I am very excited that we are taking fifty percent of the prize money each week to add to the treasury, and exponentially grow the prize money. The next step is to decide how to allocate the capital. While still having much more to learn and understand, in my humble opinion, one of the only things left to improve is the POOL token utility. I propose having a separate drawing each week for POOL token holders. 3-5% of the reserve each week is allocated as a prize for 1-5 winners. To be eligible, all you have to do is hold pool tokens in a wallet. The maximum entry is 500 POOl. One pool token equals one ticket/entry up to the maximum entry. While the prize is small now it will grow rapidly and eventually be a meaningful and intriguing prize for simply holding POOL tokens. POOL pool depositors (pPOOL holders) would also be eligible up to the max entry level. this creates incentive to deposit in the POOL pool, but also for users trying to avoid gas fees to deposit in pools to be eligible for prizes simply for holding POOL tokens. This mechanism could be modeled after the LOTTO protocol. We could copy the source code they use to track token holders. this prize would be paid out in the corresponding assets. If you win this drawing you receive a diversified prize. Right now that would be 3-5% of the 50% reserve of DAI, USDC, UNI, and COMP. The gas fees to award this prize could be taken from the reserve as well. This would be a very small percentage. Overall, this prize strategy would incentive people to hold POOL and pPOOL in their wallets. This is creating more winners each week and creating an opportunity for users to have a chance to win outside of the main drawings.
Buy, Hold, WIN. PoolTogether, where we swim in cash!
I really like this idea. you could deposit into the POOL pool, mine POOL, be eligible to win the POOL pool prize, and be eligible to win a piece of the governed pools interest. the prize would also be much smaller than the main pools, so you dont give people a reason to not deposit in those. that is key, we have to keep the incentives highest in the main pools in order to generate the reserve in the first place.
I think i have typed the word pool more than any other word over the past couple months and it isnt even close. haha. great idea @fleetwoodfo
5 LOTTO tokens are automatically removed from all user wallets, pooled together, and given to one user at random.
So itās quite different from the mechanism youāve proposed. That being said, I like your idea and it would definitely be a way to incentivize people to hold POOL tokens.
Would people supplying POOL tokens to an AMM (Uniswap, Sushiswap, ā¦) also be eligible to win this prize?
I am not sure about the tokens in Uniswap or sushiswap. I do not know enough about the coding that goes with it but I think if the max entry is a little lower then that would be fine. Maybe a 200 max entry would be better to keep the smaller fish like myself involved but also keep the whales to hold. In the beginning the prizes will be small but in the very near future the reward will be large enough to keep everyone involved and also create an urgency for anyone to buy pool tokens. Once they buy because of the obvious benefit they will most likely see the greatness this protocol provides and take part in other pools as well. Iāve tried many times to talk my self out of this idea but the more I think about to the more I think it is a great thing for this protocol. We would be taking from the reserve but we gain massive utility with the token and also have a very high probability of adding many more users so in actuality it could massively add to the reserve and locked amount. When the prize is 50,000 plus why would anyone not hold at least a few pool tokens? and 50k is still just the beginning. We could have a seperate pool for holding pool tokens with a larger award than the Powerball. I am new to this but also think this is a random idea that could be a game changer. I do not think anything is set in stone and all numbers should be up to debate. Please elaborate more on all of it so we can narrow it down and help get this passed along. I want to see this protocol have 10 billion locked, and while I already think it will, I just want to help make it sooner!
I think pool LPs should definitely be included. Just have to have a way to track the LP token holders and how much POOL they have in their position at drawing time. It could be pretty tricky with impermanent loss. Donāt the amount of tokens you own in the LP change with price change in the underlying asset? Thatās essentially what impermanent loss is? So your amount of entries as an lp provider would be in flux. @Pierrick@fleetwoodfo@Taliskye
Yes exactly, maybe tricky to track.
Technically speaking, we need to study the feasibility of this solution cause the protocol hasnāt been built around the idea that any wallet holding the POOL token could receive the prize.
While I like the idea, I think the broader discussion points to be considered are how we deal with the reserves: these include paying for opex, putting these to use as sponsorship capital (to continue bolstering the protocol), holding these towards diversifying treasury and additionally using these to deepen liquidity for POOL.
I think the community needs to ultimately decide the order of prioritisation - and then move ahead with the appropriate allocations.
A cool idea would be to somehow incorporate holding POOL as a way to āboostā your chances and/or rewards. Just riffing here, but itās something to consider.
Roadmapā¦ yes! We as a community need a roadmap! We need some really loose pointers on what PoolTogether Inc. is doing to encourage the protocol to move further into full decentralization!
We, as a community, need to come together on what important. I believe this is becoming clearer with the introduction of the Swim Meets and Swim Teams community effort but we need some community members to get these meetings in other timeframes. But I do think some of the asynch efforts in the notion page and trello board is coming together.
I personally think this is somewhere down the list of priorities, with LPing, L2ās, and POOL distribution among governance pools being the top priorities.