Ongoing Governance Action: Initial Protocol Reward Distribution for Clarity DAO
We’re excited to be on track to create the Clarity DAOs first on-chain Agora proposal. This proposal will initiate the Clarity Protocol Rewards program and is currently in the temperature check phase before moving on-chain. These rewards are not just about recognizing contributions but also about fostering a vibrant ecosystem where every member feels valued and empowered.
Right now, this governance action is in a temperature check to see if it will get approved to move to an on-chain proposal. Live here: https://www.clarity.vote/organizations/Clarity/governance/polls/-NwkVW7y_fMqUBIcE9oi
After an open community forum, the following parameters are being proposed to initiate the Protocol Rewards Program.
1. Starting Monthly Reward:
After careful consideration and community feedback, the proposed starting monthly reward is set at 10,000,000 $CLARITY tokens. This allocation aims to ensure a sustainable incentive structure that motivates ongoing engagement and growth within our ecosystem.
2. Monthly Decay:
To maintain the dynamism of our rewards system, a monthly decay rate of 1% is being proposed. This will incentivize people to get involved now!
3. Instant Claim Rewards from Diamonds:
A portion of the Platform Usage Rewards, specifically 30% from month 1 (equivalent to 1,125,000 $CLARITY tokens), will be allocated for instant claim rewards from Diamonds. This mechanism ensures swift and seamless gratification for our community members who have contributed to the platform before the creation of the rewards program.
4. Determining How Platform Usage Reward Amounts are Calculated:
Individual reward amounts for Clarity Platform Usage rewards will be calculated based on a monthly leaderboard where community members will get a pro-rata share of this distribution based on the number of diamonds they earn relative to the total community during that time period.
Next Steps:
If the temperature check is approved, an on-chain and automatically executing treasury withdrawal proposal will be made. This treasury withdrawal will send funds directly to the Clarity Foundation who will ensure the rewards distribution runs smoothly.
Now, let’s delve into how these rewards are distributed across our protocol reward buckets:
Protocol Governance Rewards: 37.5% of monthly distribution (Month 1: 3,750,000 $CLARITY)
These rewards are earmarked for holders of the $CLARITY token who actively stake their tokens and leverage their stake to engage in governance activities. By participating in governance, you not only shape the direction of our DAO but also earn rewards as a testament to your commitment.
Clarity Platform Usage Rewards: 37.5% of monthly distribution (Month 1: 3,750,000 $CLARITY)
Our platform’s lifeblood, these rewards are dedicated to users actively engaging with the Clarity platform. Whether you’re participating in governance, referring new members, completing quests and challenges, or contributing to DAO building, your efforts are duly recognized and rewarded through diamonds.
Liquidity Provider Rewards: 25% of monthly distribution (Month 1: 3,750,000 $CLARITY)
Last but not least, liquidity providers play a pivotal role in ensuring the smooth operation of our ecosystem. As a token of appreciation, holders of the $CLARITY/ADA LP Token will receive a share of the rewards, further incentivizing liquidity provision and enhancing the overall stability of our protocol.
The establishment of these initial protocol reward distribution rates marks a significant step forward for the Clarity DAO. It underscores our commitment to fostering a vibrant and inclusive community where every member’s contribution is valued and rewarded. We invite you to actively participate in governance, engage with the platform, and contribute to the growth of our ecosystem.
To view the community conversation surrounding this governance action you can use this link: https://youtu.be/4l3tjxm5aAU
To understand how the DAO operates through a video format you can check out this link: https://youtu.be/bDD7uC68MDo
Thank you for reading Clarity’s blog!
Clarity is a community management system built for Cardano projects. We make it simple to create, manage, participate, and track contributions for decentralized communities.
On a human level, Clarity is a community of web3/DAO creators.
Clarity Whitepaper: https://docsend.com/view/5dxmuwzgptqxzvm7
Clarity Vision: https://www.youtube.com/watch?v=5nRwAVQ8LMM
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