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Best Practices
Here are some best practices we see successful collectives do!
There isn't one perfect method to manage a Vault. Although we can suggest some approaches, each team is unique. Therefore, we focus on offering flexibility, so you can customize your approach to fit your collective's needs.
Learn more about Lore Use Cases here!
Before assembling your collective, establish a clear end goal or mission. This will unite your initial members under a common belief and attract like-minded individuals if you plan to expand your collective. Additionally, having a clear mission will help guide your team toward success.
- Shared Mission: This is the reason why your collective exists. It could be to support a cause or ecosystem or collect community artifacts representing your shared identity. It's important to communicate this clearly to potential members.
- Financial Missions: Specify the return-on-investment (ROI) goals, time horizons, and exit strategy. Decide on the percentage of ROI you want to achieve before selling your investments and determine the point at which you will sell your assets and distribute funds to members. It's best to establish these details upfront or agree on figuring them out later.
Sharing an open Funding Round or an open NFT Purchase Proposal can create a lot of engagement and momentum in your collective.
Exciting things happen when you activate your Vault, but the real fun starts when new members join and get involved in your first transaction. Aim to collect a specific NFT or join a community mint event as soon as possible to strengthen your team. This will create some buzz and momentum for your collective.
To buy an NFT, you'll need some ETH. You can get this by doing Funding Rounds with your vault members. Just let everyone know what you want to buy with the money so they can get excited too.
If you've all agreed on a specific NFT, you can add it as a purchase proposal and share the page with your group chat. It's a good idea to open a Funding Round before you do this to start raising funds immediately.
In your Vault, each member can have a specific role. For big collectives with more than 20 people, limiting the number of Signing Members to around 15 or fewer is best. This way, not too many people can access the funds, and you can keep things more secure. If someone contributes money but doesn't need to access the funds, they can be assigned as a Non-Signing Member and still own a part of the fund.
An active member who likes to suggest and vote on ideas, you should be a Signing Member. But if you prefer to contribute money without getting too involved in decision-making, you can be a Non-Signing Member.
Learn more about member roles here!
Before making any purchases, it's a good idea to decide on the requirements for the investment. The most crucial factor in agreeing is how many members must approve a buy or sell transaction.
No matter how big your collective is, Lore suggests having at least two signers but no more than five. It can be risky if you have too few signers, but if you have too many, it can slow things down.
Lower thresholds work better than higher ones for operating your Vault. Having more than 50% of all members vote on every transaction can slow down your Vault, especially in fast-moving NFT markets. Successful Collectives discuss investment opportunities and make decisions off-platform on their messaging thread.
Popular off-platform decision-making mechanisms include Discord emoji voting and Telegram polls. Voting mechanisms can be customized to each Collective's preferences. More info on choosing a Signer Threshold is here!
Vaults are friends and communities who discuss NFT investment opportunities like buys, sells, and mints. You need a platform for your Collective to communicate effectively to keep everyone in the loop. Here are some options:
- Discord: It's the go-to for web3 communities, and we automatically set up a private Discord server for your Collective. But it's best to create your server.
- Telegram: It's like a smaller version of Discord, and you can create group chats for your Collective and do simple voting and event management.
- Discourse: It's a forum for longer conversations within a community. You can use it with your Collective's group chat, Discord, or independently.
Last modified 7mo ago