Members can give a value to the squad that reflects the assets the squad holds. Prior to an “equity changing” action, such as opening a funding round or paying out a member, it is highly recommended that squad valuations are up-to-date.
How are squad valuations calculated?
Squad valuations are a summation of the following: the total value of Ethereum and ERC20 tokens plus the manual valuation of NFTs. By default, these valuations are measured against ETH.
While ERC20 tokens and Ethereum are easier to estimate market value, NFTs will have to be manually valued by the squad. Typically, a squad will need to update their NFT valuations prior to each “equity changing” action.
How to value NFTs manually
NFT valuations are updated via a single-signer proposal. This proposal can be activated when opening a funding round, during a pay out, or from the “Add proposal” section.
If you have one or more NFTs that needs to be valued, follow the steps below:
From the Squad dashboard, go to the “Proposals” tab
Press the “Add proposal” button
Press the “Update NFT valuation” button
The NFT(s) will be pre-populated by latest collection floor price. If that is not available, it will fall back to the latest valuation price, followed by the purchase price. Values can be modified to reflect the squad’s perceived value of the NFT
Once valuations are complete press “Next,” verify the updated values, then press “Update NFT valuation” button
This proposal is a single-signer proposal, meaning that multi-signature acceptance is not necessary. Once NFTs are valued, “equity changing” actions like funding rounds and member pay outs can be initiated.