RFC: Integration of the network into tangem and production of 500 branded centrifuge wallets (2-card sets)

Centrifuge Governance Proposals
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Uses component: CP2
Author(s): Nikita Eriashev
Beneficiary: Tangem AG, Baarerstrasse 10,Zug, 6300,Switzerland
Date proposed: 2024-04-11
Wallet:

CFG wallet: 4fpQvcAb5oBvosEXo1w78SzdasuD8uCMyTU3eWaYtznJdSFg
USDT (ERC20): 0xf4F8845ceDe63e79De1B2c3bbA395e8547FE4283
or
USDT (TRC20): TE1Kwh5jcWnfW8E2QDUX18QWLNhXi6NZJD

Short Summary

Tangem shall integrate Centrifuge network (EVM) and produce 500 five hundred Centrifuge-branded wallets (2-card sets), discounting their price by 40% and covering the costs of their delivery to the address of Centrifuge’s choosing.

High level objective

Providing Centrifuge community with a secure self-custodial solution and attracting new members from Tangem’s community to the network’s ecosystem.

Background

Centrifuge wishes to introduce a self-custodial cold-storage solution to its ecosystem, while Tangem has unique expertise in and wishes to provide such a solution to Centrifuge in the form of its hardware wallets. Both parties recognize potential synergies emanating from the partnership.

Description of Activity

Tangem:

  • Integrates Centrifuge EVM,
  • Supports the native coin as long as the company exists,
  • Enables support of Altair tokens (possibility of direct swapping in the tangem application in case if CFG, AIR token will be listed on any of Tangem’s swap providers: Changelly,ChangeNow, 1inch ),
  • Helps with the creation of a design,
  • Produces 500 wallets with Centrifuge branding,
  • Provides Cenrifuge with a 40% discount on a bulk order (each wallet shall cost 32.94 USD),
  • Delivers them free of charge to a specified address.
  • Delivery free of charge.

Change or improvement

Centrifuge community members enjoy a secure and easy-to-use self-custody.

Alignment to the mission of Centrifuge DAO

Self-custody contributes to the security of funds. Tangem’s unique backup maximizes protection against scams and other forms of crypto loss. Tangem possesses a huge community, to which Centrifuge will get exposure on social media.

Description of Individual/Group seeking funding

Partnership Manager

Budget

500 x (retail price* - 40%) = 16,470 USD

*54.9 USD

Requested CFG:

Funds Requested: $16,470 (approximately 23,100 CFG using the 30-day WMA price of $0.7131)
Extra Funds (unused) after swapping, if the proposal passes, would be returned to the CFG Treasury in 7 days.

Delivery and Reporting

4-8 weeks from the moment Centrifuge approves the design of the wallet

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Interesting proposal. I’ve heard great things about the Tangem wallet. I would personally love to get a Centrifuge branded one.

What are plans for the wallets once received by Centrifuge? Resell? Community awards? Contests?

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Hi @TheMarcus
Thank you for your comment.

Tangem will provide a lending page where everyone will be able to order a Centrifuge Branded wallet with a discount.
Just for your information. Please note that producing a branded wallet design could be affected by some delay of 4-6 weeks.

The Marketing Team definitely have clear plans for how to use them best. I guess they could be part of swag stuff during the events and conference. But I like the idea of Community awards too.

If this proposal passes we should ask the Marketing Team to dedicate some of these wallets for Community awards!

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Welcome to the Centrifuge community, Nikita!

I am definitely in favor of seeing how this could play out. I believe there was a presentation about the Tangem wallets during one of our regular contributor calls a few months back, and I was highly intrigued.

Looking forward to seeing what the branded ones will look like, as well as other opinions from the Centrifuge community!

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Yes, that is correct Ryan - it was presented in Governance Call 25 in February. Posting the link to where the presentation starts in the call so everyone can watch it if they need more context:

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I have few thoughts that come to mind that this proposal doesn’t answer.

  1. Why does centrifuge need branded cards?
  2. What would the cost be just to integrate centrifuge? Should be rather low since I assume you want us token holders to purchase a card.
  3. Would it support centrifuge chain, the parachain?
  4. Would I be able to use it with the centrifuge app to hold my investment tokens on centrifuge chain?

Ultimately I likely would vote no with my tokens

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My question for this proposal isn’t so much what’s in it but what isn’t; say the DAO purchases 500 wallets, what do we do with them? If they just get shipped to someone to collect dust on a shelf that’s not going to achieve any marketing benefits for Centrifuge. Who would receive the wallets and make sure we distribute them well?

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Hello Nikita,

I also have a couple of questions/concerns about this proposal.

I looked at Tangem’s Twitter and website and noticed you do not have significant partnerships/backing yet. The wallet itself (or, at least, the software is still in the early stages of development, as I have seen some users mention a lack of walletconnect or other networks.)

Tangem also receives little publicity, so I do not think this partnership would be valuable to Centrifuge on that front.

As Lucas mentioned above, there is also a problem of distribution. Even similar partnerships that Ledger did were not always successful in selling and distributing all the wallets, and the target userbase is probably already in possession of a cold wallet they use and trust – be it a Ledger or Trezor.

Now, there is also a question of price. On your website, you sell three cards for 70 dollars at retail price, which suggests that one card is ~23.5$ for retail users. Here, you offer us a “discounted” price of 33$ per piece, and while I understand that there is a cost associated with engraving the Centrifuge logo on the card, that still seems a bit excessive.

Overall, I think at this stage, I would vote “nay” on this proposal, both for the reasons of no marketing benefits, potential distribution problems, the not very apparent “need” of the wallets to Centrifuge community, and potential reputation problems.

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Thanks a lot! We usually rely on the input from the community when preparing the designs.

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As far as I remember, Centrifuge holds regular summits, where they could be presented to participants.

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The retail price of a 2-card set is $54.9. If we apply a 40% discount, it amounts to $32.92. So, $16.46 per card.
Speaking about partnerships, Tangem has an extensive network of partners, among which Kaspa, Tron, VeChain and Shiba opted for their branded versions. We also maintain close relations with Cardano, Chia and Ton, as well as a number of other top networks.
Having multiple wallets is hardly a drawback. Most holders prefer not to put all the eggs into one basket - a piece of advice applying to wallets as well.
The HQ is located in Switzerland. The team is dispersed accross all the continents. Indeed, some management members were born and strudied in Russia. I don’t see any problem in that. Some Russians are talented people. The crypto field is a good testament to that. Frankly, there’s hardly any reason to view them as representatives of a particular nation rather than individuals.
The moral questions aside, world’s leading crypto VC funds, such as SBI and Shima Capital, are among our investors. We’ve been on the market since 2017 and have even partnered with Visa to bring a payment solution to the market. Believe me, the guys in Visa care about their reputation a lot…
The probability that a cold-storage solution will get sanctioned is next to 0. After all, we don’t provide any services, just ensure the private key security.

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As far as I remember, Centrifuge holds regular summits, where they could be presented to participants.

Thanks for starting it off with ideas! I think this is really more something we have to have an answer to ourselves in the DAO. I’d love to hear ideas from other members here. If we have a good use for them, I’m all for it!

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Hi! I am a core contributor on the marketing side of things, so I can give my two cents here.

I heard Tangem’s presentation in the last governance call and was impressed by the tech. I’d probably be interested in the wallet for personal use! That being said, I don’t think the DAO needs to spend $16k of treasury funds on 500 hardware wallets. I don’t think this is something that aligns with our marketing goals at this current time.

The most obvious thing to do with the wallets is to hand them out at our Real-World Asset Summit events. But I don’t think, given the audience we target for these events, that it’d be relevant for us to hand out hardware wallets (we can expect that many attendees already have one).

The price overall is also quite high — way way beyond our RWA Summit events’ free merch budget (for solely comparison’s sake — entirely different budget than the CFG treasury ofc).

The one goal I could see this aligning with is to get more token holders involved in governance, but as far as I know, Centrifuge EVM supporting governance actions like voting is still a ways away, so this wouldn’t be relevant. I would definitely be interested in revisiting this when this is possible however, as it gives us a potential reason to give out wallets beyond just a simple giveaway! For now however, my vote would be a no.

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EVM voting has already been implemented on Subssquare and has been working since last month.

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Looks like this is the perfect moment for revisiting your feedback, because you can vote on Subsquare with EVM tokens.

The price includes integration of CFG and Altair network, apart from the 500 wallets.
With the perspective of having another 3 DEXs for buying, and swapping tokens.

If I remember well the last hard wallet integration with Ledger is still a big pain for all CFG token holders.Since 2022… Isn`t it? :wink:

Also if there are any other alternatives that include all the points described below would be cool to hear.

2023 was an incredible year for us. The year of growth in every single segment and department of our company. We hit 100,000 happy community members in 160 countries all across the world. Tangem was born in 2017, but the Tangem wallet was born in late 2021. So it's only two years old, and we have reached this amazing number — considering the bear market in the last couple of years. On average, every user spends six minutes in the app every single day, so we don't only have 100K happy users; we have 100K active users.

This proposal is not only about 500 hard wallets but much more beyond and includes some points such as:

  • Integration for CFG, Altair
  • +100,000 active users will have access to buy, sell * and hold CFG tokens + vote on Gov Proposals.
  • 500 wallets

This is a treasury proposal and the funds will not be paid by CNF. Also CFG token holders can not vote on this proposal.

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In my opinion its a good opportunity to expand the CFG brand in coming days by issuing these wallets to community like ETH CC or RAW Conference.

This would be a win-win for both CFG and Tangem as both will have an exposure apart towards their products even after the conference which per me would be money well spent than on other activities.

With the proposed budget of 16k it should be a reasonable amount otherwise since also Tangem is getting their brand exposed or marketed during the events or distribution there can be a little bit of more scope for negotiation.

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All fair points! Great to hear about Subsquare report — great start. Onchain voting next would be great :slight_smile:

I would be much receptive of the idea of providing Tangem a lower amount of treasury funds ($5k USD equivalent? to instead integrate CFG alone (and market it with us!) and forgo the wallets. Is this possible?

My post is largely about not seeing the value behind the DAO purchasing 500 physical hardware wallets. However, I do agree it’d be excellent for token holders to have more possibilities for securely storing their CFG.

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This proposal is on the agenda on the governance call today so feel free to ask Nikita about this during the call.

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Hi Devin! Thanks for your reply. I couldn’t agree more with you regarding the need to clarify the purpose with other voters.
There’s one thing I have to point out, however. The arguement that some attendees of the Summit might already have a wallet doesn’t presuppose that another one would be of no use. On the contrary, having a second one would contribute to diversification of their portfolios. After all, it would be unwise to put all the eggs in one basket.
An here we even haven’t touched upon the issue of differences between different kinds of wallets, ease of use and security (in which Tangem excells), as well as controvercies in which competitors have been entangled recently.

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I’ve recently been to Token2049 in Dubai and saw several established protocols like CFG distributing hats and pens at their events. The dustbins at the entrance and even at the airport were full with such kind of merch.
A wallet is not only a great way to increase the sense of belonging among community members, but also a practicle and portable device.

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Totally agree with you. I’ll list other options below, but let me first state something for the record:

Tangem doesn’t make money with integrations. Our average weekly sales from the website amount to 7-8k wallets. Selling 500 with all the attendant extra expenditures on branding and integraition won’t even help us break even.
Our current policy is not to charge for integrations. Offering wallets for sale allows the management to measure the interest in the community and filter those projects that show genuine interest in acquiring a cold-storage solution for their audience. It serves as a litmus test enabling the team to find out if the partner is serious exercises due faith.

We could forgo branding and produce 300 standard Tangem 2-card sets with stickers on the box instead.

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The price of a unit would still be discounted by 40% and amount to $32.94 ($9882 in total).
By the way, we handle the logistics and custom fees, which saves our partners $3.5k+ depending on the destination).

1 Like