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
.