KIP-38: Sovereignty Phase Competition Update

Author
StatusImplemented
Created2022-10-17

Summary

Due to significant changes in the timeline of the Sovereignty Phase previously outlined in KIP-10, this proposal provides an updated allocation of KWENTA tokens and re-proposes the trading competition portion of the Sovereignty Phase.

Abstract

1% of the KWENTA token supply at launch will be allocated to the Sovereignty Phase trading competition, totaling 3,133.73 KWENTA tokens. The allocation will be used for trading competition prizes, as well as related marketing initiatives where community members may earn tokens for trading in conjunction with additional participation in the DAO or community events. All KWENTA distributed from this allocation will be on a 1-year linear vesting schedule as described in KIP-34.

Motivation

The purpose of this campaign is to amplify the launch of cross-margin, stop/limit orders, and the KWENTA token similar to the motivation described in KIP-10. Due to a significantly different overall timeline from when KIP-10 was passed, this update not only adjusts the allocation of KWENTA tokens and their use but also ensures that implementation of the trading competition can still occur outside of the original dates specified. The trading competition structure and dates in this KIP also provide guidance for the community, but with more flexibility for contributors to administer the program and utilize incentives for related marketing initiatives, such as offering trading competition participants bonuses for detailed feedback and bug reports, which may be particularly valuable as this competition will be the first stress test after a major product release.

Specification

This section updates the 2 round trading competition originally scheduled for Tuesday, March 15. In the original trading competition design, aggregate Kwenta prizes for 2 rounds totaled 1739 KWENTA.

This KIP allocates 3,133.73 KWENTA, or 1% of initial supply, to a trading competition to be held at a later date, and allows competition structure and prize allocation to be adjusted at the discretion of contributors implementing the initiative provided that the design adhere to the following requirements, which clarify the spirit and purpose of the initiative:

  • The competition will include between 2 and 4 rounds
  • The competition will begin less than 30 days from the estimated token launch date
  • At least 1,000 addresses will be eligible for at least 1 KWENTA, assuming adequate participation

The aforementioned token prizes will be allocated for the following purposes:

  • At least 1,000 rewards associated with placing in a specific PnL rank relative to other traders during the course of the competition, both high and low ranks may be considered
  • Rewards for achievements in specific metrics, such as largest liquidation, volume benchmarks, or trading specific assets.
  • Rewards for special programs operated by the MarketingDAO which reward trading in conjunction with other DAO contribution or community participation.

All tokens from the allocation described will be distributed as locked on the same 1 year vesting schedule described in KIP-34. Addresses may be made ineligible for the trading competition at the discretion of core contributors if there is evidence of manipulation, abuse, or evidence that the trading did not occur through the Kwenta front end. Only users of the kwenta.eth.limo or kwenta.io will qualify for trading competition prizes.

If approved, this KIP nullifies and replaces any KWENTA token allocation and rewards structure described in KIP-10 & 26 for the Sovereignty Phase Trading Competition.

Copyright and related rights waived via CC0.