I am super excited to officially introduce to you, a critical piece of the Giveth Roadmap to Gurves: GIVpower!
GIVpower will bring us one step further to a paradigm shift in the public goods sector. Instead of needing to sacrifice to support public goods, GIVpower will build win-win relationships between projects & their supporters.
How does it work?
With GIVpower, GIV holders will be able to stake and lock their GIV in the GIVfarm to earn a yield. The longer they lock, the greater their earnings “multiplier”. The multiplier affects both the APR for their locked tokens & the amount of “GIVpower” they get.
GIVpower is a non-transferrable ERC-20 token that users get when they stake GIV in the GIVfarm on Gnosis Chain. They can use this GIVpower to “Boost” Giveth verified projects to help improve the project’s ranking.
Top-ranked projects on Giveth get additional benefits: Their donors will get more GIVbacks than donors to lower-ranked verified projects, and they will benefit from matching funds from the Giveth Matching Pool.
Launch Part 1: Staking & Locking
We will be launching the GIVfarm-side of GIVpower as an MVP. This means that, coming soon, users will be able to stake and, if they choose to, lock their GIV tokens to earn a yield in GIV. They get a higher earnings multiplier if they lock for longer. They can choose to lock for any number of rounds from 1 to 26. Rounds are 2 week periods that correspond to our current GIVbacks rounds.
This GIVpower 100% GIV staking card will replace our current 100% GIV staking card in the GIVfarm. If users want to vote in the GIVgarden, they will need to stake their GIV “for GIVpower” (i.e. When they stake GIV here, they also get gGIV).
To start, users won’t be able to do anything with their GIVpower, but they will see modals that explain what it is and that, coming soon, they will be able to support their top projects via Boosting w/ GIVpower.
Launch Part 2: Boosting
We actively working on developing the Boosting side of GIVpower. When this launches, users will be able to get GIVpower and allocate it to their favourite projects. They will be able to adjust their GIVpower allocations on different projects at any time in “My Account”.
If users want to take advantage of staking rewards without boosting projects, they will also have the option to delegate their GIVpower. Before launching Boosting, we will have a campaign for delegates & collect a list of willing delegates who want to use GIVpower to support projects on Giveth, while acting as a community representative.
Requesting GIV to rewards GIVpower stakers (to make Part 1 happen!)
In order to start Part 1 of GIVpower, we are requesting GIV to be used as rewards for stakers. @Griff & I worked in this spreadsheet (GIVpower tab) to determine how much GIV we will need to maintain attractive rewards for GIV stakers in the GIVfarm for the first 6 months.
The logic is explained in this video (Thanks @Griff!)
In conclusion, we are requesting 7 million GIV of the 90 million GIV that was allocated to Future Roadmap Projects at launch to kickstart this program and run rewards for 6 months.
In our initial planning (before the GIVdrop) we planned to use about 20 million GIV for GIVpower (formerly known as GIVcuration), so we will likely need to “top up” the allocation for GIVpower if we intend to run this program for the next 4-5 years. Griff & I are thinking that we could get the extra GIV via GIVfi, or through buying back GIV from the OTC desk.
FYI this GIV for “Future Roadmap Projects” is already in the token distro.
Why is this important? & Closing Remarks
With GIVpower, anyone can support their favourite projects, without donating. GIV holders become curators of projects on Giveth, and earn a yield while doing so. It’s a win-win for both projects & their supporters.
The sooner we launch the Staking & Locking product, the better it is for the GIVeconomy. This helps to minimize sell pressure on GIV as we move into the & primes the community for GIVpower boosting!
We want to ensure we offer attractive rewards to GIVpower stakers at the beginning to get people using the product at launch, so good parametrization is important.
We would love to get some input on what the community thinks of using 7 million GIV for incentives for GIVpower staking & locking for the first 6 months. If anyone wants to try their hand and playing with the spreadsheet explained in the video above, please make a copy of this and go wild! Post your thoughts as a comment here.
I will leave this post up for advice process for 5 days, following which I will make a snapshot vote to get approval to use GIV for GIVpower incentives.