App Mining on Rarible Protocol

In order to fuel the growth of apps building on our ecosystem, I’m proposing to experiment with App Mining rewards for the Rarible protocol. Below is an outline of how this would work.

  • Currently, 75% of RARI rewards are distributed weekly to buyers/sellers on the platform, with the remaining 25% going to the Rarible DAO.
  • This proposal aims to reward app developers building on the rarible protocol by offering them a slice of the RARI rewards.
  • Importantly: We treat this as an experiment!

Proposal

  • 2% of weekly RARI rewards (1,500 RARI weekly) be distributed to app builders, proportional to the amount of sales generated on their application (excluding rarible.com). This amount would come from the 75% currently being allocated to buyers/sellers.
  • Rewards start once sales generated on apps reach $5K per week
  • We can scale this reward up once the number of apps grow, possibly capping it at 10,000 RARI per week. RARI rewards could increase as the amount of sales on the platform increases. Examples of this relationship are shown here (any help on the model would be appreciated!)
  • We try this for 2 months, and re-assess on whether this was a good use of funds or not
  • In order to prevent a single application from receiving a too large % of funds, RARI rewards can be distributed quadratically
  • It might be beneficial for projects to be “approved” for this program to ensure that rewards are going to apps which are trustworthy (?).

Any thoughts would be appreciated!

9 Likes

I’d support this experiment! :zap:

+1 on the quadratic distribution and on having a simple approval/curation process for dApps to participate in the rewards distribution.

3 Likes

Genius, definitely a must to empower builders :fire:

I would be worried about wash trading. Even with whitelisted projects/teams it is hard to detect fake secondary market activity trying to game the mining program.

2 Likes

In regards to wash trading @Guifel, we are actively taking measures against that on rarible.com and we can definitely apply the same measures across other apps I think.

1 Like

I added a second model here which is a logarithmic function with an upper bound of 10K RARI: https://docs.google.com/spreadsheets/d/1bYMs6nBe2eEYcEYckZC5HB2ulSxOyAEyHSKeMMOU8Cc/edit#gid=0

Here’s an example scenario:

  • There are 5 teams, team1 = $3900 in weekly sales, team2 = $100 in weekly sales, team3 = $6000 in weekly sales, team 4 = $0 in weekly sales
  • The amount of rewards (according to model 2 in the spreadsheet above) would be 951.63 RARI for the week
  • The amounts given to teams 1-4 would be as follows:
    team1 = 3900^0.5 / (3900^0.5 + 100^0.5 + 6000 ^0.5) = 62.44 / 149.909 = 41.65% of 951.63 = 396.37 RARI
    team2 = 100^0.5 / 149.909 = 6.67% * 951.63 = 63.48
    team3 = 77.46 / 149.909 * 951.63 = 491.72 RARI
    team4 = 0

Thoughts?

1 Like

That’s really smart indeed to create an incentize & maintain the momentum. I don’t have much to say about the underlying concept, sounds well designed & definitely worth trying as POC with a few developers to see how it goes.

That being said, looks like this new mechanism could lead to RARI inflation isn’t it?

Have you considered integrating a deflationary mechanism specifically against mining? (not referring to the other thread talking about inflation as a whole). Something like automated tokens burn for transaction made on coins collected from mining.

1 Like