DAO Envelop’s open letter to the cryptocommunity

In recent months, DAO Envelop has faced FUD from a number of contributors who are trying to one-sidedly make the situation look bad and discredit the project. In particular, there have been many questions regarding the decrease in liquidity and the suspension of trading on CEXs.

In this letter we want to tell the community:

• about the current situation;
• about the team’s work in the most effective ways in relation to budget optimisation;
• about the main priority — the survival of the project;
• about the fact that the team is not just keeping promises, but intends to keep them in the future;
• that we are willing to deal with token matters. But liquidity, bidding, and other token-related questions do not fully reflect the performance and success of the project. There are other tasks that directly affect the effectiveness of tokenomics.

CEXs Gate.io, AEX, ZB.com became the DAO Envelop contributors on IDO and IEO , so NIFTSY token was added to trading on those exchanges.

The ZB exchange did not trade the NIFTSY token by mid-2022 because it had been hacked. In the summer of 2022, the management of the AEX exchange began to have problems with the authorities, which resulted in the withdrawals being blocked. Thanks to the team’s early decision to migrate to DEXs, it was possible to secure some of the project’s liquidity and tokens. Otherwise, these funds would have been blocked on exchanges.

A number of independent experts tested trading on the exchange Gate.io, which showed that trading was carried out outside of the initial agreements. In particular, trading of short positions was monitored. This can be seen on the history, where you can see the difference in trading volumes on this exchange compared to others. Therefore, DAO Envelop made a decision to suspend trading at Gate.io.

At the same time, the team, on its own initiative and at the cost of funds raised, has repeatedly organized the adding of liquidity for trading NIFTSY on DEXs Uniswap, PancakeSwap, QuickSwap. This approach has not received the necessary support from the community, so at the moment it was decided to keep the current liquidity.

Unfortunately, DAO Envelop actually received no informational support after December 2021 from the initial contributors and partners, which violated the original agreements to help the project.

The exceptions were Animoca Brands and WaterDrip

Also note that all this is happening at a time of the worst crisis in crypto. According to a recent report, 9,564 people were laid off from the digital asset industry. This is reportedly the highest number of annual layoffs in the industry.

An updated list of layoffs in all areas of the market can be found here: https://layoffs.fyi/

Moreover, on January 6, 2023 @WuBlockchain reported that Cryptocurrency exchange Gate.io started layoffs. According to employees, it will affect 40% to 50% of the staff.

DAO Envelop is trying its best to optimize costs and provide not only the availability, but also the development of the project. Therefore, as part of this trend, it was proposed and realized:

• reduction of costs for the Yotube channel (transfer to a contractual ( piecework) basis), which remains the largest among the competitors;
• CMO of the project was transferred to the status of an Ambassador;
• distribution of liquidity among the most active members of the development and busdev teams.

We should separately note that DAO Envelop not only works ahead of the initial roadmap, but also launched a number of products, services that help develop the basic protocol, such as:

• Oracle wNFT;
• Cross-NFT, which puts into practice one of the many use cases of the Envelop protocol;
• SAFT, used back in 2021 by Animoca Brands and distributed today by the busdev team to hundreds of foundations of various sizes.
• The Envelop ecosystem is a standardized product that can be found on multiple platforms

At the same time, products are deployed in different chains and supported by major industry players, in particular: the project was added to the ecosystem of Binance, Polygon, Harmony, Swarm, Near. Implementation into WAX and Zilliqa ecosystems is also in progress. Integration with ZkSync, Arbitrum is planned for 2023.

The more products DAO Envelop tests and deploys, the more utility the NIFTSY token has.

DAO Envelop is not just being judicious about the fund of liquidity received and tokens issued, but is doing so in the most efficient ways possible. The following are key cost-cutting measures in light of ongoing unfavorable market:

1. In order to ensure the project’s continued operability and development, it was necessary to promptly revise the existing financial management model without compromising the reliability and security of the infrastructure. As a result of the measures taken, it was possible to halve the total cash burn rate (ratio of funds to monthly operating costs), thereby ensuring the financial sustainability of the project for the next 2 years. Ignoring the current economic situation or delaying measures would have meant that the project would have stopped operating in the near future.
2. The team succeeded in increasing the efficiency of funds and reduce costs not only directly (through the payroll fund), but also indirectly:

• tries to make the best use of the bounty campaign to attract new users and test services;
• makes bonus payments exclusively from sales of services in the b2b market;
• does not use unnecessary technical or other services;
• Spending is monitored at dao.envelop.is, and the page is constantly improved (with our own Oracle). More information can be found in the DAO reports in pdf-format.

We would like to highlight that our vision is in accordance with the long-term bear market. This approach allows DAO Envelop to focus not on speculative practices, but on truly interested users. This can be seen in the growth of contributions, token holders, the increase in the number of NIFTSY tokens locked in farming, etc.

Speculative token trading has never been declared by the team, because it contradicts the logic of SAFT-agreements and the very nature of NIFTSY: it is a purely technical tool that links the Protocol, Oracle and the Index into a single DAO.

Therefore, DAO Envelop’s strategy for 2023 is as follows:

1. Focus as much as possible on releasing all the products that will help grow the client base for Protocol, Oracle, and then for Index.
2. Run many independent tests and audits to ensure that the products meet the highest standards of open source development.
3. Implement ways to purchase NIFTSY tokens to increase its utility even more:

• introduce payment aggregators,
• improve Launchpad sale,
• build an OTC-platform,
• sell several more NFT-collections among the community,
• make airdrop according to the tokenomics among the most active participants of the community.

At the same time, DAO Envelop will consider any pressure on the NIFTSY token as an attempt to forcibly change DAO’s initial development strategy and, accordingly, will take appropriate (symmetrical) measures to protect its honor and good name.

We are infinitely grateful to our entire community. Your support never stops encouraging us to keep working hard. We will not rest on our laurels, and encourage everyone to be more active on our social media and in using our dApps!