Updating RARI Token Distributions 🚀

Over the last few weeks, I’ve been in discussions with various community members in the DAO TG chat, as well as members from 1kx and CoinFund.

There are a number of concerns that were brought up, including: price volatility, lack of liquidity for the token, too much inflation, wash trading concerns… among others. Below is a proposal to improve the token distribution.

Current token distribution

  • 75,000 tokens weekly
  • 25% to the Rarible DAO
  • 75% to buyers / sellers on the platform, proportional to sales volume

Proposed token distribution (Phase 1)

  • 75,000 tokens weekly
  • 35% to the Rarible DAO
  • 15% to RARI stakers
  • 50% to apps building on the protocol, proportional to sales volume

Some notes: The 50% to apps would include Rarible.com. The rewards would be scaled quadratically so there is no single entity taking the lion’s share of rewards. Each app can decide on their own split of % going to creators / buyers vs. the platform. Apps receiving rewards would need to be whitelisted by the DAO.

Proposed token distribution (Phase 2 ~1-2 months from now)

  • 75,000 tokens weekly
  • 25% to the Rarible DAO
  • 15% to RARI stakers
  • 50% to apps building on the protocol, proportional to sales volume
  • 10% to liquidity providers (ideally consolidating liquidity from Uniswap and Sushiswap)

This proposal is to kick off Phase 1. Additional improvements (included in Phase 2 or shortly after) could include: modifying rewards such that there is a cap on the value of tokens going to app builders, with the remainder going to the DAO. In this case, rewards would adjust dynamically based on token price, and possibly also sales volumes of these apps.

Note that these changes aim to solve liquidity / price volatility issues and well as incentives for apps to build on our protocol. It does not solving wash trading (which is a separate and super important topic that needs to be discussed also!).

Please share your thoughts below!

A special thanks to Bibimbap, AH, and others in the Rarible DAO telegram who helped push things forward on this front!

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Phew, that’s a lot to take in and absorb. Great info. Thanks for sharing :100:

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this is excellent news :yellow_heart:

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Looks better and better. Hopefully will get implemented soon .

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image

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How do you envision the whitelisting process would work with the DAO?

Yeah, I would imagine so