RRC-17: Distribute remainder of Incentives Reward Program budget

[Jaf]

Authors: @Jaf
Reviewers: @JanaBe , @addie , @WinVerse , @Matt_StableLab , @jarisjames

Abstract:

This draft proposal aims to distribute the remaining budget of the Incentives Rewards Program in a proportional manner among those who delegated during the program. This will encourage program participants to feel incentivized to participate in future programs.

Motivation:

After concluding the program and observing promising results in the primary objective of boosting veRARI delegation and encouraging delegates to actively seek delegation, it is in the Rari DAO’s best interest to ensure participants remain motivated for future programs. Distributing the unallocated surplus of rewards proportionally aims to sustain this level of community engagement.

Rationale:

Upon finalizing the program and receiving participants feedback, it became apparent that some members of the community had interpreted the rewards differently than intended. To address this, we propose distributing the remainder of the reward budget proportionally to those who delegated during the program.

After the program is concluded, the following results are obtained.

• 81,974.08 locked $RARI during the program
• 45,008.91 veRARI delegated during the program
• 5,661.05 $RARI Rewards distributed throughout the program

Initially, as outlined in RRC-13, 30,000 $RARI were designated as rewards for delegators, leaving a balance of 24,338.95 $RARI for distribution.

Allocating the remaining 24,338.95 $RARI in this proportional manner is beneficial to make delegators genuinely feel incentivized and aligned with their initial expectations when they delegated.

Key Terms

Delegate - Someone who votes/participates in governance on behalf of themselves or their delegators.

Delegator - Someone who owns $RARI but does not actively participate in governance. Instead, they entrust their tokens to a delegate. This way, their tokens are still actively being used in governance.

$RARI - Rarible’s ecosystem native token, tradable on major exchanges. When locked, it is turned into veRARI tokens, which can be used in RARI Foundation’s governance.

veRARI: veRARI, or vote-escrowed $RARI, is a token you receive in exchange for locking $RARI (which is done automatically when you claim your reward). This token lets you participate in the governance of the Rarible Protocol and RARI Foundation by voting on proposals submitted to the DAO and grants you RARI Prime status.

Specifications:

Rewards will be made available for all delegations carried out during the program (Nov 21st - Dec 15 2023) to claim following the pre-established program parameters: rewards automatically locked when claimed and following a 6 months lock + 3 months linear unlock.

Steps to Implement:

The solution is ready to implement upon proposal passing.

[lionmsee]

Fully in support of this proposal!

It’s a generous gesture that will reward delegators for their participation in increasing voting activity and DAO engagement to cap off a great and innovative Delegation Incentives Program.

[dzonson.eth]

This approach seems to be an appropriate resolution for the issue of delegators (like myself) feeling discontent with the outcomes, especially when they don’t align with our expectations set by the initially proposed program terms.

Certain details, for instance, whether the 30k $RARI reward would be distributed proportionally, were not clearly specified. In previous programs, participants shared the reward proportionally, but in this instance, it became evident that the 30k $RARI was merely a ceiling, despite the full funds being transferred.

Several other aspects, such as the delegate score being variable rather than a fixed value throughout the program, could have been clarified in the proposal. However, let’s view this as an opportunity for a learning curve.

Thank you once again for taking the time to listen to the feedback from delegators and for putting forward these proposed measures.

[jengajojo]

Thanks for the proposal @Jaf

Can you please help us understand why the rewards were not distributed according to the original budget?

[WinVerse]

@dzonson.eth

Certain details, for instance, whether the 30k $RARI reward would be distributed proportionally, were not clearly specified. In previous programs, participants shared the reward proportionally, but in this instance, it became evident that the 30k $RARI was merely a ceiling, despite the full funds being transferred.

Several other aspects, such as the delegate score being variable rather than a fixed value throughout the program, could have been clarified in the proposal. However, let’s view this as an opportunity for a learning curve.

Thank you dzonson!
We talked about some of these in our last meeting and would definitely improve on them in future iterations.