- 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).