DAO Vote #2: Liquidity Provision Incentives
Following the initial steps towards DAO-driven operations, DIA is preparing to leverage the power of the DAO to amplify exposure and engagement in the crypto sphere. This introduction will give you an overview of the plans and introduce the first proposal.
Update 10.03.2021: DIA’s team proposal has successfully passed. Liquidity providers that have been providing liquidity since the start of the year will be also included in the allocation retroactively. The payouts will be claimable at the end of the year 2021 and distributed from 01.1.2022 onwards, vested over the following 6 months.
The beauty of decentralisation in the crypto sphere is not only that a new ecosystem of trustless products emerges, promising financial freedom and inclusion. The types of products that emerge allow ownership and direct participation. To start paving the way towards full-fledged DAO governance, DIA is taking the next steps by opening participation on specific DAO decisions.
After the first DAO vote about the usage of treasury funds in December 2020, we want to include the community in specific allocations of funds for communication and marketing efforts. In this context, the core team will present a range of proposals for the usage of the funds for marketing activity and open the discussion and voting on regular proposals to the DAO community as well as leveraging the wisdom and expertise of the community to get additional input and proposals. Topics will include liquidity provision, KOL marketing, social mining campaigns and more.
To kick off, we present the DAO with a first proposal to incentivise liquidity provision for DIA. Here is an overview of the proposal:
DIA DAO Proposal #2: LP incentives
Overview
The DIA core team proposes an allocation of a total of 300.000 DIA from the treasury to incentivise the provision of liquidity for DIA in ETH and USDC on Uniswap and Sushiswap during the calendar year 2021.
Benefits
- The provision of liquidity is an essential component in ensuring an efficient price across exchanges.
- Incentivising liquidity provision will effectively create an incentive to remove supply from circulation, removing sell pressure.
- Incentivising liquidity provision may cause direct demand for DIA tokens by potential liquidity providers, increasing buy pressure.
- Creating value for liquidity providers in addition to earned liquidity provision fees.
Allocation
- The allocation of rewards will be done proportionately, based on the amount of liquidity posted over the period under consideration, as determined by snapshots of the network taken on a daily basis.
- Only ETH and USDC liquidity pools on Uniswap and Sushiswap will be considered.
- The timeframe under consideration is from January 01, 2021 to December 31, 2021. LPs that have been providing liquidity since the start of the year will be included in the allocation retroactively.
- The attribution will be based on the nominal amount of DIA posted, regardless of how the price of DIA develops over time.
Distribution
- Rewards for LP provision must be actively claimed. This will be possible starting January 15, 2022 on the DIA website.
- Rewards are allocated to the wallets that provided the liquidity pools linearly over 6 months in 30 day intervals starting at t+30 days from the day of the claim to avoid concentrated sell pressure.
Proposal timeline
- Voting is enabled starting Friday, March 05: 15:00 UTC
- Voting ends on Tuesday, March 09: 15:00 UTC
This is the link to the proposal: https://snapshot.page/#/diadao.eth/proposal/QmVo13kJd3gcCcuvhS4qTSmEDuFzCGhCEBWkTkKXaP1zVM
PS: Please refer to the respective exchanges’ channels for instructions on how to provide liquidity.
