Phase 3: Everything you need to know

Published in

Float Protocol

4 min readMar 28, 2021

As you may or may not know by now, Float Protocol’s Phase 2 distribution is being shortened and Phase 3 will begin in its place. This change was initiated by a community discussion and subsequently put to a Scattershot vote. This vote passed overwhelmingly: 23.2k BANK to 675.41 BANK (see here).

TLDR

Phase 2 will end 1 week early on Sunday 28th March at 10pm UTC. It will be replaced by Phase 3 which will start immediately (i.e. also on Sunday 28th March at 10pm UTC).
Phase 3 will last 6 weeks and all rewards previously allocated to the second week of Phase 2 (10,500 BANK) are to be distributed only to the BANK-ETH SLP pool.
If you are already in the incentivised SLP, you do not need to unstake/restake (it is the same pool but with different rewards).

Background

As a reminder, we have been distributing BANK tokens (the governance/profit and support token of Float Protocol) for around 7 weeks (as of Sunday 28th March).

6 weeks of this was Phase 1 or, as we called it, a ‘Democratic Launch’ (you can read more about our thinking here). During Phase 1, there was a whitelist (of engaged governance participants in other platforms) and there was a cap on deposits of $10k per pool. This was to allow a broad and active supporter base for FLOAT. 10,500 BANK was distributed per week (so 63,000 in total in Phase 1).

Phase 2 was meant to last 2 weeks and remove all restrictions, to allow wide distribution and create a deep BANK-ETH pool for use in our stabilisation auctions once the protocol was launched. 10,500 BANK per week was meant to distributed (so 21,000 in Phase 2 across the 2 weeks).

A community member (Matija/@carebbear) raised a discussion on our forums early this week that Phase 2 was not achieving its goals. Without rehashing the discussion here, you can read more here.

After overwhelming community support, we decided to put it to a Scattershot vote (our Snapshot fork). This vote ran from Weds 24th March to Friday 26th March. See more here.

Democracy and community matters hugely to us. This is why we created Scattershot, since we wanted to allow our community members to give their opinion. We have run three votes to date (see list here) and, whilst we are always strongly committed to our plans, we are open to guidance from the community if there is an improvement to be made.

The details

From Sunday 28th March at 10pm UTC, Phase 2 will end and Phase 3 will begin.

In Phase 3, the only pool that will receive rewards is the incentivised BANK-ETH SLP. This pool will receive all of the rewards previously allocated to week 2 of Phase 2

The rewards for the incentivised BANK-ETH SLP will be as follows:

Week 1 (commencing Sunday 28th March) — 3000 BANK
Week 2 (commencing Sunday 4th April) — 2500 BANK
Week 3 (commencing Sunday 11th April) — 2000 BANK
Week 4 (commencing Sunday 18th April) — 1500 BANK
Week 5 (commencing Sunday 25th April) — 1000 BANK
Week 6 (commencing Sunday 2nd May) — 500 BANK

Important things to note

If you are already in the incentivised BANK-ETH SLP, you do not need to unstake/restake. Nothing has changed for this pool except the weekly rewards.
The contract for the SLP pool in Phase 3 is based on the same template as Phase 1 and 2 (i.e. the Synthetix pools contract, which is probably the most battle-tested in crypto). You can check these out on github if you are curious. They have been peer-reviewed widely and used considerably over the last week (over $1bn TVL).

If you have any questions, ping us on any of the socials.