XIP-26

Establish a GP Reserve Fund

authorkmao
typeintegration-upgrade
networkBase
statusApproved
created2024-05-14

Proposal Summary

XIP-26 aims to establish a GP reserve fund and improve the existing GP distribution, without diluting GP holders.

Specification

Overview

There has been a lot of discussion around GP's distribution and mechanics. This XIP aims to address all of these concerns and finalize its details. The proposed changes include:

  1. Establish a GP reserve fund for future incentives, whilst maintaining the Patron NFT peg.
  2. Improve and finalize the distribution of GP.
  3. Clarifying the prior airdrops.
  4. Clarifying the Patron NFT redemption mechanism.

Rationale

In XIP-21, Infinex locked the supply of GP at 600 million and established a "peg" for the Patron NFT, allowing users to burn 200,000 GP for a Patron NFT. Since the supply was capped, and the Patron NFT is expected to release in coming months, Infinex now has no ability to offer incentives for new programs, which have been proposed by various community members. Furthermore, due to the non-divisibility of NFTs, only limited incentive programs are able to be established.

Technical Specification

Establishing the "GP Retirement Fund"

Following the supply cap of GP, various community proposals (XIP-24, XIP-25) have popped up which aim to grant additional GP to more communities. Due to the cap, these proposals have taken a negative-sum approach, reducing other communities allocation in exchange for increasing another communities.

This proposal aims to allocate another 150 Patron NFTs to the GP pool, which allows Infinex to increase the max supply of GP to 630,000,000, whilst maintaining the conversion rate of 200,000 GP for 1 Patron NFT. This additional 30,000,000 GP will be allocated to the "GP Retirement Fund", which will operate as a community operated fund of GP, in which future proposals can propose to take GP from it. The Treasury does not aim to manage this.

This will not dilute any existing GP holders, as the peg between GP and Patron NFT is maintained, and will allow for Infinex to collaborate with more communities without negatively impacting prior partnerships.

Finalizing the Distribution of GP

The prior table outlines Infinex's prior distribution of GP.

Current

Allocated

Spent

Governance Point Farming

88,262,010.31

88,262,010.31

Discord Activity (GPEC)*

5,000,000

1,289,346

Twitter Activity (GPEC)

5,000,000

714,653

Governance Call Participation (GPEC)

20,000,000

3,272,359

Discord Competitions & Events (GPEC)

5,000,000

780,001

Approved XIP Authors

10,000,000

0

Farcaster Campaigns

5,000,000

0

STW

377,815,424

377,815,424

Pudgy Penguin Airdrop

19,553,600

0

Milady Airdrop

20,000,000

0

Berachain Airdrop

10,027,600

0

Mad Lads Airdrop

19,930,000

0

Keng Lernitas Airdrop

20,488,800

0

Infinex Early Supporters Airdrop

10,000,000

0

Total

616,077,434.31

467,414,793.31

*GPEC refers to XIP-15: Governance Points Engagement Campaign.

I did not effectively account for the additional points earned via the referral program of Governance Point Farming, and thus has seen a miscalculation of 11,069,435.31 GP**.**Furthermore, Infinex believes that the allocations to the GPEC were too high, as only 6,056,359 was spent out of allocated 50,000,000 GP, after 3 months. Since GP aims to be depreciated following the launch of the Patron NFT (~ 3 months), Infinex estimates that a majority of the allocated GP will not be spent.

As a result of this, Infinex proposes these various changes:

  • Reduce the Governance Call Participation allocation from 20 million to 10 million.
  • Merge the Discord and Twitter allocation as a single one, and reduce it's allocation to 7.5 million.
  • Reduce the Approved XIP Authors allocation to 7.5 million.
  • Reduce the Discord Competitions & Events allocation to 2.5 million.
  • Move the remaining GP to the retirement fund.

This is the proposed future allocation of GP:

Proposed

Allocated

Spent

Governance Point Farming

88,262,010.31

88,262,010.31

Discord & Twitter Activity (GPEC)

7,500,000

2,003,999

Governance Call Participation (GPEC)

10,000,000

3,272,359

Discord Competitions & Events (GPEC)

2,500,000

780,001

Approved XIP Authors

7,500,000

0

Farcaster Campaigns

5,000,000

0

STW

377,815,424

377,815,424

Pudgy Penguin Airdrop

19,553,600

0

Milady Airdrop

20,000,000

0

Berachain Airdrop

10,027,600

0

Mad Lads Airdrop

19,930,000

0

Keng Lernitas Airdrop

20,488,800

0

Infinex Early Supporters Airdrop

10,000,000

0

GP Retirement Fund

31,422,565.69

0

Total

630,000,000

467,414,793.31

Clarifying Prior Airdrops

In XIP-21, Infinex established an airdrop for Pudgy Penguin, Milady Maker, Bit Bears, and Mad Lads holders, which included the following criteria:

"Recipients of the Pudgy Penguin, Milady Maker, Berachain or Mad Lads airdrop are required to sign up for an Infinex account, deposit at least 50 USDC into their account. Once STW ends, users will be able to connect and verify their wallets which holds their NFTs, and then claim their GP directly into the Infinex account."

This XIP proposes that the criteria of signing up for an Infinex Account and depositing at least 50 USDC, extend to the Keng Lernitas and Infinex Early Supporters airdrop recipients. Furthermore, the unclaimed GP will remain unclaimed indefinitely, and users can redeem an unclaimed airdrop whenever.

The GP associated with an NFT will not expire. However, it must be connected to an Infinex account that has deposited at least 50 USDC during the STW campaign. Furthermore, the airdrop is linear per NFT, and users will be able to connect several EOA accounts to their Infinex account in order to claim their airdrops.

Clarifying the Patron NFT Redemption Mechanism

This XIP also proposes further functionality in regards to the mechanics of the Patron NFT swap.

On the release of the Patron NFT, Infinex will deploy a pool of 3,150 NFTs. As I believe it is unfair to impose a time limit on airdrops, Infinex will not implement any admin withdrawal functions and leave the pool open for redemption until the end of time, allowing any user with 200,000 GP to redeem their GP for a Patron NFT.

Copyright

Copyright and related rights waived via CC0.

Contribute to Proposals on GitHub