This is first of the “Gro Renewed” series on how Gro protocol upgraded to offer higher yield stablecoin products, an updated tokenomics, and user interface improvement. Read on to find out what’s changed!
Gro updated its tokenomics following Vote 005 where Gro DAO decided to offer more flexibility and make $GRO more appealing to users with both short- and long-term horizons. No matter whether you’re an industrious yield farmer or a HODLer with strong conviction on Gro, you’d now find better economics with our governance tokens $GRO!
Remind me — how did $GRO tokenomics work?
Half a year ago we introduced $GRO tokens for the first time. We set aside 45% of total token supply to reward early supporters and active participants that engage with the protocol continuously. That is why we created a 12-month vesting mechanism where early leavers give up their unvested tokens to other $GRO holders continuing to vest; the HODLers in return need to hop over to Gro dApp periodically to claim the juicy bonus.
Since then, 700+ unique users claimed from the Vesting Bonus pool based on this Dune dashboard created by one of our most dedicated DAO members Slacking. But we have also received feedback from the community that the mechanism could benefit from more flexibility, so that $GRO would appeal to a wider audience within the crypto community.
What are the upgrades all about?
The first thing Gro DAO members asked was to create a more symbiotic relationship between protocol performance and GRO tokens. It’s only natural to request that — after all many DAO members got to know Gro after using our protocol to access DeFi yields more easily. A modest performance fee was introduced at 5% for Vault & PWRD and 10% for Labs products as a result. 90% of the fee collected will be channeled to buy $GRO from the open market and deposited into the Vesting Bonus pool for the long-term HODLers to claim regularly; the rest would be used to replenish Gro DAO treasury to support future growth initiatives. This ensures that Gro DAO members have direct access to the fruits of their own labour as they continue to contribute ideas and effort in growing Gro Protocol.
Another ask from DAO members was to introduce more flexibility in earning GRO rewards. The original setup meant each member only had one vesting schedule, meaning DAO members could only either vest all GRO rewards or take out all of them. While Hamlet had every reason to ponder “to be or not to be”, the decision around whether to vest your GRO tokens need not be so binary.
That’s why a series of options are now available under the updated tokenomics. Every time GRO holders claim rewards, they can now choose whether to enter 12-month vesting with the full amount or take out 30% while forfeiting the remaining 70% to long-term HODLers. The twist is that you can make a different choice next time you claim new rewards, so you could determine what works best for you at that time.
Need more liquidity right now? Take out 30% from this month’s reward while leaving what you have earned in 12-month vesting. Rather build up your $GRO stack to get more from Vesting Bonus? Add the new rewards into your vesting position. You could also lock $GRO tokens acquired from the open market or relock $GRO tokens already unlocked for a higher share of that juicy Vesting Bonus pool. The choice of what to do with GRO tokens is entirely yours to make –– check out our docs for more details.
Last but not least, DAO members also asked for more gas-friendly ways to claim rewards and vesting bonuses. Those following your vesting bonus closely would already be benefiting from a longer cooldown period between vesting bonus claims that doubled from 2 weeks to 4 weeks. That means any DAO members would now spend gas once a month at maximum and each vesting bonus claimed would be twice as juicy. Besides, the long-awaited feature of claiming rewards from multiple pools in one go is also rolled out in this update!
Count me in! What do I need to do?
If you now have assets staked in either of the 6 pools here, you’d need to activate the new $GRO token contract here.
Before you ask — yes it’ll cost gas and yes there is a gas rebate for everyone who activates right away! Activate your addresses for the new tokenomics by 11th March 2022 and you’ll get back the gas you’ve spent from us.
Activating your wallet for better tokenomics is just like moving to a bigger house — it’s an event worth celebrating. To commemorate this we’ll also distribute a POAP to all who activated in the first month — get moving at http://app.gro.xyz/rewards now!
Got questions or other ideas you’d like to make happen for $GRO? Don’t hesitate to hop over to our Discord and Community Forum and share your thoughts!
Edited on 25 Feb to clarify when one needs to activate your address for the new tokenomics (only those with outstanding assets staked in our Pools would need to do so).
