GIP-24: 1st phase 50K GNO Incentives Program for Gnosis Chain as proposed in GIP-16

Governance GIPs
1

GIP-24: 1st phase 50K GNO Incentives Program for Gnosis Chain as proposed in GIP-16

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GIP: 24
title: Initiate the GNO Incentives Program for Gnosis Chain as proposed in GIP-16
author: Karpatkey
status: phase 2
type: Meta
created: 2022-02-01
requires: GIP-16, GIP-20

Simple Summary

  • Request an initial GNO disbursement from the GnosisDAO to continue the original xDAI incentives program and slightly increase them until we launch the main GNO incentives program.
  • Improve rewards for high priority protocols: Core Infrastructure, Bridges, Money Markets.
  • Make sure the GNO rewards are distributed in a way that improves GC network effects and financially aligns the incentivised protocols with the GnosisDAO treasury.

Abstract

Previous to the xDAI-Gnosis merge, several teams proposed STAKE incentives proposals which are currently active:

After the GIP-16, the STAKE rewards were converted to GNO and the additional GNO requirements to honour the STAKE commitments were funded with GNO from the remaining Gnosis Ltd’s funds.

In Dec 2021, Gnosis Ltd transferred its treasury to the GnosisDAO (See announcement and GIP-20).

GIP-16 set the basis for a major incentives program. 400K GNO were originally proposed.

This proposal intends to request an initial GNO disbursement to fund our commitments in the short term and allow the works required for the main/full program to be finished.

14-Mar-22 Edit:
The GNO allocation would be used to transfer incentives in the Gnosis Chain to bridges, validators, and protocols such as the ones below. This proposal needs to be approved in order to prevent a discontinuation of the GNO incentive program:

  • Curve
  • Agave
  • Elk
  • Hop
  • Azuro
  • Dappnode
  • Avado
  • Swapr
  • Dehive
  • Cowswap
  • Lido
  • dxDAO
  • Symmetric

Motivation

Bootstrap liquidity, foster network effects, attract users and developers.

Tentative GNO Liquidity Mining Goals on GC for 2022 (KPIs)

  1. Number of Accounts: Increase user/investor base, X% of Ethereum? Competitor networks?
  2. Number of Txs: Increase onchain activity, X% of Ethereum? Avalanche? Polygon?
  3. TVL: Attract capital, X% of Ethereum? (TVL)
  4. Investments or token swaps: Align economic incentives of the GnosisDAO treasury with previous goals (Investments on incentivised protocols).

Why an initial incentives proposal instead of the main incentives proposal?

The main blockers to launch the main program are:

  1. Current negotiations with high profile protocols haven’t concluded yet
  2. In house/GC native DeFi protocols still under development
  3. Bootstrap liquidity on bridges still hasn’t concluded
  4. GNO holders and major stakeholders alignment still in progress

Main Incentives Program Proposal

Specification

  • Initial/short term program: GNO allocation for initial incentives program.
  • Timeframe for the execution: Q2-Q3 2022
    14-Mar-2022 Edit:
  • Incentive Allocation: 50k GNO

Implementation

  • Allow Karpatkey to use idle GNO from the treasury to continue sending GNO to current protocols on a weekly or monthly basis.
  • Coordinate with high priority new protocols for partnerships, token swaps and investments. This would be presented to the GnosisDAO as new proposals.

Phase 3 edit:

GnosisDAO Snapshot

https://snapshot.org/#/gnosis.eth/proposal/0x9c53b972174d6947627b37ffa332bd9301b9f5d8328e8de62b63a601b71d0656

10 Likes
2

When is it known this total initial incentives amount?

How can we check which protocols will be having $GNO rewards? Why isn’t it announced here on forum or other venue? (your twitter page or GnosisDAO one, or some discord)

So far I count DeHive, HOP and Curve providing $GNO rewards, how can we track this? Amounts, timeline, etc.

Thanks!

3 Likes
3

GNO
What is the standard for airdrop

1 Like
4

We have edited this post adding the amount of the allocation (50k GNO)

1 Like
5

Should the proposal be postponed until the situation with Agave is resolved?

1 Like
6

GIP-24 is live on Snapshot!
https://snapshot.org/#/gnosis.eth/proposal/0x9c53b972174d6947627b37ffa332bd9301b9f5d8328e8de62b63a601b71d0656

1 Like
7

Thanks for this proposal and incorporating more details as to the amount of additional incentives and the specific protocols that will receive rewards. Is there a plan and tentative timeline to address the issues preventing initiation of the original 400k GNO incentive plan?

Is there a policy around posting details regarding use of funds to a forum post that can be edited versus posting directly in the snapshot? Given the amount of funding, it seems this proposal should be formalized via a final snapshot proposal rather than linking to a forum post.

1 Like
8

Why is the GNO incentive on https://xdai.curve.fi/ zero?

1 Like
9

Sometimes there are a few hours a week where the distribution contract has 0 GNO. We will work to improve this. @matrixgame.eth

1 Like
10

GIP-24’s data payload execution failed due to an outdated module that is no-longer enabled.

It was approved with 105% of the quorum needed: Snapshot

  • withdraw 50K GNO from GnosisDAO Vesting Contract
  • send 50K GNO to GnosisDAO Daughter Safe (0x849D52316331967b6fF1198e5E32A0eB168D039d)
1 Like
11

@0x703 Once Agave is restarted, they will continue being part of the rewards program.

@lavande We are building detailed spreadsheets with the txs including GNO sent to the protocols.

1 Like
12

will GBC validators get an Freebee like round one?(that i missed)

1 Like
13

Thank you. That solves my problem

1 Like
14

hi,bro.
When will lock GNO’s Vecow be airdropped? Will vecow also be unlocked for four years?

1 Like
15

GIP-24 Impact Report

Since the transfer of 3304 GNO as per GIP-24, we would like to report the progress and results so far of the incentivization program.

The GNOs were to be used to incentivise Dappnode purchasers of Dappnode hardware to run Gnosis Chain validators by bootstrapping their setup with 4 validators that they could claim, should they be willing to run validators.

This would have the following impact:

  • Would motivate dappnode users to setup Gnosis Chain nodes and Validators,
  • Would effectively increase the amount of Nodes and Validators run in home setups, outside of data centres.
  • Would facilitate users purchasing GNOs and adding to their validating setups, since once you are running one (or 4 in this case) validators, the marginal cost of computation for the machine to add another validator is minimal. That coupled to a low price of GNO could increase the amount of validators run in these setups beyond the 4 validators provided.

After about a year and a half, let’s look at the numbers and the future of this program.

Out of the 945 people included in this program, 495 (52%) incentives were claimed, 9 canceled (most likely due to a change of incentive recipient address that caused us to cancel the whitelisting of an address and whitelisting of another) and 441 did not claim.

These represent 1980 validators (as each incentive was composed of 4 validators).

We have no idea of knowing exactly how many validators run on Dappnode as Dappnode is a tool that by design puts the privacy of its users at the forefront, but we can use the graffiti of the beacon chain as an indirect metric since the default graffiti that can always be changed and customized is “validating_from_DAppNode”. It is now one of the most used graffities, if not the most, and 6 of the 25 most occurring graffities have the word Dappnode on it, indicating that they are most likely validators running on Dappnodes.

1330Ă—792 122 KB

Since Gnosis Chain has almost 150k validators and we started with these 2k incentives, we can suppose that there has been a significant “return on decentralization” on these initial incentives and most people have added to their initial 4 validators.

It was previously possible to see the number of validators with the graffiti validating_from_dappnode in gnosischa.in, but after a recent update the stats have changed and it’s a lot harder to identify how many validators are using this graffiti.

Future use of the incentives

With the remaining GNOs, we will continue the Incentive Program. But, since Gnosis Chain has now activated withdrawals, users could simply withdraw, rendering the purpose of the incentive program useless. Here are the characteristics of the future program:

  1. Linked to specific Gnosis Chain-themed Dappnodes. If all goes well, we will have hardware that has custom graphics related to Gnosis Chain, a “special version” of the standard hardware with the motives of Gnosis Chain. We will include validators with these pieces of hardware.
  2. Anti-withdrawal measures: We will deploy a timelock smart contract per incentive beneficiary. The smart contract will be the Withdrawal Address of the validators. If users trigger the exit BEFORE one year, the GNOs will return to Dappnode to be reused again to incentivize another user. AFTER one year, the Smart Contract will forward the withdrawals to the user’s wallet.
  3. Increase the amount of incentives given. 4 validators was a generous offer and a valiant incentive at the time GIP-24 was approved. We think 8 validators would be in the same spirit given the current conditions.

Overall, we would qualify the program as very successful and we will be happy to continue with the given modifications.

5 Likes
16

I like this idea, especially if the number of validators funded increases to 8.

My graffiti finally made it into the world cloud!

2 Likes