GIVpower: Summary & Requesting GIV for Incentives - UPDATE Q2 2024

[karmaticacid]

GM Family!

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!)

GIVpower Parameterization Overview

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.

[Suga]

I support this proposal.

I was confused in the video how, when most contributors stake but don’t lock, that derives the APR up much, much higher. I don’t understand that.

[renjer]

Great explanation of GIV power, 0 to 100
thank you

[aabugosh]

Super excited about this! Thanks for the detailed explanation. I can’t wait to lock my GIV and throw away the key

[karmaticacid]

@Suga

I was confused in the video how, when most contributors stake but don’t lock, that derives the APR up much, much higher. I don’t understand that.

It’s because of two things:

1. There is a set number of GIV tokens that go our every week, and
2. The people who are locking for the max length of time, get 5.2x the APR of people who lock for the min length of time always.

So if you have just a few people getting the max APR and many getting the minimum, the APRs can be greater overall. If there are many people locking for the max time, then many people will be getting that 5x of rewards… and it means that overall, the APRs will be lower (because there is a finite number of GIV that can go out).

Does that make sense?

[Suga]

I got it! Thank you!!

[mitch]

@karmaticacid

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.

If users can lock up GIV for one year (26 rounds max) what happens when users lockup longer than the rewards are supposed to last for? will we need to do another topup of the token distro?

[santigs]

First of all, thank you for the video, It is great to see all the intelligence you worked on to reach the final numbers. My main concern is if you have made any scenario analysis as you are taking data from the past (with no GivPower implemented) and GivPower may completely change the regression line you modeled. Just would be nice to recreate a couple of scenarios (sensitivity analysis) to have some roadmap to react if the community reaction upon the GivPower launch is quite different from the expectations calculated in the spreadsheet.

[santigs]

That’s a good point, there should be a backdoor to be able to unfreeze your Giv if the pool runs out of funds.

[Cotabe]

Praise @karmaticacid and @Griff for this very well thought proposal. I support the proposal in general terms. I think numbers make sense to keep an attractive APY and push forward GIVpower on the way to Gurves!!

I eco @mitch and @santigs concerns regarding locking for 1 year when estimating the budget for 6 months and the sensitivity analysis.

Also, pulling the thread @mitch highlighted… What if some people lock tokens 5 months after the beginning of the period. Should we be considering that this budget would need to be topped off, not only for the following 6 months but maybe 1 whole year?

If this is the case, would we allocate another 7 million-ish for each 6-month period? Because that would take all the budget of the GIVpower in the first 1.5 yrs.

[chadfi]

Great summary @karmaticacid! I love the UI, bravo to you and the dev team. Big fan of how simple the variable APR mechanism is. I’m excited to watch it effectively drive long term staking - thanks @griff for walking through the assumptions and pulling on some levers to drive the point home (p.s. give your RAM a break a close some tabs )

[karmaticacid]

Well I’m not sure if we will need to topup the distro - mostly likely eventually… but that 20 mil allocated to Future Projects is already in the distro.

We will add more GIV to run the rewards program another 6 months closer to the end of this first stretch. Like a GIVfarm extension.

[karmaticacid]

@Cotabe

If this is the case, would we allocate another 7 million-ish for each 6-month period? Because that would take all the budget of the GIVpower in the first 1.5 yrs.

Yes, we will need to allocate more GIV than originally planned before the GIVdrop in order to make GIVpower. If we lower the allocation much more the rewards will be a little low for staking + the stream.

[Cotabe]

Makes sense, maybe we can talk more about it on the GIVeconomy research call.

But, in general I fully support the proposal and I’m super excited that GIVpower is finally here!!!

YEAHH!!

[clara_gr]

Thanks @Griff @karmaticacid for the detailed walk-through: it’s a nice model to play with and test different assumptions. I think it’s important to offer an attractive APR.

I also agree that time frames for locking and estimating budget should be the same, although estimates for locking beyond 6 months become somewhat arbitrary when so much of the budget is already based on variables that seem hard to predict/estimate.

@mitch

If users can lock up GIV for one year (26 rounds max) what happens when users lockup longer than the rewards are supposed to last for? will we need to do another topup of the token distro?

If I’ve understood the model properly and projected correctly for 26 rounds: the GIV request would be just under GIV 16.5 million (to reward for 26 rounds based on the same assumptions for estimated tokens staked etc.)

[karmaticacid]

@mitch @clara_gr thanks for you great questions. There are a lot of assumptions being made to estimate the amount of GIV to use for incentives. We don’t know exactly how people will behave.

Setting the incentives for 6 months and not 1 year takes that into account. After some months we will have been able to observe how users behave and then can set new incentives to continue the program for another 6 months. We will do this, the plan is NOT to just stop rewards.

Also, 6 months is a good time period because it covers also the duration of the summer when much of our team will be off.

[karmaticacid]

@cotabe @mitch - we won’t need to top off the token distro within this year, because we allocated 20 mil GIV to “GIVcuration” (our old name for GIVpower)… also, we will likely not need to the 10 mil GIV for multichain Trace, so that gives us another 10mil to play with to extend the program even past the 1 year period.

@karmaticacid

FYI this GIV for “Future Roadmap Projects” is already in the token distro.

We will eventually need to top off the token distro, but not within this year for GIVpower.

[karmaticacid]

Ok! After no objections in the gov call, the snapshot vote is up!

Please vote:
https://snapshot.org/#/giv.eth/proposal/0xf1f999bc9df3420e5ee78cf4906aa2544688955af14bf871bff71c7d62436002

[Danibelle]

Soooo… those of us who received our full distro instead of the 20% liquid… should not vote righ now… righ…

[karmaticacid]

I know I already voted… I’m kind of expecting that we’ll get unanimous “yes’s” but if not, we might have to remake the vote.