SIP | Fund Ongoing Network Engagement Rewards

  • Author: Kyle Olney, COO @ SuperRare Labs
  • Status: Approved
  • Type: Governance
  • Implementer: RareDAO Governance Council
  • Sponsor(s): Pindar Van Arman & John Crain
  • Link to Temperature Check Poll: Discord
  • Created Date: 06/16/23

Summary: Allocate ~45M RARE to fund network participation incentive programs

Abstract: The development of network participation incentive programs that reward active users for their continued patronage are an intelligent way to: i.) stimulate overall market activity, ii.) drive engagement & adoption of features like staking, and iii.) continue broadening the overall distribution of the RARE token - particularly during the current bear market

Motivation: The August 2021 airdrop remains the only large-scale token distribution event executed by the DAO treasury thus far. Many new artists + collectors have become active stakeholders in the SuperRare ecosystem over the last 2yrs who should be rewarded for their continued loyalty and engagement.

Furthermore, a pronounced slowdown in artist + collector activity during the bear market (combined with the release of new products that would benefit from fiscal stimulus, like staking) make it both strategic & timely to develop rewards programs that can leverage treasury resources for the benefit of stimulating market activity in a counter-cyclical fashion.

Specification: Following the adoption of this proposal, the RareDAO Governance Council will: i.) dedicate 40m RARE from the community treasury to an allocated pool whose purpose will be to fund user rewards, ii.) be officially authorized to implement one or many programs to reward active users of the SuperRare marketplace &/or Staking contracts as a minor DAO action, and iii.) re-allocate the ~4.8M in unclaimed RARE from the Aug '21 airdrop for the same purpose.

SuperRare Labs and the RareDAO Foundation will provide guidance to the Governance Council as needed to facilitate the design, implementation or distribution contemplated by any such program that may be developed - whether based on historical or prospective user engagement data.

These funds will remain allocated for the continued promotion of user engagement rewards subject to authorization by the Governance Council.

Benefits: The allocation of these funds should i.) reward new users of the platform since the Aug '21 airdrop for their contributions to the network, ii.) further incentivize active users of the platform for their continued loyalty, iii.) incentivize new market activity from all users, and iv.) stimulate further adoption of the staking protocol if it is adopted by the network

By developing user rewards programs that incentivize continued engagement, we can create a positive flywheel or virtuous feedback loop that benefits the SuperRare Network and can serve as an important counter-cyclical fiscal stimulus during periods of weakened market activity.

Drawbacks: The allocation of these tokens to fund network participation incentives means they cannot be allocated toward other programs. It is further possible that participation incentives like those contemplated by this proposal may be ineffective for the intended purpose of stimulating increased levels of market activity.

Outcomes: Upon passage, the Governance Council will earmark 45m tokens (40m from the normal treasury + 4.8m unclaimed from the original airdrop) to fund various programs as needed to incentivize ongoing network participation from active users of the SuperRare marketplace &/or staking protocol (should it ultimately be adopted by the network).


This seems to be a very much needed part of the puzzle, for continuous incentivization of people who can and want to contribute to the growth of the network.

Also I like the effect this has on further spreading the distribution of tokens to members of the community that are bringing value. Definitely could be beneficial to new participants in the ecosystem who weren’t around for the airdrop.

So even dough these funds would not be able to be allocated toward other programs, I do think this is a important approach to aligning interests of the network with the core contributors, creating a potential for win-win scenarios.


I am up for sponsoring this.


Thank you @VanArman. The SIP has been updated to reflect you as the sponsor. If you’re able to make it to next week’s town hall, it would be great to have you briefly during the town hall to discuss your support behind this SIP: DAO Town Hall #32

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Thank you Pindar. I will sponsor this proposal as well.

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This proposal is live for Snapshot vote at Snapshot. The voting period closes next Wednesday 7/26 at 5PM EST.

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Update: Community voting for the [SIP-15] Fund Ongoing Network Engagement Rewards has met quorum and closed in favored for moving the proposal forward.

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Would like to point out that many also contributed to the overall ecosystem by HODLing the airdrop and being tottally wiped out from the market, including other non web3 factors like centralized marketplaces like celcius and gemini freezing people’s accounts forcing others to liquidate. Incentives to keep people steaked into the rare ecosystem, like the rare steaking is cool, and collecting for rare, but we haven’t seen anyone collect in rare. Thoughts about how to add to this proposal: Many incentives like getting a discount for collecting in rare, rare listing rewards, fund gifting diamond emoji’s that can be exchanged for rare, and of course the rare steaking network.

Also during this bearmarket and subsequential spontaneous growth of superrare artists, many felt left out, confused, disillusioned, including with hiring and then subsequential letgo of many staff members. These have been troublesometimes, and have also affected all other ecosystems in similar manners. Yet many have contributed to the network and growth through social media and other means which may not be fully representative on-chain.

Liquidity is also non-existent, swapping and receiving -20% in return does not make it attractive. suggesting that SR labs could provide liquidity on uniswap and other decentralized platforms and receive a percentage of the decentralized swaps for further income for the organization.

I would suggest future airdrops be given in smaller and more frequent timelines, which would spark continual engagement with the platform, and not a few people fleecing everyone, REKing everyone and running. Also further incentivizing a slowly increasing price and robust ecosystem.

Pce n Love BC🥩-of-the-arts-44965

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Thank you for thoughtful reply and feedback @Bigcomicart. Now that this SIP has been approved by the community, distribution discussion is a topic that we hope to cover and gather more feedback on during our town hall tomorrow. We hope you can join us so you can share with the broader community. :point_right: DAO Town Hall #33

Going to sponsor this SIP too.

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Hello everyone - a brief update on this SIP

In February, the council voted to approve an implementation plan for this proposal. While it does not specify any distribution of $RARE at this time, it clarifies the decision making process by which that would occur and increases the regulatory compliance of the overall process by granting final control of the assets to the RareDAO Foundation. No distributions will be made without prior notice to and feedback from the DAO Council. The council will be closely involved in discussions and planning around any distributions from this fund. This is just an administrative change to decrease the potential regulatory liability of individual council members and the DAO as a whole.

The council proposal approving this implementation plan: [SCP-19] Delegate implementation of SIP-15 to RareDAO Foundation

The multi-sig transaction executing transfer of funds to the multi-sig created by the RareDAO Foundation exclusively to handle these funds:

The multi-sig where funds will be held by the foundation: 0xB6bE324BB8d75a8275f0f21fEf66C9b4ad2304AF