PROPOSAL NUMBER
PSP-IPXX
PROPOSAL NAME
Retroactive Reward for genuine Paraswap users who were omitted in the first airdrop and Active DAO participants.
OBJECT
Smart contract development, psp incentives
BUDGET
Unclaimed PSP reward from the first retroactive reward
SIMPLE SUMMARY
This proposal aims to address the case of genuine users who were omitted in the retroactive reward because they fail to fulfil the minimum native token condition and active ParaswapDAO members
ABSTRACT
The attention of the DAO has been brought to the case of genuine users who do not qualify for the initial reward because they fail to fulfil the minimum native token balance condition as part of the criteria set to filter out bots and abusive behaviors aimed at gaming the system. Of all the criteria set for the reward, having a minimum native token (aka gas token) balance of the supported chains may have resulted in filtering out a number of genuine users.
Why should such users be considered? A number of users have the habit of only keeping enough native token (gas token) for transaction fees and nothing other than that. Such users on Polygon may not have 20MATIC or 0.2 BNB on BSC and still transact multiple times.
Omitting such users for failing this condition irrespective of transaction count, transaction volume, and duration of use is not fair and can only result to negative publicity, lose of trust and support of such users and their allies as we have witnessed the last couple of weeks.
The second category of users are active DAO members who have remained supportive with their resources against all odds. Such a loyalty should be rewarded to encourage increased participation in the future.
This proposal aims to reward users in the two mentioned categories an “X” amount of PSP vested over 3 months and to be released in 3 or more instalments.
Qualification Criteria
i. Ommited users in the first retroactive reward who fulfil every condition of the reward except the minimum native token balance condition.
ii. Users who hold, stake, or provide LP for PSP and are active DAO participants.
Who is an active DAO participant? To qualify as an active DAO participant a scoring mechanism shall be put in place such that different activity such as holding or staking a minimum amount of 1000PSP will attract a score. Others include voting, forum discussion, answering of questions on discord, social media marketing, submission of proposal, and specific DAO roles like governance scribe, content producer and evangelist all have a score. A minimum score of 60% of total attainable score shall be used as the benchmark.
A filter shall be applied to exclude multiple linked wallets such that a user can only claim on maximum of 2 wallets.
Why vesting the reward and why intallmental release?
The initial reward witnessed massive sell pressure which resulted in a down trend of PSP. Vesting and installmental release will address the sell pressure. Also, installmental release of reward will encourage some users to delay the claim in an attempt to save on gas fees which will also reduce the sell pressure.
MOTIVATION
i. Fairness to all.
ii. Regain of disgruntled community members who qualified as genuine users.
iii. Increased DAO participation
iv. Change of public sentiments and narrative to favor Paraswap and PSP.
v. Reward of loyalty to encourage increased participation.
RATIONALE
The success of this proposal shall be measured through increased community members vis-a-vis increased holders/stakers count and increased DAO participation.
FORWARD THINKING CONSIDERATION
After implementation, a follow up proposal shall be submitted to market PSP in other to increase the popularity, demand and transaction volume of PSP.
MEANS
The primary budget of this proposal shall be unclaimed PSP from initial reward (if it is within the control of the DAO. Otherwise, the budget shall be financed from the treasury).
A deadline date shall be set for the unclaimed reward and the leftover at the expiration of the date shall be reallocated to targeted users.
The total claimable Reward “X” shall be calculated based on the total number of unclaimed reward after deadline divided by the total number of qualified users “Y”
7800PSP>= X < 10400PSP
If the amount of unclaimed PSP is not enough for the budget, the DAO shall finance from treasury. In case of excess, the excess PSP shall be returned to the DAO or burned.
IMPLEMENTATION OVERVIEW
If the proposal pass, the Paraswap dev shall need to make smart contract development to reallocate the unclaimed PSP. The team shall also generate the list of qualified users.