Phase 1 Bugz Allocation: What It Takes to Get In 🐛

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UNVAULT
@unvaultSep 11, 2026

The Spaces convened Unvault co-founders Aaron Haber and Ernest Lee to outline Phase 1 “Bugs” allocation, Unvault’s royalty-enforced, cross-chain marketplace, and the philosophy behind moving the NFT space beyond free-mint farming and PvP dynamics. They confirmed new partner collections (e.g., Imaginary Ones, Clay Stonks) and clarified how Phase 1 buckets work, why Bugs is a free mint for regulatory reasons, and what it takes to get in: courage to diverge from the freemint meta, alignment on creator royalties, and active participation. They detailed Unvault’s patented cross-chain vault/unvault mechanism, LayerZero-based architecture and security hardening, and the Divot (a compliant marketing rewards system) plus Minter’s Bonus that return value to originators and minters. Unvault will enforce royalties on all chains/marketplaces (with incentives to block non-paying OTCs), offer KYC-gated Launchpad protections, and ban mid-mint price increases. They discussed allocations recalibration, unauthorized wallet removals, echo 721C contracts to restore royalties for legacy collections, and a pragmatic stance on multi-chain payments and transaction speed. The session closed with debate on exposure vs. royalties, OTC risks, and Unvault’s aim to provide real distribution and first-mint advantages for Bugs holders while building a healthier, multi-chain NFT economy.

Unvault Space: Phase 1 Bugs Allocation, Royalties, Cross‑Chain, and What It Takes to Get In

Who’s who and context

  • Host: Aaron Haber (co‑founder, Unvault). Co‑host: Ernest Lee (co‑founder, Unvault).
  • Date/time (as stated): Thursday, Sept 10, ~11am. Regular weekly cadence.
  • Participants called out by name/role during Q&A and discussion:
    • FFV (collector/builder; long‑time participant)
    • DOC (technical founder; security/compliance questions)
    • “Host” (community member; film industry background)
    • City of Stonks (builder; wallet visualizer/interoperability focus)
    • Hashman (community; allocation mechanics)
    • Shields (founder; launchpad abuse prevention)
    • Lady Blue (creator royalties)
    • NFT Drew (technical/history of 721/721A/721C and royalties)
    • Project partners referenced: Imaginary Ones (Danny present), Clay Stonks (Bourbon), StockBrokers, CyberKongz, Degen Network (Cap), Base Minis, Mars Cat Voyage, First Class Frenchies, “Dong Socks,” among others; Blowies (upcoming mint on Unvault).

Core thesis and agenda

  • Title focus: Phase 1 Bugs allocation; the broader state of NFTs; what it takes to be included.
  • Aaron’s stance:
    • The space has too much PvP, a self‑defeating “carousel of knives.”
    • Free‑mint meta emerged from drying liquidity and trust collapse, then ossified into a farm‑and‑dump game as major marketplaces rug‑pulled royalties.
    • Unvault’s objective: restore value alignment across the stack (founders, artists, collectors, minters, traders, and even chains) and enforce creator rights.

Unvault product model and why it exists

  • Royalties and creator rights

    • Unvault enforces royalties across chains and marketplaces on its platform; collections can also blacklist non‑paying platforms via 721C‑style controls.
    • Philosophy: creators should choose whether to receive royalties; platforms should not unilaterally remove them.
    • Practical economics: a healthier ecosystem (royalties + aligned incentives) benefits all participants more than squeezing a few extra bps per trade.

  • Cross‑chain vaulting/unvaulting

    • Patent‑pending system for vaulting/unvaulting across chains; preserves provenance and lets collections unify liquidity irrespective of chain fragmentation.
    • “Echo contract” approach: for legacy 721s without 721C enforcement, Unvault can deploy a 721C “echo” on the origin chain. Holders can migrate (without burning originals) to gain perks (e.g., Divot eligibility), while provenance remains intact across contracts/chains.

  • Divot (marketing rewards) and Minter’s Bonus

    • Divot: a compliant mechanism for collections to allocate a portion of royalty revenue (or other revenue) to a pool that rewards holders for ecosystem‑positive actions (e.g., marketing posts). Designed with counsel to fit within existing law/Howey and anticipated Clarity Act contours.
    • Minter’s Bonus: additional benefit granted to Bugs holders when minting participating collections; set by the collection, can change over time, with social pressure to maintain/improve.

  • Business stance on IP and compliance

    • Not open source; Unvault has engaged top patent and crypto compliance counsel and invested heavily (multi‑audits; ~2 years full‑time; >$500k direct spend).
    • Patents: 156‑page filing for the cross‑chain vaulting/unvaulting method; Divot approach patent‑pending as a marketing rewards distribution method. Details and initial filing link are in Unvault’s whitepaper; several continuations pending publication.

  • Security and infra

    • Messaging: built with LayerZero; Unvault clarified recent “hacks” were misconfigured project stacks (RPC/relayer issues), not LayerZero itself. Unvault doubled verifiers/relayers and hardened configuration accordingly.
    • Payments/conversions: Particle Network and Thirdweb abstract payments and convert to the origin chain of the mint in the background.

  • Fees and trading economics

    • Unvault marketplace fee: 0.5% (vs. 1% on OpenSea, per Aaron).
    • For Unvault‑deployed contracts: an additional 2% protocol fee exists broadly, but trading on Unvault reduces that to 1% on its own platform (net trader savings of ~1.5% vs. executing the same trade elsewhere on an Unvault contract).

Bugs: what it is, why free, and how Phase 1 allocation works

  • What is Bugs?

    • Unvault’s genesis pass to bootstrap a healthier minting flywheel. Primary utilities: mint first at participating launches (if the project opts in) and receive Minter’s Bonuses unique to Unvault.
    • Core goal: provide founders with a ready, engaged minter base; provide minters with early access and bonus value; catalyze a positive‑sum mint economy.

  • Why a free mint?

    • Regulatory/compliance posture. Bugs are framed as a rewards program; free mint is the prudent path while distributing future rewards to Bugs holders. Aaron openly dislikes the free‑mint meta but accepts this one exception for compliance.

  • Phase 1 allocation mechanics

    • Bucketed allocations by partner collection/group (“buckets” per community). Example: StockBrokers have the largest allocation but still FCFS within their bucket; no one is guaranteed.
    • Numbers not disclosed and dynamically adjusted based on partner activity/need; some buckets can be revised up/down as conditions change.
    • Certain partners (e.g., with hard staking) provided wallet lists directly (Aaron cited CyberKongz and Imaginary Ones as examples).
    • The team discovered ~<200 wallets submitted via a leaked private form link without approval; those will be removed after cross‑checking to avoid mistakes. Otherwise, no random pruning.
    • Supply vs. over‑allocations: Unvault refuses to “over‑allocate” in the classic sense. After final wallet accounting, if allocations exceed the current supply (Aaron cited a working figure of ~5,000 spots during the discussion), total supply will be raised to match counted allocations. Expect transparency on the logic, not the raw bucket numbers.
    • Phase 2: opens to a much broader audience (Aaron joked “the population of the earth”), with Phase 1 minters eligible to mint again.

  • Expectations for Bugs holders

    • This is not a WL‑farming play. “Gib” DMs/posts are discouraged and deleted; engagement should be value‑aligned.
    • The success metric is not Bugs floor price; it’s how decisively Bugs mint out partner launches (speed, participation). A strong minter flywheel draws more quality projects and compounding utility.

  • Mint chain and speed

    • Purchases/mints can originate from multiple chains; conversions settle to the origin chain of the mint. Faster chains might confer speed advantages in contention scenarios. Aaron stated Bugs will mint from “Robin Hood” (as said) and acknowledged they had initially intended not to disclose.

  • “Bugs first” policy

    • Aaron frames himself as the “agent” for Bugs in launch negotiations: best‑practice recommendation is Bugs go first, OGs honored, then the rest. If a project refuses and wants to put Bugs behind GTDs/other groups, Unvault may decline that arrangement to maintain Bugs’ primacy.
    • Some special collections may gain Minter’s Bonus eligibility (e.g., Blowies), but never ahead of Bugs.

Partnerships and pipeline highlights

  • Newly announced/confirmed partners during the session:
    • Imaginary Ones (Danny present).
    • Clay Stonks (Bourbon; hand‑sculpted traits; now “official”).
    • Degen Network (Cap; small collection; Aaron hinted at a very high allocation).
    • Ongoing/earlier partners referenced: StockBrokers (Divot/Anvil live), CyberKongz, Base Minis, Mars Cat Voyage, First Class Frenchies, “Dong Socks,” more on the Bugs page.
  • Blowies (upcoming Unvault mint):
    • Lore: dolphins from the swamp outside BAYC, disguised as apes.
    • Tech: ERC‑6551 token‑bound accounts; has an Anvil pool; minter’s bonus + divot enabled.
    • 10% “killer whales” can “eat” dolphins to earn extra rewards (gameified mechanic).

Market critique and culture

  • Why free‑mints took over: liquidity dried up; trust collapsed (rugs); marketplaces removed royalties; founders pivoted to free mints to drive attention and rely on royalties—then royalties were rug‑pulled mid‑stream.
  • Today’s stance: unless there’s a principled/artistic reason, founders should price mints—Unvault’s Bugs provide an engaged minter base; liquidity shouldn’t require freeminting.
  • Tribalism/chains: chain fragmentation (~175 chains) is a deadweight loss of distribution; Unvault’s cross‑chain design is chain‑agnostic, focused on the collection first, not its chain.
  • “Gib”/WL farming: strongly discouraged. Expect value creation, not extractive behavior.

Compliance, patents, and open questions

  • Patents and legal posture (Ernest Lee):
    • Cross‑chain vault/unvault patent; Divot marketing‑rewards mechanism patent‑pending. Initial filing is linked in Unvault’s whitepaper; several continuations pending.
    • Two years of continuous compliance work, including Howey analysis and forward‑looking assessment of the Clarity Act.
  • Policy concept (brainstorm, not final):
    • Aaron floated: Unvault could enforce royalties for all contracts for a defined period (e.g., one year). After that, if a collection still refuses to implement enforcement via Unvault’s tooling (e.g., migrate to 721C echo), Unvault may stop platform‑side enforcement for that collection. This was not a commitment—just a public exploration of aligning responsibility.

Q&A highlights and resolutions

  • FFV: Applauded moving beyond “access only” narratives toward using tech for real utility. Asked if royalty rug/fragmentation were the push for Unvault. Aaron: yes—born from an artist’s experience, watching marketplaces rug royalties; collections suffered like businesses in a pandemic. Unvault and Divot emerged from that frustration.

  • DOC (technical founder):

    • Patent content? Cross‑chain vault/unvault method; Divot’s reward distribution design; not open source; heavy investment and audits; details in the whitepaper link.
    • LayerZero security? Unvault clarified incidents were project RPC/relayer vulnerabilities; they hardened their own relayers/verifiers; LayerZero itself hasn’t been successfully attacked.

  • “Host” (community; film background):

    • Speed advantage by chain? Possibly—faster confirmation chains could win contested purchases; conversions handled by Particle/Thirdweb; Bugs to mint from “Robin Hood” (as stated).
    • How many partner communities? Public on the Bugs page; a few provided wallet lists due to staking mechanics.
    • Second‑gen Bugs? No superseding second gen. Some collections (e.g., Blowies) may receive Minter’s Bonus rights, but Bugs always retain mint priority.

  • City of Stonks: Introduced an on‑chain wallet visualizer (dynamic SVG), cross‑chain adaptable; originally on XRP, now on “Robinhood EVM” per speaker; interested in interoperability with Unvault.

  • Hashman: Clarified Phase 1 increases and wallet pruning. Unvault will remove ~<200 improperly submitted wallets; then, if counted allocations exceed supply, they will raise supply accordingly. No random removals. No public bucket sizes; allocations can adjust with activity; no over‑allocation gamesmanship.

  • Shields (launchpad integrity):

    • Concern: serial rug deployers. Unvault: mitigations include human curation, legal contracts, a launch fee (~$500), light KYC, no mid‑mint price increases (lowering allowed), and fast delisting for violations. The deployer is Unvault; ownership transfers to the project; it’s not an open faucet.

  • Lady Blue (creator royalties):

    • Unvault confirmed: royalties enforced across chains/marketplaces; tooling to block non‑payers; Divot can be funded from royalties so value flows back to holders through compliant marketing rewards.

  • NFT Drew (standards history):

    • Context: pre‑DeGods/Magic Eden, royalties were enforced by platforms; 721C introduced on‑chain enforcement via blocklists/allowlists (e.g., Seaport), re‑empowering creators. OTC scams remain common; swaps/trades need royalty honoring; “pay the royalty” is the safe default.

  • Aaron vs. Ernest (exposure vs. royalties):

    • Ernest: large platform distribution still benefits brands/IP (e.g., Pudgy Penguins) in tandem with web2 growth.
    • Aaron: web2 traction depends far more on content and distribution (TikTok/Instagram, IRL toys, etc.) than web3 secondary volume; without royalties, “exposure” on a marketplace is of limited real value. Both agree it’s Unvault’s job to grow distribution so partners don’t have to choose between reach and rights. Unvault’s lower fees and enforced royalties are the intended win‑win.

Practical takeaways for founders and collectors

  • For founders:

    • Value alignment: price your work unless you have a principled free‑mint reason. Let Bugs mint first and offer a Minter’s Bonus for a strong initial mint. Enable Divot to reward your supporters compliantly. Use Unvault’s echo contracts to regain 721C enforcement if you’re on an older 721.
    • Safety & integrity: you will sign a legal agreement, pass light KYC, and agree not to raise mint prices mid‑mint. Unvault curates to reduce scams.
    • Economics: trading on Unvault can lower total costs for your holders (0.5% marketplace fee; 1% protocol fee on Unvault for Unvault‑deployed contracts vs. 2% elsewhere) while ensuring you receive royalties.

  • For collectors/minters:

    • Bugs is meant to be used: mint partner drops early, claim Minter’s Bonuses, and help establish a minting flywheel. “Gib” culture and WL farming aren’t the game here.
    • Royalties are enforced: expect safer, more transparent economics across chains; OTC/no‑royalty venues are discouraged and may be blocked by partners.

Admin, timelines, and next steps

  • No hard dates; “getting close.”
  • Final wallet accounting: improper wallets removed; supply will be raised only to match legitimate counted allocations; no classic over‑allocating.
  • Partner list and eligibility: see the Bugs page; some partners submit wallets directly (staking constraints).
  • Communications: DMs open; “Gib” is deleted. Weekly spaces continue; updates as integration milestones land.