[PIP-64] Reward Pie composition

The Reward Pie - $SLICE

As mentioned in the original proposal for DOUGH Staking and Governance Mining, the Reward Pie is intended as a way to compensate the DAO active participants that opted to align their vested interest to the long-term development of PieDAO, committing to stake their DOUGH over time to get veDOUGH.

First Reward Pie

The first $SLICE of Reward Pie is proposed to be distributed as of early November 2021, rewarding all active DAO members that, by the 31st of October 2021, will stake their DOUGH and take part in PieDAO’s governance.

The first baking of Reward Pie would benefit from Protocol revenues, Farmed assets and Treasury proceeds cumulated over several months of operations, resulting in a generous reward for all early DAO participants that will actively embrace the PieDAO Governance Mining at its fullest, setting this launch to become a Glorious event!

Initial Composition

The proposed composition of this first Reward Pie would be a mix of the following

  1. Protocol Revenues
    a) entire DAO Fee Pot, inclusive of Pie Streaming fees & Exit Fees on incentivised pools charged overtime;
    b) 16,082 $BAL farmed by LP positions held by PieDAO, no longer incentivised by Balancer (former PIP-19)

  2. Treasury Proceeds, resulting from both the Active Management of treasury assets & Farming strategies deployed by the Treasury Committee (TC) over the first 2.5 months of their operations.
    In order to stress the strategic importance of the DOUGH Staking launch, the TC exceptionally proposed to dedicate the entire alpha generated by End October to this first Reward Pie distribution! As of today the alpha vs Benchmark exceeds the 4.5%.

At current rates (Oct 8th, 2021), the first Reward Pie would be valued approx $ 1.35m.

NOTE: this $ value exceeds the cumulative $ value of all DOUGH currently staked, setting an unprecedented NET MONTHLY return > 100% for this first distribution alone.

The following monthly distributions will then be formed by Protocol Revenue (fee pot) & 60% of Monthly Treasury Farming Proceeds, as per initial proposal and forecast provided by the Staking Simulator.
We’d like to sense the consensus around this proposal, before moving it to snapshot vote as soon as the new veDOUGH governance will be implemented.

9 Likes

Was there any other plan for the DAO fee pot? I’m asking because rather than distribute it, the DAO might want to hold on to it so as to slowly and easily increase the % of liquidity controlled by the dao. Having guaranteed liquidity, event its its small right now, seems like a reasonable growth goal. Especially sense we can’t run doughpamine forever.

What is the reasoning for such a large distribution for the first month? While I am personally happy to receive a large payout like this, is it really in the best interest of the DAO?

…so #StayCrusty :handshake:

1 Like

Maybe this could be distributed over 6 months to help meet the KPI. Though I’m also inclined to not be diluted.

2 Likes

i like the early bird payout, thou as always i am 0.x % voter :frowning:

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I believe this should answer your question:

Treasury Proceeds , resulting from both the Active Management of treasury assets & Farming strategies deployed by the Treasury Committee (TC) over the first 2.5 months of their operations.

2 Likes

Maybe, in order not to dilute the free pot to few and in the same time not change the plan completely, what do you think about establishing some conditions such as:

  • IF by the end of the month >5M veDOUGH AND >200 wallets THEN 100% Free pot distributed
  • ELSE 60% Free pot distributed
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Snook suggested on the forum some kind of address capping (e.g. max 10ETH) but Alessio pointed out that this would only create the condition for people to use multiple addresses

1 Like

I do support this as is. The 1.35M would have been distributed already if the staking would have been available earlier, so it makes sense to distribute it all if there’s no other intended strategical use. It’s a fair benefit for long term supporters

2 Likes

Yes and the staking stats are looking good so far!

1 Like

Further to the initial proposal above, few discussions emerged on Discord over the past days, that should be voted on by the community regarding the First $ 1.35m Reward Pie set to be distributed as of early November to active DAO members.

1) Composition of the first SLICE distributed

Few key considerations emerged from the active research on the possible implementation of L2 redemption for SLICE:

a) having a market for SLICE is hard and difficult (need to either dedicate Liquidity or introduce incentives for that)

b) SLICE, as proposed above, would end up having too many assets, costly to redeem

c) Even with redemption on L2, many markets would be missing

Based on the above, a wiser approach would point toward the concentration of rewards into a limited amount of assets, representing the SLICE underlyings.

Assets farmed by the treasury, or contained in the current DAO fee-pot could be used instead by the Treasury Committee to mint a Pie, which would compose SLICE for the month.

This approach would come with multiple tangible benefits, among which:

  • the use of current existing markets, instead of recurring to the creation of new ones,

  • self-feeding TVL mechanism for PieDAO, which could just be delightful

  • this process could be actively employed to bootstrap liquidity for new pies

  • turns rewards from an unmanaged basket to a managed one.

  • rewards could also become yield bearing, depending on the Pie distributed within SLICE

Based on the above, the proposal would here be to employ either PLAY or BCP as first Pie for distribution within SLICE, which would be minted by the Treasury Committee employing assets of their choice among those part of the treasury (thus potentially keeping ready-to-farm assets that could be put to work right away).

A snapshot vote will be shortly available for everybody to express a preference on the above.

4 Likes
2 Likes

Excellent! I just voted!

1 Like

Brilliant! just voted in!

2 Likes

Oooh! I’m so excited! While I like PLAY, the BCP pie is a flagship product. The idea of getting rewards in pies would encourage us as a community to continuously review underlying pie holdings as well, so I think this is a well-aligned proposal.

3 Likes

Terrific, I’m all in

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Similarly as done for last month’ SLICE distribution, based on the same considerations made here somehow pointing toward the concentration of rewards into a limited amount of assets representing the SLICE underlyings, we’d need to find some consensus around which asset should be considered for topping up SLICE (Reward Pie) with this month rewards, set to be distributed as of early December to active DAO members.

NOTE: Important to stress the fact that SLICE will remain the same over time (i.e. not issued from zero every month), so any asset(s) used to top it up with new months rewards will be added to the current allocation of SLICE, resulting from the underlyings used over the previous months. Here below an example

The proposed options for this new reward distribution would be the following:

  1. mint PLAY to be distribute within SLICE, same as last month (this would maintain an allocation of 100% PLAY within SLICE)
  2. mint BCP as new asset to top up SLICE (resulting in a mixed allocation PLAY/BCP within SLICE, pro-rata to their $ value).
  3. Top up SLICE with a combination of farmed assets selected by the Treasury Committee:
    ALCX / LDO / CVR / 3CRV / CVX / ETH

A snapshow vote will be up shortly to gather consensus on the way to proceed.

4 Likes

Snapshot vote is up https://snapshot.org/#/piedao.eth/proposal/0xf3bc0cdfda038d07e93dd7aad7c572c760efd7b2661f13dfd4071dfec9ed855c

1 Like