Founder’s Node Governance Vote: Referral Incentive System for Ecosystem Usage
Following extensive conversation with the community and having hosted an AMA in the Founders Node Owner channel, the originally posted proposal has been modified in several ways.
- Currently, this will apply to all existing referrals, but eventually there will be a point at which they must be “written to chain” via a burn. This will ensure that in the long-term, only those who are active in the ecosystem continue to benefit from the referral system
- In the end state, referrals will be temporary unless written to chain by a burn. This means that a web2 user can refer a friend and benefit from that referral, but that it will expire unless they “claim” it via a burn in the social dashboard.
- The time to implement the full version of this is 90 days, rather than the initial 7, due to the added lift on engineering and design for the ability to write all referrals to chain.
- Rollout will be phased:
- Two Weeks: Burn rebates for referrers based on burns on ETH.
- One Month: Burn rebates for referrers based on GalaChain.
- Two Months: Referral Dashboard v1
- Three Months: Referral Dashboard v2 + Write Referrals to Chain
- After this phased rollout, non-chain referrals will begin to count-down towards expiration.
The remainder of the proposal remains the same.
The core of this proposal introduces a referral system designed to incentivize ecosystem supporting actions. By engaging in token burn activities, users contribute to the ecosystem’s sustainability and incentivize the long-term Founder’s Node support of the ecosystem. In recognition of the importance of community-driven growth, the proposal outlines that when a user (USER C) initiates a burn, the account that referred USER C (USER B) will receive a reward equivalent to 8% of the burned amount. The account that referred USER B (USER A) will receive the equivalent of 2% of the burned amount. This initiative aims to foster a more engaged and collaborative community, encouraging wider participation in the ecosystem’s development.
This will not impact the Founder’s Node emission rate, but can be looked at as a referral burn rebate for ecosystem supporting actions.
In the event that there is no referring party, then there would be no referral burn rebate.
Example:
- User A refers User B.
- User B refers User C.
- User C initiates a burn of 1000 $GALA
- User B receives a mint allowance for 80 $GALA
- User A receives a mint allowance for 20 $GALA
Actions which would qualify:
- Purchase by burn
- Gas fees
- Channel establishment fees
Note: All previous referrals would still remain part of this system. If you have referred a user previously and they are a part of your account, then you would still receive the referral bonus based on their gas burning actions.
Key Highlights:
- Referral Rewards: The introduction of a referral reward mechanism encourages existing ecosystem participants to bring new users onboard, enhancing the network’s robustness and activity level.
- Incentive Structure: Focusing on on-chain actions, excluding bridging activities, ensures the incentive mechanism is transparent and straightforward. This clarity is crucial in maintaining the integrity and purpose of the incentive system.
- Implementation Timeline: With a commitment to agility and responsiveness, the proposed system is slated for implementation within 90 days following approval. This rapid deployment timeline underscores the ecosystem’s dedication to innovation and timely enhancement.
Community and Governance Engagement:
Consistent with the ethos of transparency and collective decision-making, this proposal will undergo thorough discussion within the Founder’s Node Operator. There will be at least one AMA on this topic, with extended engagement, to gather feedback ensuring that the proposal is refined and aligned with the community’s vision and needs.
Voting Options:
The voting options are currently as follows, though they may be modified by discussions prior to a governance vote:
Vote Question:
Should the Referral Incentive System be implemented to enhance ecosystem sustainability and community engagement?
Yes: I support the implementation of the Referral Incentive System as proposed, recognizing its potential to enhance ecosystem sustainability and community engagement through incentivized token burns.
No: I do not support the proposal as it stands. I believe that the proposed referral system and token burn incentives may not align with the ecosystem’s long-term growth and engagement goals.
Abstain: I choose to abstain from voting on this proposal. While I acknowledge the importance of community-driven initiatives and ecosystem sustainability, I require more information or am neutral on the impact of the proposed referral incentive system.
This vote will end next Monday, March 18th, 2024 at noon PT.
Conclusion:
This proposal represents a strategic step towards leveraging the Gala Founders Node Ecosystem’s full potential, encouraging active participation, and rewarding contributions that drive the ecosystem forward. Through collaborative efforts and a shared commitment to innovation, the ecosystem can continue to evolve, offering increased value and opportunities for all participants.
