Gro is launching a unique vesting model to drive long-term sustained engagement with the protocol. The basic principle is to increase the influence of DAO members who are engaged. If you interact regularly with the protocol and have a long-term view, then the protocol will increase your influence through the GRO DAO Token.
How to earn GRO — TLDR
- Earn GRO through airdrops, liquidity mining or Vesting Bonus.
- Claim your GRO into a 12-month vesting position.
- Come back every four weeks to claim your share of the GRO Vesting Bonus.
- Exit Rewards vesting whenever you want to receive GRO in your wallet. The longer you wait, the more you get. Any locked GRO you give up is added to the global Vesting Bonus Pool.
Edited on 4th July 2022 to update vesting and rewards mechanisms. For the latest information, please refer to our docs at https://docs.gro.xyz/gro-docs/GRO_tokens/understanding-tokenomics
Gro is decentralising governance by issuing GRO through liquidity mining pools and airdrops . They can be claimed in the Rewards Centre.
When you claim GRO from Pools, Airdrops or the Vesting Bonus, they are added to your personal GRO vesting position instead of getting sent to your wallet. You can choose to vest 100% of GRO tokens over 12 months, or get 30% sent to your wallet immediately while forfeiting the remaining 70%.
If you choose to vest over 12 months
- The first GRO reward you claim starts your personal vesting schedule which lasts for 12 months (the vesting period). Your vesting schedule runs linearly from 0% of your GRO unlocked to 100% one year after the end of your vesting start date. Leave early and get fewer GRO, leave later and get rewarded for your diamond hands.
- Your vesting schedule is for your whole wallet, not per claim. Additional claims, if you choose to make them, will increase your vesting GRO and adjust your vesting period to end at a later date.
- You can exit your vesting and move GRO into your wallet whenever you want, but if you exit early you will lose anything that has not unlocked yet.
- Example: if you left on day 1, you would keep 0% of your vesting GRO; if you left after 6 months, you would get 50%; and if you stay for the full year, you would keep 100%.
- Here’s the twist: any GRO you give up will be added to the global Vesting Bonus Pool. So those who stay with the protocol can claim the locked GRO of those who leave! Anything that is given up goes back to the remaining more dedicated DAO members.
- At any point in time, you may claim your share of the global Vesting Bonus Pool. Your share is calculated as Your locked GRO / all locked GRO. This means there’s an incentive to increase your locked GRO as you can claim a larger share of the Vesting Bonus.
- It doesn’t happen automatically though — you have to click to claim the vesting bonus. After you have claimed a Vesting Bonus you may not do it again until 4 weeks later.
- Whenever you claim any kind of GRO reward, your Vesting start date is adjusted based on the weighted average of GRO tokens you just claimed and what’s still vesting. Your vesting end date continues to be 365 days after your Vesting start date.
- Because it’s a weighted average, the bigger the new claim is in relation to your old GRO, the greater the increase in your start date (and the greater the extension to your full vest time). Conversely, if you just make a small additional claim your start date won’t increase as much. This is to prevent sybil attacks with multiple wallets or gaming the system.
- Both the cool down period after a Vesting Bonus claim, and the max length of the vesting period are DAO controlled parameters. They allow the DAO to find the right balance between sufficiently large bonus claims for gas efficiency and frequency of engagement. The DAO can use these mechanics to put DAO control into the hands of those with a high level of engagement and long-term view without penalising smaller wallets.
- Removing assets from Vault, PWRD or Pools will not affect your GRO earned so far and will not affect your vesting schedule either.
How does Vesting Bonus work?
Imagine a Gro village, and in the middle of it is a shining bowl full of GRO tokens…. 🏆
You already have your own GRO tokens safely tucked away in your vesting contract back home. The vesting contract sits in the corner of your house, gradually unlocking more tokens each day. So some are locked, some are unlocked. But that’s not enough for you. You want more! So you get a suitcase… 💼
The size of your suitcase is based on how many locked GRO you have back home already. The more locked GRO you already have in the vesting contract, the bigger your suitcase.
Every now and then some people in the village get bored of village life and decide to leave. They are seeking the bright lights of the city again. But the rules of the village state that when they leave, they can only take the unlocked GRO from their vesting contract back home. The locked GRO they have to put into the community GRO bowl on their way out.
Now why does this matter to you…? Because every four weeks, anyone in the Gro village can take their suitcase to the GRO bowl and fill it with more tokens! These are the tokens given up by the paperhands that left the village.
This means there are constantly tokens going into the bowl (from locked GRO given up) and tokens going out (from others filling their suitcases with more GRO from the bowl).
If you leave it longer — there might be a whale who leaves the village and the bowl fills right up! But if you leave it too long — the rest of the village will go down every four weeks and gradually empty the bowl with their own suitcases 😢
How do you play it? You decide….
Show me the maths
As a user vests GRO tokens more than once, the vesting start date would be adjusted. The calculation is a weighted average between the existing start date and the new claim date. This can be a bit complex, so we’ve set out the equation below as well to help.
Vesting start date calculation:
Here’s an example of how this might work in practice.
In this example someone claims 1000 GRO at the start on 1st October 2021. The vesting started with an end date on 1st October 2022.
After 6 months the GRO tokens are roughly 50% unlocked. They could exit at 6 months with 498.6 GRO, but in this example they choose to claim another 100 GRO instead.
- This adjusts the vesting start date to be the weighted average of 1st October 2021 (with 1000 GRO tokens) and 1st April 2022 (with 100 tokens). The adjusted start date is thus 1st October 2021 * (1000/1100) + 1st April 2022 * (100/1100) = 17th October 2021.
- The vesting end date is 365 days after the start date to be 17th October 2022.
- Unlocked GRO is calculated based on the current date (say 1st April 2022). To be exact, it would be 1st April 2022 minus the adjusted vesting start date (17th October 2021), then divided by 365 days, and multiplied by the 1,100 total GRO vesting.
After 9 months, the user receives another 100 GRO from an airdrop. Instead of adding that to the vesting contract, the user decided to get 30% in their wallet directly while giving up 70%.
- This means the user would now have 30% of 100 GRO from the airdrop in their wallet.
- As this does not change the vesting contract, there is no change in vesting start date. Accordingly there would not be a change in vesting end date (which is always 365 days after the vesting start date).
- Since another 3 months has gone by, the unlocked GRO has increased from 498.6 GRO to 772.9 GRO. This is calculated by using the current date of 1st July 2022 minus vesting start date of 17th October 2021, then divided by 365 days and multiplied by the 1,100 total GRO vesting.
Frequently Asked Questions
Are all GRO rewards subject to a 12 month vesting?
- Yes. Everything you claim (whether from liquidity mining, airdrops or Vesting Bonus rewards) will all add into your personal vesting position unless you choose to opt out of vesting and only receiving 30% in your wallet immediately instead.
- You can exit at any time to take your unlocked share, but you lose anything locked at that time.
- Your vesting calendar will never have longer than 12 months left to go (i.e. it’s capped at 12 months from your latest claim date). So if you claim all your rewards today and then do nothing for 12 months you would be able to exit for the full amount you claimed.
- Any additional claim will extend the time remaining on your vesting calendar: e.g. if you made a small claim today and in 9 months made another claim, your overall calendar would take more than 12 months to be fully unlocked (from the date you first claimed).
How do extensions to my vesting calendar work?
- While your calendar is vesting, you can continue to claim additional GRO rewards. Each claim extends the time remaining in your vesting calendar by updating your vesting start date as the GRO weighted average of all your claims dates and then running for 12 months from the new start date.
- The new vesting start date is based on the weighted average between your existing start date and your new start date. The vesting calendar then runs for 12 months from the new vesting start date. See the worked example above for a clear illustration.
- This mechanic is important as the vesting system would be easy to game otherwise: you could start off multiple wallets with tiny amounts vesting, and then in future use them as a path to get huge amounts of GRO claims instantly unlocked.
- It also means your opportunity to claim rewards from the Vesting Bonus is both bigger (as you build up your vesting position) and lasts for longer. See more on this below.
- The total vesting period is only more than 12 months if you choose to make further claims during that time. You always have the option to stop making further claims and just wait for your claimed rewards to fully vest.
Can I exit immediately?
- Yes, you can choose to claim without vesting. But you will give up 70% of the rewards and only get 30% of that in your wallet.
- Once you choose to vest, all rewards vest over 1 year. Your GRO tokens continue to vest linearly from 0% to 100% as time goes on. You’d also get the chance to claim given up GRO from others who decided to exit (Vesting Bonus rewards) but there would be adjustments to your vesting start date when you make additional claims.
What happens to the given up rewards — do they get burned?
- No. Forfeited GRO are put into the Vesting Bonus contract where you can claim from them once every four weeks if you choose to do so, but it’s not mandatory.
- The share of GRO that you can claim from the vesting bonus pool is the same as your share of unvested GRO out of all unvested GRO (from all users combined). You will be able to see from the Rewards Centre what amount of GRO you’re eligible to claim at any time.
- Note: this amount will change depending on the behaviour of other users, so it can go up or down. If you don’t claim, the Vesting Bonus Pool doesn’t necessarily keep increasing — so you will get more rewards if you claim regularly (vs waiting for rewards to accrue).
- Once you click claim on the Vesting Bonus, you can’t click it again for another four weeks. This time window used to be two weeks only, but the dAO voted to increase the cooldown period in November 2021, so that it doesn’t disadvantage people with smaller positions that may find gas fees being prohibitive to claiming from the Vesting Bonus Pool regularly.
Can I stake my GRO rewards while they are vesting?
- No, you can’t stake GRO rewards while they are vesting, but you can gain more GRO by claiming from the Vesting Bonus Pool every four weeks.
- Although it isn’t possible to calculate the return as there are many variables (including how often you claim, the behaviour of other users and gas fees), this will provide a way to keep increasing your vesting GRO position without staking.
Does this mean the liquidity I provide to GRO is locked?
- No. You can withdraw your initial stablecoins (Gro Vault or PWRD) whenever you choose within that time period without suffering a penalty (other than the 0.5% withdraw fee that goes into APY for all users).
- If you start staking or using pools, you can unstake your staked assets at any time with no protocol fee.
- The airdrop and liquidity mining GRO rewards would be available to claim in the Rewards Centre, where you’d have the option to add them to the 12-month vesting position or withdraw 30% immediately while forfeiting the rest.
When does my vesting contract begin?
- Your vesting contract begins when you claim the rewards. You can then choose to withdraw the vested portion anytime.
- For example, you could withdraw 25% on 3 months and give up the remaining 75%, or you could decide to wait until all 100% is vested after 12 months before withdrawing.
Can I transfer vesting positions between wallets?
- No, it’s not possible to transfer your vesting position.
What is the rationale behind this vesting mechanism?
- The basic principles of the design is to reward long-term committed DAO members who are also engaged.
- If you’re long-term and continue to stay engaged, then the protocol will reward you with an increased stake in its governance.
Will I need to pay the gas fees every 4 weeks for claiming the given up rewards?
- Yes, each claim you make will need to be executed by the user.
- If it turns out that we have a lot of diamond hands so the average claim every two weeks is very small , then the DAO can adjust the cooldown period further, so that it doesn’t disadvantage people with smaller positions.
The tokens we collect every 4 weeks from given up rewards — where do they get added to, once we do our monthly claim from the Vesting Bonus contract?
- They get added to your existing vesting position, where your vesting start and end date are adjusted (see the worked example above).
- At any time, a wallet address would only have 1 vesting contract live.
Will the team be eligible to claim from weak hands during the first year? Are their locked tokens completely out of the equation for now?
- Team, advisor and seed investors’ tokens are all subject to a 3 year vesting period with 1 year lockup.
- During the 1 year lockup these tokens cannot be accessed meaning they cannot (a) claim Vesting Bonus or (b) stake the tokens.
- Any tokens bought in personal capacity go through the same route as everyone else.
What’s the GRO contract address?
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