Transfer $500,000 USDC to provide initial prizes for the launch of the V4 prize pools. Transfer the USDC to a new “Executive multi-sig” using the same members but higher confirmation requirements as the operation multisig.
Motivation
All prize pools have a “cold start” problem. Initially the prize will be $0 until deposits are made. This is especially problematic when rolling out a new prize pool because we want a large and exciting prize to attract people to deposit and start the flywheel of growth (large prizes attract deposits, deposits make the prizes larger, etc.). This initial USDC transfer will enable the protocol to boost the initial prizes to be $50,000 per week.
Rationale
The idea behind the requested amount is that this will fund a $50,000 weekly prize for a minimum of 5 weeks. $50,000 is a bit more than our recent USDC prizes but will have WAY better odds so it is attractive. At the same time it’s not a crazy high amount of money. The V4 introduction will be a rollout and we should expect there will need to be some early optimizations, etc. made. As such, I think it makes sense to start with a smaller amount of money and as things are fully optimized we can boost it to grow faster and make a bigger splash.
At a technical level the money will be deposited into the V4 “draw prize” contract. This is the contract that winners claim against. This prize draw contract will be under the control of a multi-sig at launch. Thus this proposal assumes the money and control of that contract will go to an “Executive multi-sig” which is the same members of the Ethereum and Polygon operations teams with a higher level of confirmations.
It is also worth noting any yield accrued by the V4 prize pools will also go from reserve contract into the prize draw contract. So this amount of money should actually be enough to boost prizes for much longer as it will be replenished to some degree.
Technical Specification
Transfer $250,000 USDC to Polygon Executive Multi-sig
Transfer $250,000 USDC to Ethereum Executive Multi-sig
1MM makes for better headlines, and social media influence
Greater potential to reach new audiences
Yield generated by deposits recoups part of the spend
Implementation option 1
100k a week USDC prize at launch instead of 50k
At 50MM USDC deposited we begin increasing the prize by 10k USDC for every 5MM USDC deposited, creating drive for depositors to reach new milestones as one big pool party
Set a goal, 100MM deposited by EOY. Or sooner?
Implementation option 2
Start smaller, 50k USDC a week a launch
Increase the prize by 10k USDC for every 5MM deposited past 25MM USDC
Same goal
The focus of the launch: 1 million dollar prize bonanza pool party
I would think we can put half of the funds into a time release contract if there is concern for the custodial risk of the multi-sigs
I’m all for going with $1 million. I like the narrative around it.
I’d advocate we still start at the lower prize level (50k weekly) because 1) we want to keep testing things and 2) I think psychologically seeing the prize grow each week is powerful.
(Just want to add here, that I’m against making any rewards on “per wallet” basis. That would be really easy to game and would kind a punish people that are “only” using one wallet and reward people with multiple wallets)
I also think it needs to be $1M for the psychological effects.
I do think it should be a mega prize win where one wallet or multiple players win at least $1M after 30days or so.
As I’ve said on discord we need to get this viral, where everyone on CT is talking about it and tracking the prize going up each week, the guys at Bankless can incorporate it in their weekly rollups to keep everyone informed (creating a Twitter bot that tracks the pool is also a good idea), this could be the catalyst for PT to become part of everyone’s portfolio, which IMO should already be a part of it.
We could start with a prize pool of $500k and as more people deposit we can have a #roadto1million where the goal is for all of crypto twitter to deposit and get the prize to $1M, also, we need NFT’s to be given out to everyone that deposits as an additional incentive, perhaps pplpleasr could create the art with a 1/1 being part of the main prize.
Love the $1M pool party narrative to get this started,
I wanted to echo @0xTopa’s feedback on adding an additional NFT incentive in prize pools to add to the fun. This NFT should NOT have a pooltogether connection. It should be a popular (fractionalized) NFT token…such as a few 1/1 fractionalized NFTs from pplpleaser (as @0xTopa suggested) or something from charged particles (IONX) etc - if you can leverage your relationships @Leighton at short notice.
In full agreement with the sentiment here. Make it a million and stretch it. Great headlines. Can be also used well in marketing campaigns such as the Bankless media blitz!
