Merchandise Proposal

OUTERDEFi is a nonexclusive, cryptocurrency merchandise business that is asking the SushiSwap community for permission to use SushiSwap’s brand assets on various forms of merchandise as well as the ability to advertise within SushiSwap’s official Discord channel.

OUTERDEFi is asking, as stated previously, for the ability to essentially sell and market SushiSwap merchandise. OUTERDEFI is a newly formed business which has received direct permission from three other projects (KnightSwap, THORChain, & SpiritSwap) and indirect permission from three other projects (Astroport, Ethereum, Trader Joe) at the moment. We not only respect intellectual property laws, but we also will be buying back the native token or coin of each project and never selling. For instance, if you were to purchase a SushiSwap t-shirt, 3% of the gross profits (Selling Price-Product-Shipping-Payment Processing) would be going back to the project itself. The percentage can be either 3% or 5% of the gross profits. The percentage depends upon the product.

Within the cryptocurrency merchandise industry there are intellectual property violations. For instance, PancakeSwap clearly states within their documentation that the selling of merchandise with the PancakeSwap logo on it is prohibited yet, according to our calculations, there are six crypto websites that are selling PancakeSwap merchandise.

PancakeSwap documentation: https://docs.pancakeswap.finance/brand
Example of crypto merchandise business selling PancakeSwap merchandise:

We would like to make this clear yet again, but what we are asking for is permission to use SushiSwap brand assets on merchandise, and for the ability to advertise in SushiSwap’s official discord channel.

Why Us?

  1. A portion of gross profits are redirected back into the project.
  2. We respect the crypto project’s intellectual property guidelines.
  3. Prices of merchandise are comparable to that of other projects.
  4. Transparency of the purchasing of native coins or tokens includes the posting of wallet addresses on homepage of website

Why Not Us?

  1. The business is newly-formed and run by a single individual.
  2. The individual has no experience in the crypto merchandising industry.
  3. Purchasing of native coins or tokens is done manually.

Website: https://outerdefi.com/

VOTE
  • ALLOW
  • DISALLOW

0 voters

1 Like

This proposal raises some interesting questions regarding Sushi IP/brand assets. A couple that come to mind:

Who owns Sushi IP? Who should manage IP and brand contracts?

  • My view is that Sushi IP is jointly owned by the token holders. But individual token holders cannot profit off Sushi IP without consent from the community. For this reason I think long-term that IP related negotiations and contracting should be the responsibility of the Core team.

How would we enforce an agreement?

  • Right now Sushi doesn’t have legal status and we don’t have standing legal representation. What would we do if this company/person never paid Sushi royalties? We don’t want to pay a lawyer for that.
  • Would Outerdefi enforce this contract on chain? Would they stake assets that are slashed in the event of sour deal?

Is this the right brand strategy?

  • Outerdefi is asking to franchise our brand for merchandise. I think long-term doing franchise deals is probably better than building a Sushi controlled Sushi. But with the right brand partners at the right price. Outerdefi appears to have low quality merch, low quality website, and hasn’t made good monetary offer (3%).

For these reasons I am voting ‘No’ to the proposal.

1 Like

Responses:

1st Comment: I have been in contact with the team who felt that I should make a proposal.

2nd Comment: I would be willing to completely dox myself if need be.

4th Comment: I ask you to learn more about the crypto merchandising industry. According to your standards, “low quality” would be applied to every crypto merch store given that they in most cases, apply a brand asset to a specific type of merchandise and that is all. Most will not pay for high quality merch given that will come at a higher cost and many crypto merchandising stores do not offer high priced merchandise. Your comment about it being a “low quality” website is an opinion and therefore, I cannot really argue against that other then saying that many individuals within the crypto space have really taken to the website. There are many websites that are of lower quality. Monetary offer is 3% or 5% of the gross profits and we are the ONLY crypto merchandising business that allocates a percentage of gross profits to every project listed on the our website.

Again, and I say this respectfully, but you should learn much more about the crypto merchandising industry.

Thanks.

Yeah I agree with them here. There isn’t a process today, so forum seems appropriate. I referred to long-term

Fair enough, I am not familiar with the merchandise industry in crypto. And I don’t mean to knock your website, I am commenting on partners and being selective.

Treasury revenue would be great for Sushi. Do you have a projection on expected payout for Sushi?

Apologies, I was on the wrong website

I completely understand where you are coming from and a lot of what you brought up is valid and you seem to really want SushiSwap to succeed which I have great respect for.

There are problems with choosing us such as the ones that were laid out by me and by you. However, I believe that we are the best not because of the website or the merch, but because we respect intellectual property guidelines and that we allocate a certain percentage of gross profits back to the project.

Intellectual property violations are WIDESPREAD within the crypto merchandising industry and by us coming to the project itself, is a very positive attribute about OUTERDEFi (if I say so myself).

I held off on making projections given that I have little data and therefore a small likelihood of an accurate prediction. In the future, I might come back and possibly make a proposal again if this one fails and I would provide more information.

I really appreciate you taking the time to converse about this!

1 Like

No problem! If you still don’t like the website let me know what I can fix.

Yes thanks for discussing in the forum. Good to hear you respect intellectual property.

What duration do you propose for the licensing agreement?

Until the life of the store is no more. Those royalty percentages listed are the lowest possible. I wanted a balance between giving back to the project and the price of the merchandise. If I raised the royalty percentage too high, the merchandise might have become too expensive and I didn’t want to do that. I was trying to balance the customers needs with the project’s needs.

It does not feel like an appropriate time for a merch campaign.

While merch can restore brand identity and create easy marketing materials for Sushi, it is often an expensive decision that leads to short-lived materials.

I would encourage you to defer this proposal to when the market becomes more favorable and the treasury is more robust - and your project has seen more development.

SushiSwap is not in the business of creating merch - instead, it is developing bleeding-edge DeFi primitives. I acknowledge the profit opportunity for the DAO but doesn’t seem to be a core priority at the moment.

That’s perfectly understandable. However, I have a few counterpoints (I understand your decision is most likely final, but I would like others to see my response to your objections):

"While merch can restore brand identity and create easy marketing materials for Sushi, it is often an expensive decision that leads to short-lived materials."

Response:

Expenses would be zero for SushiSwap. We handle everything related to merchandise and for that they receive a royalty on every product.

I would encourage you to defer this proposal to when the market becomes more favorable and the treasury is more robust - and your project has seen more development.

Response:

I might just defer it. It really is a sour time in the cryptocurrency space. The project will see more development if given more opportunities though. The website would feel more complete and less empty if more projects were to join in.

SushiSwap is not in the business of creating merch - instead, it is developing bleeding-edge DeFi primitives. I acknowledge the profit opportunity for the DAO but doesn’t seem to be a core priority at the moment.

Response:

It isn’t a core priority for SushiSwap, but that is why they would outsource it to OUTERDEFi.

I really appreciate you listing out your thoughts!

1 Like

I appreciate very much the approach taken with this solicitation, which shows respect to the community.

However, I agree it does not feel like an appropriate time for this, but for different reasons (and agreeing with those stated):

  1. Lack of formal leadership structure (in development)
  2. Posts on this forum such as “need more transparancy in SUSHIswap finances”
  3. I think, no clear precedent for IP protection law in the crypto space - who arbitrates a conflict? with whom or what entity is a contract signed if SUSHIswap doesn’t yet have a C-suite? etc…

I feel it would be unwise for SUSHIswap to enter into a potential legal entanglement with a third party without first having it’s own house in good legal order. I think waiting and reassessing the development progress in 3-6 months would be safer. The SUSHIswap community is making progress in self-organizing after the difficulties of the past year, and it would be a shame for that become derailed, or even unfocused, by a small tangential side effort gone wrong. As I see it, the risks outweigh the rewards for SUSHIswap at the present time. But as SUSHIswap progresses with reorganizational efforts, this proposal could be reassessed periodically for goodness-of-fit with ongoing priorities.

That’s reasonable. Maybe I will give it some more time. Thank you for the elaboration.