App Mining on Rarible Protocol (v2!)

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.

Other Details

  • 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?

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Updated copy below, after a chat with @AlexSalnikov:

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: Phase B will last 6 months after beginning and allows applications to direct rewards proportional to fees collected on the protocol. During the early stages of Phase B, we will work with projects to ensure we have the right information to calculate the share of RARI for each project.

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, 55% to the discretion of applications on the protocol (based on fees collected).

Other Details

  • Rewards for Phase B will 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.
  • Any application which is notices to have fake volume activity will be immediately removed from the app mining program.
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Below is a proposed process for applications that would like to receive RARI rewards.

  • Projects would be required to submit a proposal to Snapshot
  • The proposal would include the following:

Title:
RARI rewards for {name of application}
Description:
This is a proposal requesting that {name of application} be whitelisted in order to receive a share of the RARI rewards based on the sales volume or fees generated by our application.

We consider ourselves independent contractors and will report taxes accordingly. Forms W8-BEN and W9 will be filled out accordingly before funds get distributed to our team.

We understand that the RARI rewards are intended to reward real sales volume and will take steps along with Rarible DAO to ensure only real sales are rewarded.

We also understand that rewards may not be 100% accurate and will work with members of the DAO to solve any issues during this process.
Where funds should be sent:
{wallet address}

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