Incentivize DApps with transaction fees to deploy on GBC

General Gnosis Chain
1

I would like to discuss an idea on how we could drive adoption forward by incentivizing DApps.

At the moment, Gnosis validators are receiving mGNO for their validation work. After the merge the network fees are also given to the validators.

To incentivize DApp builders to build on GBC, we could share 50% of the transaction fees with DApps build on GBC. This would mean that projects would generate a revenue stream which is user/transaction based.

Imo such an approach is quite interesting because trading portals e. g. Perpetual Protocol and dYdY would be incentivized to deploy their DApps on the GBC and DApps which are not finance based but still providing a value added to the user could generate a revenue stream.

Such an incentive could be provided for a specified time range e. g. 2, 3 or 4 years (defined by GnosisDAO).

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2

Not sure how complicated the implementation might be (protocol has to distribute the fees differently depending on the addresses involved in a tx and not per block), but if there is a way to facilitate this it seems a good idea.

Otherwise a pool of fees could be collected and distributed on a pro rata basis to projects participating depended on the tx volume they generate?

Anyway, as long as we keep the fees as low as they are right now it needs a lot more volume till there will be a reasonable amount to distribute;-)

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3

This would penalized Validators by 50% reduction in Network rewards and encourage scam DApps to spam the network to create Network Transactions.

Why not encourage DApp Developers to deploy using Gnosis Chain since it is fast, inexpensive and cross-chain with lots of mature tools for developers in place? If a DApp needs to be paid for the sake of being deployed, it must not have much of a business plan.

4

If rewards are only 50% of payed tx fee I don’t see how spamming would be a viable business model. And if a dapp brings a lot more tx it can also benefit the validators.

But I agree there should also viable business plan/use-case besides generating traffic.

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5

Maybe better to give projects that are funded by GnosisDAO the funding (for a part) in GNO with which they have to spin up validators for some period( like 3 years). They can only withdraw fees right away, so that they are incentivized to secure the chain

6

I agree with @refri. I think the price would be to high to encourage scam DApps to spam the network.
Such a 50% model would support especially huge protocols whith a lot of transaction → active users.

It could be a business model for e. g. Circle, because they would be incentivized to establish and to run a USDC payment system on GBC. In the end it would be a win-win situation where GnosisDAO could push it’s GBC system together with real world companies forward.

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