and even more cheering us on from the sidelines.
Krause House is quickly becoming Web3’s home team.
Guided by the wisdom of the late Kobe Bryant, we are striving to be better tomorrow than we were today. That is why we are announcing our very first NFT sale to kick off the next major stepping stone for our community and officially launch our DAO.
The Krause House is opening its gates, and it’s time to get your ticket. Each NFT is a metaphorical ticket into the Krause House, granting you access to our Discord community and events, a special Discord role based on ticket tier, and eligibility for raffles and airdrops. Tickets also come with $KRAUSE to facilitate governance for the DAO, which is outlined further below.
There are 3 tiers of seats within Krause House Stadium. Backers will receive a special edition ticket NFT to Krause House based on their contribution tier. In addition, 3 limited-edition Krause House NFTs will be awarded to the top-3 backers of the campaign.
Future editions will be dropped; however, with different designs and edition numbers as determined by the community.
Contributors will also receive $KRAUSE directly proportional to their contribution, which will allow them to participate in governance of the DAO. Initially, voters will determine budget allocations for seasons on Snapshot, which will be executed on the multisig by the kGuard team. Based on our needs, we will implement more sophisticated mechanisms like bounties, grants, salaries, and token swaps outside of seasons. Our governance is a system of constrained delegation inspired by Yearn's Governance 2.0.
To be clear, we’re selling NFTs for access to our community which comes with $KRAUSE in order to facilitate decision making within the DAO. Neither this ticket NFT nor $KRAUSE are a promise for future ownership of a team. When we put forth a bid, there will be an explicit fundraise of new capital for that bid. This could include KYC and other forms of compliance to accommodate any legal requirements.
The Krause House has a loaded roster ranging from up-and-comers to household names coming from early DAOs, crypto, and investment leaders such as:
Phase 1: Shootaround
Phase 2: Scrimmage
Phase 3: Gametime
Strengthening our community
Ticket Holders will include contributors, fans, patrons, influencers, and athletes, each with different skills and wants. Thus, we are creating a “choose your own adventure” model where different types of participation earn NFTs. These NFTs will form collections that unlock additional benefits. Building, hanging out, attending events, buying merch, and competitions will each offer their own NFTs. These could include jerseys, trophies, kicks, or headbands. Earned NFTs will have unique perks and designs, and different seasons offer limited editions. Perks could include merch drops, NBA tickets, and lessons with elite coaches. We also hope to make these collectibles with a few major PFP NFT projects, allowing you to equip Krause House wearables with them.
Operations & Learning-by-doing
Rushing to place a bid on an NBA team without success running other organizations as a DAO will likely force decision making to centralize and sideline the community. Thus, we need to demonstrate success operating as a collective intelligence.
Our strategy is two-pronged.
One, pursue teams to run franchises in parallel. We plan to launch bids on multiple smaller franchises to learn by doing and demonstrate success. This will likely involve ventures into multiple sports in multiple countries (we’ve had plenty of excitement from football fans). This allows us to experiment in our approach and learn, without a single point of failure. Note, we will not necessarily need to purchase a majority (or even a minority) stake in these teams, as we can act (and have been approached) as a service DAO. We also want to collaborate with non-Krause House individuals and DAOs looking to buy a team as well in an effort to learn and share knowledge.
Two, empower these teams with the tooling, network, and knowledge they need. DAO framework and decision making tooling is rapidly progressing; however, we can both fund and contribute to tooling that we will need to govern franchises. We view this effort as inevitably collaborative with other DAOs, given the common limitations faced.
NBA Ownership & Beyond
With demonstrated success running a portfolio of smaller cap franchises, we believe that the NBA will approve our bid to officially acquire a majority position in an NBA team. We will raise additional capital to put forth either a bid on an NBA team. The legal structures and rights of token holders will be determined based on NBA regulations at that time.
Yet, our journey is not over post-ownership. We have many championship banners to raise in the Krause House. At this point, we have the option to burn IRL trophies and mint them as NFTs, which can be decided collectively. LFG!
With the exception of 2% to our NFT artist, the funds generated from the sale will go directly to the treasury. The funds will be used to both hire a core team, as well as fund more exploratory work through grants, Coordinape circles, token streaming, bounties, tipping and hackathons.
$KRAUSE will have a fixed supply and be allocated as follows:
The Krause House Community allocation will be distributed based on contributions to the DAO up until now, which includes participation in bounties, Coordinape Gift Circles, and contributions.
In a little over a hundred years, the game of basketball has gone from a playground pastime to a $10B/year global business powered by the fans who love the game. We firmly believe that the future of sports franchises will not only allow fans to attend, watch, and support their team, but to own them as well. Franchises become fanchises, allowing fans to participate in decisions affecting the operating procedures including but not limited to ticketing, merchandising, partnerships, and general management. Anything is possible, but this is inevitable.