Should GnosisDAO use RabbitHole to distribute GNO to active users of Gnosis ecosystem?

Hey all! My name is Brian Flynn, I’m one of the co-founders of RabbitHole.

We’ve just launched our latest feature as part of our platform called Earn, which lets any network distribute tokens to users for interacting with their product through on-chain verifiable actions. We’ve also integrated BrightID as a sybil-resistance solution so users can only earn rewards once.

Over the past few weeks, we’ve been lurking in the Gnosis community and observing some of the issues with the token distribution of GNO. We believe that RabbitHole can help foster a wider distribution of token holders and additionally provide a new wave of community members to the ecosystem.

Because Gnosis is a big and complex ecosystem for new users, our proposal would be to create tasks on RabbitHole that awards GNO to users for interacting with each of the different parts of the ecosystem. This will be retroactive, so it will reward past users (as long as they fulfill each of the tasks).

Our proposed Gnosis campaign will require a user to interact with each of the 3 different core products of the Gnosis ecosystem (Gnosis protocol, conditional tokens, and SAFE) with some minimum requirements. The way the campaign is simple: The first x number of users to complete the task will earn a fixed amount of tokens, to be decided upon by the community. For example, the community can reward .5% of the available token supply to the RabbitHole campaign, where each user gets 1/1000th of the total tokens distributed through the campaign. The tokens will be distributed periodically after a user has redeemed.

Additionally, one interesting thing that we can do is bootstrap a conditional token market based upon the success of the campaign - in this case, the number of users who complete the campaign. This would give an additional incentive for the community to refer others to the Gnosis products and further the distribution of the token.

It’s also important to note that while we acknowledge there might be some members of the community who have interacted with different parts of the Gnosis ecosystem with different wallets, we can use BrightID for sybil-resistance (already integrated into RabbitHole0. This is so we can guarantee there will be new users in the ecosystem who are provably unique.

We have run a similar campaign for Aave and have drawn hundreds of new unique users into Aave, and are running one now for Matcha here. We are planning to run others as well. This will give some good exposure to Gnosis to users in the Ethereum ecosystem as they seek to do other tasks around Ethereum.

As part of the campaign for Gnosis, RabbitHole is asking for a small amount of $GNO as a community grant) in proportion to the number of tokens distributed through the campaign. We think either $3K or 2% of the total tokens distributed is fair, whichever is higher. This can be streamed via Sablier for any duration, and give RabbitHole alignment with the Gnosis community during the campaign and afterward as well.

The two main goals of the campaign would be to increase the number of unique token holders for GNO that interact with the Gnosis products and also increase the TVL for the different Gnosis ecosystem.

Looking forward to hearing everyone’s feedback on this proposal - as I’m really excited about the potential.

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This is a really nice proposal - and feel this this can check off some of the main issues around: i)increasing awareness of Gnosis products ii) increasing distribution and enabling users to learn how to benefit from being GNO token holders and iii) doing so in a quantitative, performance-oriented fashion!

But more interestingly, I think the notion of triggering a conditional market on based on the targets set by Rabbithole (in terms of users reached) would be an incredible way for the ecosystem to learn more about the way these markets work - and if the DAO can potentially think of incentivising users with ‘GNOYes’ tokens, it might enable them to organically refer and grow the community to test out these products and give them a chance to express what they like and what they’d like to see. Ultimately, this furthers the GnosisDAO’s standing/vision by promoting futarchy as a key decision-making signal and using this primitive as a basis to drive fruitful outcomes, as opposed to relying on other forms of consultation - and what better way than to integrate this with a quantitative approach to widen distribution and outreach?

Would be interested in seeing how this goes - and especially around using these to create understanding of user behaviour as it relates to participation in multiple protocols.

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I really dig this proposal!

@brian_rabbithole, could you explain how the distribution actually works and what trust assumptions there are in the whole process?

Interesting proposal for sure. I think we should talk about the goal that such a campaign would have.

Is the goal to attract and retain new users?

Do you have numbers about the retention of these unique users that you attracted with past campaigns? i.e. did the incentivization program just lead to a short spike of new users or were you able to retain users as well?

I’m suspecting that retention is quite low here. Hence in my opinion such a proposal is better suited for user testing / user research. Users are incentivized to complete a number of steps and to interact with Gnosis products + perhaps a questionaire. And that way Gnosis can collect qualitative and quantitatve data on usage.

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@brian_rabbithole, could you explain how the distribution actually works and what trust assumptions there are in the whole process?

Right now, we use The Graph to query subgraphs to see if a user’s address has completed a specified task. So in this case, we would use the subgraphs that Gnosis created for each of the different products. When a user completes a task, we save that task in our own database. After all the tasks are complete, the user signs and submits, and the user locks in their reward. The reward is then sent periodically using multi.send to all users who have submitted (right now every 2 weeks).

We realize this isn’t totally ideal from a trust standpoint, especially for larger token distributions, and we’re interested in implementing an escrow in the near term using Gnosis Safe where both the project (GnosisDAO) and RabbitHole can both be required signatures.

Our eventual goal would be to make RabbitHole entirely trustless, so whitelisted issuers can create a campaign, choose the parameters, and submit their reward without RabbitHole’s involvement, but we’re likely not ready for that until Q3-Q4 of next year.

Is the goal to attract and retain new users?

We see this as the best form of paid acquisition in a crypto-native way. We’ve only run two campaigns so far (Aave and now Matcha) and don’t have enough data to support retention yet, but this is something we’re actively looking into of how we can support. I imagine there are handful of Ethereum community members who know about Gnosis, but have not used all of the core products. This would be a great opportunity to introduce the wider crypto community of the products that Gnosis has been working on, and create wider usage of the products.

We could definitely include a questionnaire/survey about the experience as a requirement before submitting the campaign. We already have this on our roadmap but could bump it up for this.

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@brian_rabbithole RabbitHole looks interesting. A lot like the original Earn (great name) but on-chain and better!

I always support trying out many different experiments for the win. You can alway do it more or do it less, or stop. You can only learn.

Interestingly, Gnosis is already doing their own “Feedback Farming” in more direct ways!

What about a Feedback Farming DAO?! :exploding_head:

So many cool experiments.

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Very cool proposal to gamify the process of user onboarding through quests! I would be supportive of giving this a try on a smaller scale.

It would be interesting to know how big the customer acquisition costs were in the previous campaigns and what the retention rate is (how many did just sell their tokens afterwards).

Maybe it would make sense to start with the focus on only one of the projects. Maybe we can try it with the Gnosis Safe mobile app?

Hey @StefanGeorge - acquisition cost is usually equal to or slightly more than the gas costs when there is sybil resistance in place (users want to feel like they made a profit from doing the actions).

When we ran the campaign with Aave, they were awarded with aUSDC as opposed to AAVE, so many kept their tokens to receive the free interest. Can get the exact data for you for this particular campaign if you’re interested. Still waiting on the data back from the Matcha campaign as there is still one more week left.

We could quite easily incorporate money streaming as blanket vesting(Sablier or Superfluid) to get users contributing afterwards and involved. This will ensure users can’t just liquidate right away. Let me know if this is something of interest.

My suggestion is to involve all 3 products since that’s where the real value is. Interacting with Gnosis Safe is likely the easiest and the most lightweight and would love to bring more education to the rest of the Gnosis ecosystem.

Let me know what you think!

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We could quite easily incorporate money streaming as blanket vesting(Sablier or Superfluid) to get users contributing afterwards and involved. This will ensure users can’t just liquidate right away. Let me know if this is something of interest.

Good idea, this would be a very simple way to prevent users from dumping!

+1

The next step is probably to define a budget and start on the actual GIP? What budget was used in previous rounds?

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The way to think about a budget would be to try and define acquisition cost. I’d assume if there’s multiple contract interactions here to complete 3 tasks, gas costs would be decently high, so we’d want to aim around $50 in $GNO per user. Then we can think about how many users we want to target. I’d recommend starting with $200. Then you can consider the fees paid to RabbitHole ($2k) and then also potentially the $GNO to create a conditional token market (if we’d want to consider that as part of the initial campaign).

So the budget comes out to roughly ~$12K in $GNO. Let me know if this sounds good to you or if you think we should start with something lower than 200 users and I can start on a GIP.

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I think we can simply assume 1GNO per user ($64). 200 users sound very reasonable. If we reach this target I would also be happy to have more campaigns. As the governance process is still quite a time-consuming process I would suggest doing a GIP, which already considers multiple campaigns depending on the success of the first ones. I think it is good to go to phase 2! :slight_smile:

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I guess the next step would be to define what kind of interactions we want the user to complete.

Proposal:
(I think it would be useful to turn this into a collaborative doc)

  1. Gnosis Protocol: Set up a strategy with the Custom Market Maker (CMM) Safe App on xDAI.

What is it? The Gnosis Custom Market Maker (CMM) Safe App is a new, early-stage tool for decentralized finance, combining two core Gnosis products. It enables traders to provide liquidity to maximize returns on Gnosis Protocol DEX directly from the Gnosis Safe Multisig.

All instructions can be found here: https://blog.gnosis.pm/introducing-the-gnosis-custom-market-maker-and-tutorial-b48774d746cb

  1. Gnosis Safe
    Create a Gnosis Safe on Mainnet.
    Set up requirements:
  • add at least 2 owners
  • set the threshold of required signatures to 2 or higher
  • Set a daily limit for one of the owners
  • Make a transaction with one of the existing Safe Apps
  1. Conditional Tokens

a) Create a condition ( https://cte.gnosis.io/#/conditions
b) Split a position from collateral by the condition you just created
c) Split a position from an existing position
d) Wrap a Conditional Token in ERC20 wrapper.

This is quite a lot of work (also we could check how much this is summing up in gas costs).
I am concerned this might be too much work to motivate people to get started on this (at least with 1GNO reward).

Pinging here also the product managers of the products @auryn_macmillan @tschubotz @lukas_gnosis @c3rnst @GraemeB for input.

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@brian_rabbithole I am also wondering which channels you are using to distribute the campaign?
I think both the aave community and Matcha community are quite active already so it might be easier to get them involved.
Gnosis has tried a similar approach (rewarding 1GNO for trying a product) already (eg we are currently running a similar program for the CMM on xDAI as mentioned in this thread) and only got little engagement. I am skeptical how much more engagement we can expect?

We would be happy to help. Beside using our Constant Flow Agreement for streaming over time we could also leverage our Instant Distribution Agreement for further reward distributions to token holders in the long term. @StefanGeorge let us know if you’d like to hop on a call to talk about it.

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Thanks Anna for your support on this. I’ve laid out two options that we can run as a simple campaign complete with the goals and parameters we can tweak:

OPTION 1:

Showcase CMM and see if RabbitHole can drive usage of products

Goal: Create an A/B test for Gnosis to see if RabbitHole can drive usage of CMM for their campaign on xDAI.

Tasks:

  1. Set up a safe on xDAI with at least 2 signers
  2. Set up a strategy with the Custom Market Maker (CMM) Safe App on xDAI.

Duration: 1 month

Amount to be distributed: 200 $GNO

Number of users: 200

Amount per user: 1 GNO ($70)

BrightID Requirement: Yes

OPTION 2

Conditionals Campaign on Mainnet

Goal: Reward users for creating conditional tokens on Gnosis and teach them how to split a position.

  1. Create a conditional token position on Gnosis
  2. Split a position from an existing position

Duration: 2 weeks

Amount to be distributed: 200 $GNO

Number of users: 200

Amount per user: 1 GNO

BrightID requirement: Yes

I’ve created a doc here that we can workshop with the above. My recommendation would be to start with a simple campaign to showcase it and we can run a larger campaign afterwards. Given that there’s a discussion around the SAFE token, I think we should leave that out for now (but can include is a small part in the first option).

I am also wondering which channels you are using to distribute the campaign?
I think both the aave community and Matcha community are quite active already so it might be easier to get them involved.
Gnosis has tried a similar approach (rewarding 1GNO for trying a product) already (eg we are currently running a similar program for the CMM on xDAI as mentioned in this thread) and only got little engagement. I am skeptical how much more engagement we can expect?

@Anna To give you a basis of reference, when we ran the Aave campaign in September, we had 100 users complete the campaign for $50 worth of $aUSDC in 2 days, with a similar level of friction. I would expect that we could have 200 users do the tasks outlined above for the specified reward. Truthfully, I have found it hard for crypto projects (from my own experience working at Dapper) to reach active crypto users and it can be quite the echo chamber, and that is why we’re focused on being a paid acquisition channel for active crypto users.

We would be happy to help. Beside using our Constant Flow Agreement for streaming over time we could also leverage our Instant Distribution Agreement for further reward distributions to token holders in the long term. @StefanGeorge let us know if you’d like to hop on a call to talk about it.

@mdalie I’ve been chatting to Francesco on your side about integration already, will follow up with you there.

Happy to workshop on the above doc, and looking forward to putting a proposal forward next week with one of the options!

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Thank you for preparing this @brian_rabbithole and @mdalie. It looks good to me and we should move ahead very soon.

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