The purpose of this forum post is to summarize the outstanding parts of the distribution and reach a final agreement. In the screenshot of the excel sheet (below) the green highlighted percentages are yet-to-be voted on - and this is what we’re discussing and voting on here!
These include the Strategic Partners Allocation (1% of total supply), Current Contributors Allocation (3.5% of the total supply), GIVfarm, GIVbacks & Other.
The first two were already discussed at length in the forum proposals linked. For Strategic Partners we’re essentially voting here if we’re ok w the 1% being allocated to that group. For Current Contributors… the only change is that we added an additional ~5% (of the individual’s amount) to each contributor’s allocation, just to make the total an even 3.5% (rather than 3.316225%, which is what we originally agreed to).
For the GIVfarm, we discussed the pools and the allocations, but the discussion isn’t captured in a forum post, so I’ll summarize here. For GIVbacks & Others, there is a lot less to explain, but I’ll summarize here and if anyone has any questions, you can leave a reply.
GIVfarm
Percentage of total supply going to reward GIVfarm stakers
- 10% of the total supply is being allocated to GIVfarm rewards
- We’re using 3.5% (from that 10%) to reward GIVfarm stakers in our first 26 week farm cycle
- That 3.5% is broken down to reward stakers in the GIVfarm on mainnet (1.5%) and xdai (2%)
Why are more rewards going to stakers on xDai?
We chose to allocate more rewards to stakers on xDai because the majority of GIV action and GIV earned will be on xDai - GIVdrop, GIVgarden (voting and rewards), GIVbacks. The GIVstream will also be predominately on xDai… the only GIVstream that people get on mainnet will come from earning rewards in the mainnet GIVfarm.
In order to provide liquidity or stake on mainnet, people would need to bridge their GIV tokens from xDai chain (or buy it from a mainnet exchange).
Mainnet Pools Allocation Breakdown (1.5%)
1% - The UniV3 pool concentrates liquidity around the current price - so (long story short) more liquidity is gained from less liquidity being provided. This means that it’s easier to make large buys and sells for whales to enter and exit our economy - making it more attractive to all! less slippage + all good things. We allocated the majority or mainnet rewards to this pool, because we want it to be the most attractive to concentrate liquidity even more.
0.25% - The Balancer pool is included on mainnet because we want to create an arbitrage opportunity, therefore another use case for GIV.
0.25% - GIV staking pool is there too so that, when people earn their GIV rewards, they can easily just earn even more from them, rather than selling them!
xDai Pools Allocation Breakdown (2%)
1% - GIV/HNY pool on Honeyswap: Similar to the explanation above for mainnet… we have 2 pools to create an opportunity for arbitrage bots… but we also want to have liquidity concentrated in one of the pools (creating an opportunity for larger buys/sells) so are allocating a higher percentage of rewards to one (greater incentive). 1hive has been a big Giveth supporter, helping us develop the Garden, so we chose to make the GIV/HNY pool the one w the most incentives for concentrated liquidity.
0.25% - GIV/ETH: see above! arbitrage opportunity
0.75% - GIVstaking (gardens): this pool is dual purpose; it encourages GIV holders not to sell their rewards (they can stake it and earn more!) & it generates rewards for people who use GIV to vote in the GIVgarden.
GIVbacks (13%)
GIVbacks rounds last 2 weeks and we’re allocating 0.1% of the total supply to reward Givers to verified projects each round. The max amount that Givers can earn each round is 75% of the value of their donation. If the 0.1% allocated to the round is not used up, the extra funds go to the GIVgarden to fund proposals.
0.1% every 2 weeks, means that this 13% will cover GIVback rounds for 5 years. (We can also vote to increase this in the GIVgarden later if we so wish)
Other
The remaining (yet-to-be voted on) allocations are basically funds being allocated to projects that we know we want to make happen…
- Multichain TRACE (1%)
- GIVmatching (2%)
- GIVcuration (2%)
- GIVfi (2%)
- GURVES (2%)
and rewarding contributors in the future:
- Future Contributors (4%)
- Inital Sourcecred funding (3.5%)
In Conclusion!
A lot of thought and discussion went into this distribution proposal. Any questions are welcome here. We hope to finalize ASAP so we can get this GIV dropping!
That image was taken from here, btw, if you want to see the sheet: GIVdistro Final! - Google Tabellen
thanks everyone for your engagment