In a previous post, I explored the idea of app mining on the rarible protocol. This is an updated post on that concept, which hopefully we move forward as soon as possible.
The high level concept behind the app mining program is that instead of the DAO distributing RARI rewards to buyers and sellers, the DAO will instead allow applications building on the protocol to decide where their share of RARI rewards are going, based on the sales volume or fees obtained by each application. An application for example could decide to keep the RARI rewards, or they could decide to give them to their users, or their DAO (among other possibilities).
High Level Overview
We roll out an app mining program in three phases:
- Phase A: This is the current phase. There is no app mining program. The DAO gives rewards to buyers and sellers of the rarible ecosystem directly.
- Phase B: This phase is triggered once there is a certain amount of weekly volume generated on apps in the ecosystem. The main purpose of this phase is to ensure we can execute this from an operations perspective while working out the kinks. This phase will last 2 months, and will have a fixed amount of rewards going to Rarible.com vs. other applications.
- Phase C: Phase C lasts 6 months and allows applications to direct rewards proportional to fees collected on the protocol.
Token Distribution Details
- Phase A: 75% to buyers and sellers on the rarible.com platform, 25% to Rarible DAO treasury.
- Phase B: 10% to RARI stakers once staking is live (until then, the 10% will go to the DAO), 35% to the DAO, 50% to rarible.com discretion, 5% to discretion of other applications on the protocol.
- Phase C: 10% to RARI stakers once staking is live (until then, the 10% will go to the DAO), 35% to the DAO, 55% to the discretion of applications on the protocol.
- Rewards for Phase C would be scaled quadratically
- There will be a white-listing process, wherein applications must be approved by the DAO (this will be a simple proposal asking to be whitelisted + a bare minimum of details)
- Rewards will be proportional to fees collected by the applications on the protocol, as this is a good proxy for the revenue generated on those apps. This is a better option than revenue of each app since the protocol has a shared order book, and NFTs might be listed on App1, the sold on App2.
QUESTION: Do we need Phase B if it is just proportional to the fees captured by the different applications? Maybe we can go directly to Phase C?