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.
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.
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)|
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.
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