UMA KPI Options for DOUGH Staking 2.0

#1

Summary
To reuse UMA KPI Options to incentivise community participation to strengthen and improve DOUGH-staking activity.

What are KPI Options-

Key Performance Indicator (KPI) options are synthetic tokens that will pay out more rewards if a project’s KPI reaches predetermined targets before the given expiry date. Every KPI option holder has an incentive to improve that KPI because their option will be worth more. This is intended to align individual token holder interests with the collective interests of the protocol.

PieDAO initially launched UMA KPI Options here for DOUGH staked using UMA’s Long Short Pair (LSP) contract template and the Optimistic Oracle to create the tokens which payout rewards after certain milestones were crossed.

Objective-

Owing to the success of the first KPI Option on DOUGH staked, efforts are concentrated on using the options to realign interest and strengthen DOUGH-staking activity.

This time the options will be distributed to everyone who stakes DOUGH until the payout at expiry. This amplification will incentivize veDOUGH holders and new community members towards the metric of increasing DOUGH staked. And with a large and engaged community of thousands of members, I believe that issuing KPI options is an excellent approach to coordinate these actions while also providing tokenomics incentives.

Design-

Metric tracked: Total amount of DOUGH staked.

KPI Option duration: 6 month. Expires 31st October 2022.

Collateral option: DOUGH

Amount of collateral locked: 10 million DOUGH

Amount of KPI Option minted: 10 million

Converting value of options:

  • If at least 20m DOUGH is staked at expiry of KPI options (31th Oct 2022), the 10m KPI options will convert to 0.25 DOUGH per option.
  • If at least 25m DOUGH is staked, the 10m KPI options will convert to 0.5 DOUGH per option.
  • If at least 35m DOUGH is staked, the 10m KPI options will convert to 0.75 DOUGH per option.
  • If 45m DOUGH or higher is staked, the 10m KPI options will convert to 1.0 DOUGH per option.

This is represented below:

(DOUGH STAKED) KPI option value (per option) Option converting value (DOUGH)
20,000,000 0.25 2,500,000
25,000,000 0.50 5,000,000
35,000,000 0.75 7,500,000
45,000,000 1.0 10,000,000

Distribution mechanism: Airdrop of options to all veDOUGH holders a week before KPI Option expires on a pro-rata basis.

The above parameters are an amplification of the last round of KPI options. The community would need to express their opinion on the proposed parameters to move DOUGH to mint the KPI options.

Conclusion-
I believe the KPI option initiative is an ample step to upgrade DOUGH staking activity and to incentivize a larger number of people to accomplish that.

  • a) For
  • b) Against
  • c) Need more information

0 voters

10 Likes
Ways to Improve the Tokenomics of DOUGH
#2

Hey Victor,

Thanks for making your first proposal on the forum !

Questions on my side :

  • Rewards would be applied for the newly staked or for all
  • Are the amount of Dough milestones “random” ? Are they fixed ?

I like to be ambitious but we achieved 15 Mil recently (50% of circulating supply)
So that means that current circulating supply is around 30 mil.
If 45 mil needs to be staked, it means emit at least 15 mil right ? (if 100% staked)

3 Likes
#3

Inalittlewhile from the SuperUMAns stopping in to show support and help answer any questions that may come up. Excellent proposal @Victorfela

3 Likes
#4

Thank you @Victorfela for working on this proposal! To me feels too early to plan a new KPI before doing the aftermath of the first one but in general I definitely share the sentiment that KPI would likely play a role in future incentives.

2 Likes
#5

Thank you Snook for your reply.

For the first question, rewards will be applied to all staked (veDOUGH holders) at the time of expiry. This is to encourage long term commitments and to likewise incentivize more staking actions.

For the second question, the numbers for the designs were practically conceptualized, on reflection of a decent target as at the time.
But I completely understand the maths surrounding supply and the need to edit/raise the numbers for feasibility.

But as I highlighted in the proposal, the numbers are open for debate on what’s deemed workable. I appreciate your comment and I would like to know what approach the community thinks is best for this.

#6

Thank you, Alex.

Before coming up with the proposal, I was engaged in a retrospective on the first round of the KPI Options and which as a result of its success on that end, birthed a need to concentrate interest to suffice another set of the KPI Option; to keep momentum with all the first KPI round has set to achieve and to strengthen DOUGH staking activity.

If you will ask me now is the best time. :+1:

#7

I like that newcomers will not be penalized and wait after the expiration to buy and also that current holders also get rewarded. I think with another initiative like that, we could probably have most of the circulating tokens locked for a few years.

I also think the sooner the better.

I like it all maybe just a little number adjustment. You got my vote. Good job.

2 Likes
#8

This is great. Incentivising LPs is why most, if not all people are seeking vaults, strategies, pools and farming. I think that keeps the hodlers hodling and others see that, they want a piece, and that generates more attention to the project.@Victorfela great proposal and I see you put a lot of work into this. The proposal didn’t receive any “no’s” maybe you should entertain those who would like to know more with a AMA or campfire chat so their questions can be answered directly. I think understanding the proposal and KPI’s for this, going over those numbers would really help get everyone on the same page, move some numbers around and come to a good conclusion, get more folks investing in PieDAO and collecting rewards. Good stuff.

2 Likes
#9

I’m hesitant to support a second round. My thoughts below:

This seems to be a case of a double edge sword: on one side we’d like to increase the community support and pump staked Dough amounts, on the other hand that’d lead to dilution on the voting power of each member potentially leading to an attitud against this initiative.

I personally believe that the KPI Options first round were a nice experiment wich lead to set a threshold of supporters, yet we should find more organic ways to reach those goals, using those 10 M Dough to reward efforts that lead us there on a more sustainable way.

Regardless my comments, here’re some questions about the proposal:

  1. Max payout is set on 45M while the current tot circulating Dough is 31.23 M. Are we considering minting nearly 14 M Dough if needed? What are the economic implications of doing so?
  1. The distribution mechanism is defined to airdrop the options a week before they expire. What would happen to those users that staked during the last week?
  1. What will be the staking period length determined for the veDough after redemption?
2 Likes
#10

Based on the constructive feedbacks and comments on the proposal, the proposal is refined to as follows:

Objective -

…in addition to realigning interest and strengthening DOUGH-stacking activity, efforts are also focused on having 100% circulating supply of DOUGH (30m) locked In the staking contract.

Specification -

Converting value of options (at expiry):

• Max value of KPI Options will be redeemed for DOUGH at 1.0 per option if 30m DOUGH is staked (100% circulating supply).

• If at least 25m DOUGH is staked, the 10m KPI Options will be redeemed at 0.5 DOUGH per option.

Represented below:

(DOUGH STAKED) KPI Option value (per option) Option converting value (DOUGH)
25, 000, 000 0.5 5, 000, 000
30, 000, 000 1.0 10, 000, 000

With over 15m DOUGH currently staked, the outlined milestones seek to facilitate optimal execution of the KPI Options with substantial participation.

N:B The above changes applies to the deliverable on the proposal below :point_down:

Summary
To reuse UMA KPI Options to incentivise community participation to strengthen and improve DOUGH-staking activity.

What are KPI Options-

Key Performance Indicator (KPI) options are synthetic tokens that will pay out more rewards if a project’s KPI reaches predetermined targets before the given expiry date. Every KPI option holder has an incentive to improve that KPI because their option will be worth more. This is intended to align individual token holder interests with the collective interests of the protocol.

PieDAO initially launched UMA KPI Options here for DOUGH staked using UMA’s Long Short Pair (LSP) contract template and the Optimistic Oracle to create the tokens which payout rewards after certain milestones were crossed.

Objective-

Owing to the success of the first KPI Option on DOUGH staked, efforts are concentrated on using the options to realign interest and strengthen DOUGH-staking activity.

This time the options will be distributed to everyone who stakes DOUGH until the payout at expiry. This amplification will incentivize veDOUGH holders and new community members towards the metric of increasing DOUGH staked. And with a large and engaged community of thousands of members, I believe that issuing KPI options is an excellent approach to coordinate these actions while also providing tokenomics incentives.

Design-

Metric tracked: Total amount of DOUGH staked.

KPI Option duration: 6 month. Expires 31st October 2022.

Collateral option: DOUGH

Amount of collateral locked: 10 million DOUGH

Amount of KPI Option minted: 10 million

Converting value of options:

  • If at least 20m DOUGH is staked at expiry of KPI options (31th Oct 2022), the 10m KPI options will convert to 0.25 DOUGH per option.
  • If at least 25m DOUGH is staked, the 10m KPI options will convert to 0.5 DOUGH per option.
  • If at least 35m DOUGH is staked, the 10m KPI options will convert to 0.75 DOUGH per option.
  • If 45m DOUGH or higher is staked, the 10m KPI options will convert to 1.0 DOUGH per option.

This is represented below:

(DOUGH STAKED) KPI option value (per option) Option converting value (DOUGH)
20,000,000 0.25 2,500,000
25,000,000 0.50 5,000,000
35,000,000 0.75 7,500,000
45,000,000 1.0 10,000,000

Distribution mechanism: Airdrop of options to all veDOUGH holders a week before KPI Option expires on a pro-rata basis.

The above parameters are an amplification of the last round of KPI options. The community would need to express their opinion on the proposed parameters to move DOUGH to mint the KPI options.

Conclusion-
I believe the KPI option initiative is an ample step to upgrade DOUGH staking activity and to incentivize a larger number of people to accomplish that.

#11

Thank you @Adrian.A for your feedback.

  1. There have been modifications to those numbers here UMA KPI Options for DOUGH Staking 2.0 - #10 by Victorfela
    So there won’t be any need of minting extra DOUGH or conflict on operability as the initially proposed numbers were only conceptual and were opened to debate.

  2. Based on the design, they won’t be eligible for the options as a snapshot of veDOUGH holders would have been taken a week to expiry; to identify and collate eligible addresses to hasten distribution and redemption and not drag the process after expiry. But if you suggest we stretch the timeline, that can work as this is solely just to have the whole redemption process settled at expiry.

  3. If I get your question right, the staking period length before issued veDOUGH should be decided by the DAO.

Regarding the points you raised, I clearly understand your concern about diluting the governance system but still, I will like to highlight that this cannot be “ideally” controlled by withdrawing initiatives like this (as there is no # number of people reserved for governance participation or a cooperate number of participants to the best of my knowledge) and also an active governance participation usually spring from genuine interest in the DAO.

For instance I hold tiny amounts of governance tokens of few DAOs and I vote as much as I can but not compared to the DAO I’m actively engaged as that is where my money lies. And It’s not because of the occasional airdrops (although they are very nice). It’s because I genuinely believe in the DAOs. So I might not vote every single time, but I try to.

And on the brighter side, governance dilution tends to encourage more streamlined governance activities; giving more power to token holders, and aligning and channelling their interests to grow the DAO.

Also logically, the KPI initiative suffices for an organic approach to achieving these goals and the rewards tied to it are only just compensation-based.

#12

sorry, but this does not match the specifications at the top of the same post. Could you check?

#13

Yes. @Adrian.A
These values are modified to the ones I raised.

|(DOUGH STAKED)|KPI Option value (per option)|Option converting value (DOUGH)|
| — | — | — |
|25, 000, 000|0.5|5, 000, 000|
|30, 000, 000|1.0|10, 000, 000|

#14

Could you share the notes or recording of that retro? Who was part of it?

1 Like
#15

The retrospective was an internal effort within the SuperUMAn DAO on integrations with the DAO. No hard resource or so I can point to as conversations regarding the retrospective was in-house in the thread. But in course of the retro, we got positive comments from the likes of 50shadesofgwei, Jamie on their perception of the KPI option and which lead to a working group around having a second round of KPI options.

#16

Hello all ;

Here is the snapshot vote for this vote : [Generic Gate 1] BasketDAO acquisition proposal

For your information, there’s another vote which didn’t match the governance ; This vote participation is not eligible for Slice Distribution.
Please disregard the other vote

#17

get me right… i certainly like more money … but … i dont quite see the purpose on giving away more DOUGH we might need later for strategic partnerships or other things to grow… as of now this rewards mostly whales, sure no dumping because its locked … but still i dont quite see the purpose since its DOUGH from the Treasury,

3 Likes