Proposal: Unlocking Perp Tokens for Growth

That’s a great proposal for Ecosyastem grwoth, unlock PERP token could be a huge incentive for users and holders. Also, with perpetual protocol shining in onchain deravatives, i believe lots of capitals and funds are searching for opportunity to participate in perpetual eco and contribution as strategic partners.
In addition, with token price pump up, current liquidity on DEXs must not enough, meanwhile traders face bigger slippage than before.
That’s great timing to unlock~

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In support of this proposal too! LFG!

Some comments:

  • On transaction mining rewards: I think 13M PERP is a tat bit too much. 10M should be enough (half of current circulating). The other 3M can be used for Strategic Partnerships budget. Also, I believe all 10M should be fully vested over a 1 year (block-by-block), similar to how DODO vesting works else the LPs/Stakers for PERP will lose out.
  • On strategic partnerships: 3M PERP (= ~$18M). I don’t think this is enough to get good partners on board. Been in this industry for a while, and almost all significant partnerships made requires at least $1mil investment. You need more cash reserves to rapidly expand beyond Taiwan. Key markets to go for should be HK/SG/US in my opinion.
  • On Bounties Program: 500k PERP (=~$2.5M) allocation looks good! It can last for the whole year for community integration projects. I will recommend using the strategic partnership funds to get an Asia Group (Wanxiang, Fenbushi, LongHash) to help with the distribution of these grants. As for the US, I think you can get a partner with Tachyon or DeFiAlliance (by Qiao Wang) can help with distribution too. Also, getting PERP listed on Gitcoin Bounties/Hackathon/Grants is pretty cheap, cost roughly $50k.
  • On DEX liquidity mining rewards: 4M PERP looks good! I think further mining rewards should be stake-only enabled for 1-year though, before being able to sell. Possible to do so via a vPERP token contract? I hope so.

Just my 2 cents! Looking forward to helping you guys succeed.

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I like the trial and error approach to get the optimal strategy. I’m just confused as to why the proposed weekly cap will deplete the 13M PERP in just about 4 weeks? Vesting period must favor long-term supporters.

On DEX Liquidity, have you conducted impermanent loss impact analysis?

On distribution of PERP among the goals, you may consider moving tokens from one goal to another if it fits more the achievement of your overall objective.

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Oh sorry we’re asking for 13M in PERP (so at current prices it’s ~78M in USDC value) and then a maximum of 4M USDC per week. Ideally though we really don’t want to spend all of this. I would almost think of it like an exponential in terms of spend - start super small and then scale it up as the transaction volume and new users join

This is super interesting. Are you suggesting we do 10M in transaction mining and then move the 3 to strategics (i.e. 6M PERP strategic)?

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Support. Would like to know the specifics of the rewards program though. Even if it is going to potentially change due to experimentation, we would like to know the first implementation.

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First off, congrats on hitting the ONE BILLION milestone today! Great achievement!

This is a great proposal Nick, covering a lot of ground there. Looking forward to continuing discussions on all of this.

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What are the proposed allocations if the $13m rewards pool between staking rewards and trading incentives?

I’d suggest the bulk go towards staking rewards and rewards should be escrowed (look at Synthetix as a model).

Staking bootstraps community engagement and governance while also locking up economic value. It creates a reflexive loop that supports token price appreciation as the network grows.

Hold and stake perp > earn tokens + fees > attract more hodlers and users > drive transactions volume > increase demand for perp tokens by new stakers looking to capture a portion of fees > cycle continues.

Escrowing at least the perp rewards for say a year will attract longer term participants and may dissuade folks who would just earn and dump.

Folks that stay along and get involved are more apt to be retained long term as they support the network to increase it’s economic value that they share in.

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Appreciate the team taking community input on this rather than making a decision on its own. I fully support most if not all of the initiatives laid out. I particularly like experimentation with rewards to find best fit.

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Yes, I think it will be more useful for the 3M PERP to be in the Strategic Budget. Getting someone like JUMP Trading as a partner might cost $3-4mil alone.

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I would like to see a strategic partnership with Yearn Finance.

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Why do we all assume a strategic partnership entails PERP paying up on their end? PERP has had insane growth on its own without much help, why aren’t others lining up at the gates to pay PERP for a partnership instead? Just a thought.

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Thanks for the suggestions.
Both certain % of the trading incentives and staking rewards would be vested over a longer time like Synthetix.
We will release the draft of the reward design soon but I’m afraid we will have way more rewards for trading incentives than staking.
The rationale behind this is because, if we can boost the trading vol by giving out trading incentives, the fees will be boosted too and half of that will go to the stakers. It boosts APY a lot and should be enough to attract stakers.
That being said, we will run some experiments and see how things work out.

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Thanks for bringing this up. It’s actually a hard tech question we have when implementing the L1/L2 integration.

The error message shown above is because we can’t use EIP-712 to sign a JSON doc and send that to L2 for execution. Metamask doesn’t allow the DApp to sign any messages if it’s targeting a different network. We need to implement a customized signing method in order to get around this, but Metamask then shows us this warning message.
I hope we can find another way to work around this soon, but we don’t have many choices by using Metamask.

The quickest workaround we have is launch another website that ask users to connect to xDai Network directly. It solves some of the UX problems we have like hardward wallet, wallet connect, and this warning message, but make it harder to onboard users.

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Ok I get that rationale. Makes sense.

  • Bootstrap volume
  • Higher volume = Higher fees
  • 50% fees accrue to stakers + Smaller staking incentives
  • Demand for tokens to stake goes up to capture growing fees

:+1:

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that is a great proposal!

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Agree with the general outlines of these proposals, but I wanted to point out that for 3. Bounties program; you want to allocate a sizeable portion to UI. While the current UI is functional and clean enough, it is certainly lacking in aesthetics. The UI needs to look pleasing and professional and you likely want to integrate statistics onto the main site instead of relying on third party services. The look also needs to have Perp’s identity incorporated into it, now it just looks really generic and bland, a bit of a gamified feel to it is also preferable. A fantastic example of a great evolution over time is SushiSwap. I’m sure this has partly played into its current popularity, it’s just a joy to browse and makes people stick around and play with the site/want to understand how it works. My feeling is that you probably want to have some upgrade implemented before launching big trading incentivisation schemes.

The second point I wanted to raise is that we will need to continue having DEX Liquidity Mining Programs, that are close to on par with the rewards you get from staking (both have a risk factor to it, so not necessarily need to favour one over the other). I think it is essential for price discovery that Liquidity Mining Programs remain in place in this early stage of the project. The specifics I am unsure about, but it needs to be done. Simply injecting PERP into balancer will not be sufficient, you want to run something on Uniswap or SushiSwap where you just get a lot more visibility from the wider DEFI community.

My 2 cents, looking forward to seeing the fleshed out proposals next week.

3M PERP at current prices would be anywhere between $12-15M so should be ok?

500K is pretty beefy with current prices. Potentially we can increase the ask to 1M but that’s a lot of bounties to spend!

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Yeah not necessarily saying to increase the bounty amounts. But just seeing one being allocated to UI that is reasonable in size (not seeing any current bounties on that?). Our community unfortunately isn’t big enough yet to have fans building out cool interfaces on their own

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I’m a bit late here, but I support the core idea of supercharging growth. I fully trust the team to execute the plan, and tilt when needed. This is almost a winner takes all, so we need to take some risks to succeed.

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