DAO Lifecycle
Vault and mint
The process starts with the careful selection and market-accurate pricing of a rare collectible watch. This watch is then serviced, photographed, and turned into a collection of individually drawn component images by Montro’s team of watch experts and graphic designers, assisted by a drafting technician. After this process it is moved to a secure location (vault) and we set to work creating the DAO contract connecting each watch component to an asset-backed NFT (mint).
NFT sale
Once the mint is complete, the asset-backed NFTs go up for sale on collectibles.montro.com. Here you are able to purchase one or more NFTs from a watch sale at fractional prices of the underlying asset. Practically speaking, purchases are made in USDC from a coupled Metamask wallet.
All USDC will come into the immediate possession of the legal owner of the asset—one of Montro's sub-merchants—who will immediately transfer all proceeds to their fiat currency of choice (typically EUR or USD) as payment for the price of the underlying asset. Thus transferring the proportional asset value to the purchaser of the NFT.
Once you become the owner of your NFT(s), you are free to trade them at secondary marketplaces such as OpenSea.
NFTs transferred to buyers
Asset-backed NFTs are made available for sale through collectibles.montro.com immediately after the mint (step 2: NFT sale). Once acquired through Montro Collectibles, these may then be traded further on secondary marketplaces such as OpenSea.
Voting on duration
Once most NFTs have been sold, asset holders can bring forth a voting proposal. Currently, Montro Collectibles supports one type of voting proposal: the holding duration of the asset. Once a voting proposal has a quorum of participants, each holder is able to vote on the proposal at collectibles.montro.com. Eligible voting proposals will be announced via our various communication channels.
Future collectible DAOs may allow for additional voting proposals to be brought forth, such as whether to sell the watch for a fixed price or sell it at auction, as well as the minimum sale value. The terms for each DAO will be presented on collectibles.montro.com.
Duration ends
Once the duration ends, the treasurer of the asset will be instructed to list the asset for sale on montro.com at a fair market price.
Physical sale
The physical watch sale will be facilitated initially on montro.com. Any sales are guaranteed to happen at arm's length with a price at a fair market value. Currently, this will happen at the discretion of the treasurer; but in the future, these will be based on a voting proposal by the NFT holders.
The fair market value of the watch will take into consideration that it is a Collectibles exclusive watch, and will include a hardware ledger that will contain the private keys to the wallet to which all redeemed NFTs will be transferred.
Deposit of proceeds
Once the physical asset as well as the hardware ledger are sold, the custodian of the watch will convert the proceeds into USDC and transfer these to the appropriate DAO wallet.
Watch handover
Once the sale has been completed and proceeds deposited, the physical watch and the hardware ledger will be handed over to the new owner of this rare and unique timepiece.
NFT redemption
Participants will now be notified and NFTs may be redeemed for their proportional size of the deposited proceeds. All redeemed NFTs are transferred to the wallet of which the hardware ledger is now owned by the purchaser of the physical watch.
Holders of NFTs may also choose not to redeem their NFTs and retain or trade them indefinitely. A mix of redeemed and unredeemed NFTs add value for both redeemed and unredeemed NFTs; as all NFTs continue to relate solely to the one physical watch, despite losing their asset backing.
NFTs exchanged for physical sale proceeds
Once the DAO has moved to the NFT redemption phase, after the physical sale of the watch, the then-holder of the NFT may redeem it for a proportional share of the physical sale proceeds.
NFTs transferred to hardware wallet of watch buyer
These are then transferred into the hard wallet awarded to the buyer of the physical watch.
Redemption period ends
The redemption window automatically closes after six months following the physical sale. At this point, NFTs can no longer be redeemed with the DAO for the physical watch sale proceeds. All unclaimed proceeds are transferred to Montro.
NFTs lose asset-backing and become artwork collectibles only
From this point on NFTs are no longer asset-backed. Nonetheless, all assets from this point onwards can continue to be indefinitely held and/or traded on secondary marketplaces. And some holders, as well as the physical owner of the watch in possession of the hard wallet, may choose to continue trading such non-asset backed NFTs for their remaining intrinsic value relating to its artwork and enduring connection to the watch for which they were made.