J-DAP#: Governance Staking Rewards v2 Proposal

Hello Jet Community,

Today I’d like to introduce the Governance Staking Rewards v2 proposal. This proposal is a response to the community’s call for a continuation of the program, with some updated parameters and a well-defined purpose.

We appreciate the community’s healthy pressure on the team to produce this proposal. As we enter into the new year, we are making it a focus to give the community better tools to act on these opportunities independently, and not have our internal workloads be a barrier.

With this incentive proposal, I’d like to submit this for community review and schedule the on-chain vote to occur as soon as possible. I propose the following timeline for approval by the Governance Committee (cc: @adamdelsol, @jrmoreau) to progress this towards a vote and immediate implementation:

  • Community Feedback: 12/14 thru 12/19 (5 days)
  • Frozen Period for Final Review: 12/19 thru 12/21 (2 days)
  • Formal On-chain voting: 12/21 thru 12/28 (7 days)
  • Implementation/Set-up: (12/28 thru 12/31) (3 days)
  • Program Start: (1/1/2023)

I’d encourage the community to weigh in on the definition of success detailed in the Expectation & Logic subsections of this proposal.

I look forward to turbo-charging JetDAO’s governance participation for the coming year with this program.

-Dante

Governance Staking Rewards v2 Proposal

J-Dap Index #: 
Author(s): @dante
Contributor(s): @adamdelsol, @jrmoreau
Tag(s): governance-proposal, j-dap, incentive-program
Status: Community Feedback
Submission Date: 2022-12-14
Approval Date:
Implementation Date:
Forum URL: 
Voting Portal URL:

Incentive Program Description

This governance proposal enables the second iteration of Jet Governance Staking Rewards (v2).

Catalyst

In April 2022, Jet Core turned on governance staking rewards for 180 days to incentivize governance participation. Staking is a required step to enable users to participate in governance votes, and the initial program was rolled out following the first airdrop of JET tokens to the early supporters of the protocol.

The initial staking rewards program ended in November 2022. Since then, the community has called for a re-implementation of the program as both the best use of the JetDAO treasury, and a strategic incentive for supporting the growth of protocol.

Expectations

JetDAO will see increased decisions depending on governance voting as the protocol grows into 2023. An expectation of re-enabling this incentive program is that governance participation will gain resiliency through incentivizing staking JET tokens, motivating more users to stake their JET and being able to vote on proposals.

In addition to supporting the growth of governance participants for the DAO, the JET token itself is posed to benefit from staking rewards by having healthier fundamentals, which can make the token more attractive to a broader audience in the market.

To measure the expectations described above, this incentive program will track the outcome of the program against this formula (parameters are further defined in the Incentive Program Overview section):

Success will be defined as: z_{365}> x + m

Considering the cost of this program, this initiative should only be considered for extension beyond its defined schedule if the expectation metric above is met.

Incentive Program Details:

The following sections detail the specifications and operations of the Governance Staking Reward program.

Parameters

t_n = time (in n days) incentive has been active
t_{max} = total time (in days) program will be active
x = JET Staked at the start of the Program t_0 (if passed, targeting January 1, 2023)
z_t = sum of staked JET on day t_n after the start of the program
z_u = amount of JET staked by a specific user at a given time t_n
m = amount of JET allocated for the Governance Staking Rewards program
r_d = m / t_{max} daily reward of JET tokens through incentive program
r_c = m* t/t_{max} = current total of JET tokens distributed via the incentive program at t_n days
r_u = n_d / z_t * z_u = daily reward for a specific user at time t_n
x + r_c = Expected amount of increased staked JET at time t_n

Timeline

The program will run for a total of 365 days.
t_{max} = 365

The start date of the program will occur on 1-Jan-2023.
t_0 = 2023-01-01

Funds

13 million JET tokens from the DAO treasury
m = 13,000,000 JET

Incentive Program Logic

Required Action

A user stakes their JET tokens at https://govern.jetdao.fi/.

Reward

Rewards are calculated as:
Daily Reward = 13 million JET Tokens / 365 Days
r_d = m / t_{max}

A Specific User’s Daily Reward = Daily Reward / Sum of Staked JET * Amount Staked JET by a Specific User
r_u = r_d / z_t * z_u

Incentive Success

A successful outcome of this incentive program is defined as (same as above):
Total Staked JET at the conclusion of the program > the sum of staked JET at the start of the program + total JET distributed as rewards
z_{365} > x + m

Implementation

Communication

  • A forum post will be published announcing the start date of the incentive upon governance rattification of this proposal.
  • Twitter communications will also be published
    • Upon governance rattification of this proposal
    • On the first day of the program’s start date
    • 7 days after the start date of the rewards program

Funding Source

Funding for this incentive will be provided by the JetDAO Treasury. Upon approval of this proposal, 13 million JET Tokens will be moved from the current treasury wallet to a new wallet created for this incentive program to segregate and reserve the funds.

Technology

The automatic calculations of rewards and automatic rewards payouts will be implemented via the smart contracts used for the first Governance Staking Rewards program, with the updated parameters.

Incentive Program Operations

Participation Verification

Verification will be completed using on-chain data.
All information is publicly available and can be verified independently using on-chain tools.

Reporting

A report of the incentive program will be provided by Jet Core at 3 specific points throughout the life of this incentive program:

  • 3 months after the start date of the incentive program.
  • 6 months after the start date of the incentive program.
  • At the completion of the incentive program.

The reports will be posted to the JetDAO forum, and updated on this forum post in the “Incentive Program Tracking” section of the post.

Depreciation

Communication

Upon completion of the Staking Rewards Program, a forum post will be made signaling the end of the program.

Funding

Based on the defined distribution logic above, this incentive program will result in no excess JET tokens remaining at the conclusion such that no follow-up transfers of the incentive funds will be needed.

Technology

The incentive program will automatically conclude at the predetermined date. No further actions are required.

Incentive Program Tracking

An archive of the data from this incentive program will be stored at a link in this proposal to document the outcomes of the effort.

Linking archive URL TBD.

7 Likes

The Jet DAO Governance Committee has approved the following governance timeline.

I personally look forward to community input on this proposal.

5 Likes

Good proposal. How i can vote for this?

Why have we capped the yearly emission to 13million only for a year?

In the JET staking reward extension thread the community was under the impression to emit at least at the bare minimum pace of last program(some even thinking about increase in pace)

So, for 365 days shouldn’t we emit 26mn tokens at the very least?

The rewards have effectively been cut by half. Even bitcoin does it halvening after 4yrs, we are doing it in 6 months? Doesn’t make sense.

We have a project with a supply of 1.7BN tokens (imagine that for a moment), and the core committee thinks emitting 13mn tokens for a year is a good idea?

1.7BN is a LOT! Its HUMONGOUS!!!

There will come a time when halvening will make sense, now, just isn’t it.

1 Like

Bitcoin rewards are for doing work. This program is essentially giving tokens away for nothing, in the hope that it will attract more users to participate in building the DAO.

So far I see basically no efforts to build out the functions of the DAO, only attempts to get as much out of the treasury as fast as possible. Ultimately I think this shotgun approach will do very little for us, and we’ll come to accept that the only way forward is to issue token grants for specific work that improves the DAO.

1 Like

This rewards all stakers but if the aim is to incentivize governance participation, this proposal has a couple of pitfalls.

Stakers do not have to vote to receive their reward

Stakers should get a base reward, and those who participate and vote on-chain should be placed into buckets as a booster to increase their rewards.

0-24% particitation rate: x1.1 boost
25-49% particitation rate: x1.2 boost
50-74% particitation rate: x1.3 boost
75-100% particitation rate: x1.4 boost

Boost numbers are placeholders and should be amended, but this would directly encourage governance participation. All stakers still receive rewards, but those who vote, now receive an extra reward for the effort of reading proposals and voting.

It is slightly more manual effort, but it will help reach that end goal of more governance participation.

1 Like

I request the Governance Committee @adamdelsol @jrmoreau @wil to weigh in on tokens in the treasury, and help find the correct incentive amount for this program (13m vs. 26m).

Knowing what is feasible from an engineering perspective is not clear, but I’d assume this type of booster reward system would delay the implementation of the new program. In my opinion, getting the program started is paramount, and it would be better to consider a booster type reward later on in 2023 as a modification or new incentive program.

2 Likes

“giving tokens away for nothing,” This is a spectacularly wrong assumption.

People have come together to stonewall ponzi SOL eco listings
People have formulated governance proposals (I did a governance proposal even when there were no “rewards”)

There are people who
Thing is JET has absurd tokenomics, it’s been over 1year, and we still essentially have less than 1% of total supply circulating in the markets. The tokenomics need a serious relook. (Sometimes, I still can’t believe JET thought low float launch would be good for its protocol in long-term.)

Anyways, of 1.7B tokens, they ought to go into hands of people who are putting efforts into making JET better. Be it governance, tool buildup, etc.

12mn is nothing given the abundance of Token JET has in reserves.

“So far I see basically no efforts to build out the functions of the DAO”

Has there been any effort from the exsisting core comittee to come up with ANYTHING in regards to building tooling for JET DAO? No!None! There is no initiative on that side from the core committee(hard truth).

24mn is doable, now is not the time to be conservative, we are building a long strategy for what looks like a long winter. Tokens going into hands of loyal community members is probably one of the best way to robustly decentralize JET’s token distribution.

1 Like

Yeah, it would most likely delay the program from starting. In favor of getting it started now, but I would like to review it again within 6 months or so to implement this boost.

1 Like

I echo this.

I propose waiting until the greater protocol is deployed before making decisions that just waste treasury funds. I just don’t see the point. Nothing proposed so far is “of paramount importance.”

1 Like

It was pretty amazing to see @ezio and @eyevzz have completely opposite reactions to the proposal. This is a good sign for discussion. We are at the capitulation/depression moment of the cycle. Stay strong.

James, Wil and co. didn’t get suddenly stupid.

I always say it’s like betting the turn AND river in Poker.

Whatever made you go in first, should be enough to give you conviction to hold long enough. Bonds are coming - I’m excited.

1 Like

Are we going to move forward with anything here or is this proposal stuck? @adamdelsol @wil @jrmoreau

1 Like

I have a feeling you’ll see action soon.

1 Like

IDK bro, its mostly been inaction the past three months.

Too much of silence TBH.

Seems like a lot of people deserted due to continued inaction.

1 Like

Take a look at this initiative from Marinade, as an example of a more productive use of treasury tokens than giving them away to passive users for simply staking.

In my opinion it would be in the best interest of Jet Protocol to design programs that foster growth instead of vanilla staking rewards.

1 Like