Everything You Need to Know about the Bored & Dangerous Fund Claim: Mechanics, Alternatives, and Timeline
Gm Writer’s Room,
As we move forward with Bored & Dangerous fund claims for licensed Writer’s Room (WR) NFTs and Bored / Mutant Apes, we have a few topics to detail further around how this process will work and what you can expect.
In this article, we’ll cover:
- Bored & Dangerous Fund Claim — Licensing payout amounts and eligible wallets
- KYC Mechanics and Timelines — How it will work, what you can expect, and timing
- Alternative to KYC Path — How the flow for refunds from Azur Root minting will work
Bored & Dangerous Licensing Claim
Before getting into the actual mechanics of the claim, we are proud to announce that, in total, we will be paying out over $356,000 back to eligible licensors in the community! B&D was a creative and collaborative proof of concept for Web3 native media and community-generated content, showcasing how a community could come together, put their IP to work, and create something amazing.
For transparency, below we’ve included:
(1) A breakdown of Bored & Dangerous total P&L over the period of Q3 2022 — Q1 2023, bridging this to the individual B&D license amounts, and
(2) An updated table of payout amounts based on the number of “licensing units” (i.e. the equivalent of 100% of a license agreement) you have. Please note that the table ranges from 50% of 1 “licensing unit” all the way to 100 licensing units for illustrative purposes.
As previously announced, we took a snapshot at 12 pm ET on March 31, 2023 of wallet addresses holding Writer’s Room and Bored/Mutant Ape NFTs that were licensed to Bored & Dangerous.
Said simply, if your wallet held a licensed WR NFT or Bored/Mutant Ape NFT at the time of the snapshot, then that wallet will be eligible to take part in the claim process to open on April 20 (detailed further below in this article).
If eligible, upon connecting your wallet to the site, you will see your licenses as well as the expected total payment amount. Please note we are planning to support normal wallet connection, TokenProof, and Delegate Cash options for your safety and convenience in interacting with the site.
Licensing Claim Alternatives
We previously addressed the requirement to KYC for this process to claim B&D funds in An Update on Bored & Dangerous Royalties, Podcast Licensing, and More. The bottom line is this is something that we are required to do from a legal perspective to keep both the company and the community safe and compliant. It’s not a choice.
That said, after announcing this requirement, we heard all of your feedback and have been working very hard with legal counsel to find another legally compliant alternative for those individuals who may not elect to take part in the KYC path. We’ve found a solution that we believe is a great alternative for those who prefer to waive B&D funds that require KYC.
As such, there will be two courses of action eligible wallets can take with regard to B&D funds during this process.
Option 1: KYC + Claim Eligible B&D Funds
Option 2: Waive Rights + Receive an Equivalent Refund on Azur Root mint
- [10/16/23 addendum] — Option 2 was updated to not include a refund as Azur Roots were ultimately free.
We highlight both of these flows in further detail below.
KYC Mechanics & Timeline
We take the process and trust of obtaining personal information extremely seriously, and as such, we are partnering with Jumio, a leader in end-to-end ID Verification and AML.
Jumio comes highly recommended and has processed over 1 billion transactions, and powers leading companies in Crypto, Fintech, Retail, Travel, Gaming, and more. All data that is collected by Jumio is transmitted and stored with strong AES 256-bit encryption. Jumio is PCI DSS Level 1 compliant which speaks to the seriousness that they take data security and privacy.
Data Security of the Claim Process
Overviewing how this will work and the preservation of personal details, the below flow summarizes what you can expect:
1. You will connect your wallet on our website
2. Our site will issue a unique code related to your wallet
3. Jumio will receive this unique code behind the scenes and will never receive your wallet address
4. Jumio will collect personal information that is stored in their bank-grade secure database
5. Jumio will pass an approval decision back to us based on your personal information and KYC results
The punchline is Jumio will never have a relationship stored between your personal data and your crypto wallet. This means that while we will receive the personal information that we need to process payment to you, no 3rd party will have a relationship between your personal information and your wallet.
Claiming B&D Funds — User Flow
Establishing the security of your personal information is a clear priority for us, and we want you to feel good about the rails in place working with industry-leaders Jumio to keep this information safe.
That said — your main question is likely — “how will I actually claim the B&D funds?”
Beginning on April 20, 2023 and through August 1, 2023, we will open the process to claim B&D funds. If you choose to go down the KYC + claim path, you can expect the following:
- You will connect your wallet to our website
- You will see how much you are eligible to claim
- You will choose between claiming funds and waiving funds, and select to claim funds:
- You will be directed to sign service agreements related to your license
- You will then complete a short survey related to these service agreements
- You will go through KYC — this will include asking for government issued identification and a “face match” liveness check
- If your payment total exceeds $600 you will be directed to complete a tax form via Nextform
- After you clear KYC and complete your tax form (if applicable) — the process will be complete from your side
Once you’ve finished the process with Jumio, your wallet will be eligible to receive the B&D funds via airdrop (detailed below). Leveraging this mechanic means you won’t have to pay gas to claim, and we will airdrop you the funds following the below schedule.
Timing of Payment
The funds will be paid out in batch payments every 2 weeks, with the first round of payments expected on May 4, 2023.
What this means is that if you complete the KYC process with Jumio before May 4, you can expect to receive your eligible funds on May 4, airdropped to your wallet in the form of USDC.
If you complete the process on or after May 4, the funds will be airdropped to your wallet on May 18. And so on every 2 weeks through August 1, 2023.
As mentioned — we plan on keeping claims for eligible B&D funds from Q3 2022 — Q1 2023 open until August 1, 2023, so there is no imminent rush to claim (just ensure you do so before the August 1 end date!).
An Alternative to the KYC Route — Azur Root Refund Mechanics
Hearing the community, we spent a lot of time with counsel looking for legally compliant, meaningful paths for those who may not elect to go forward with the KYC process.
We are happy to announce that we will be implementing a refund on Azur Root mint payment mechanic, where you will waive your claim on funds in exchange for an equivalent refund during B&D book burning / Azur Root minting.
Waiving B&D Funds + Electing Book Burn Refund — User Flow
First and foremost this alternative still requires user action. “Doing nothing” will not automatically result in receiving a refund on Azur Root minting, etc., so please take note of the flow below if you plan to go down this path.
If you decide to Waive Claim on Funds + Receive Equivalent Refund on Azur Root minting path, you can expect:
- You will connect your wallet to our website
- You will see how much you are eligible to claim
- You will choose between claiming funds and waiving funds, and select to waive funds:
- Your wallet address will be captured by Tally Labs and the process is complete for now
- Then, later, during book burning for Azur Roots, you will need to burn your B&D book + pay the 0.08eth from the same wallet from which you waived claim rights
- We will note how much the wallet is owed from waived B&D funds, and after the burn window, you will receive a refund equivalent to the amount you waived claim to
So if you, for example:
- Waive claim to $100 in B&D funds
- Spend 0.08eth burning a book for an Azur Root
- On the day of your book burn transaction, $100 = 0.06eth (this will be taken as the closing price of ETH/USD on the day of your burn transaction via Etherscan)
- After the burn window, you will receive a refund of 0.06eth (resulting in you paying a net price of 0.02eth for your Azur Root rather than 0.08eth, effectively). NOTE: This refund will not exceed the amount you spent on burning books for Azur Roots
This waive + refund option will only exist and be exercisable while the Bored & Dangerous book burn window is open. The dates of the book burn will be shared in the future with enough time for everyone to make an informed decision, and will take place before the close of the claim window.
We are extremely excited to close this first licensing loop of Bored & Dangerous funds with you all, and greatly appreciate everyone’s patience throughout this process.
To summarize — starting April 20, 2023 and open until August 1, 2023, you will have two alternatives with regard to B&D fund claim — both requiring an action from eligible wallets of licensed WR NFTs and Bored/Mutant Apes:
Option 1: KYC + Claim
- Action Taken: KYC
- Complete KYC process with our industry-leading partner Jumio
- Receive funds payout as an airdrop on nearest payout date closest to the completion of KYC (payout dates are expected every two weeks beginning May 4, 2023)
Option 2: Waive Rights (Action) + Refund on Azur Root Minting
- Action Taken: Waive Claim Rights
- Waive claim rights to B&D funds
- Receive an equivalent discount later on payments made during book burn + 0.08eth Azur Root mint period
Our legal counsel has advised that we are unable to designate any specific purpose for unclaimed funds during this time due to the nature of the initial licensing agreements. At some point in time, after an extensive duration, if there are B&D funds leftover that have not been claimed or waived, we will listen to the community for ideas on what to do with the leftover amount.
As always, thank you to the Writer’s Room community for continuing this journey with us, and if anyone has any questions, never hesitate to reach out!
The Tally Labs team