SingularityNET Loyalty Rewards — Governance Event

Peter Elfrink
SingularityNET
Published in
7 min readJan 17, 2023

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Update January 27th: During yesterday's public meeting, it was discussed and decided to leave the submission period for proposals open an additional week, as the schedule allows for this. The voting dates will not change; proposals can be submitted until February 6th. The two weeks of proposal fine-tuning and discussion will now take place from February 6th until February 19th. An additional open meeting will take place on February 2nd at 15UTC.

Greetings Singularitarians,

Today we are initiating the Governance Event for the community to decide how the Loyalty Rewards Pool tokens of the Phase Two plan will be allocated, for tokens minted during year 2 and onward. To best achieve the goals of Phase Two, the community as a whole will design, discuss, and vote on how the program tokens will be distributed.

This blog post is your guide to participating in this Governance Event — timeline, process, and outcomes. SingularityNET is continuing to push for greater decentralization of the organization, and community participation in making decisions like this is an important part of that process. This event will determine how to allocate the Loyalty Rewards token pool as it is minted in the future through a democratic vote of all token holders.

As a Refresher: In the SingularityNET Phase Two proposal, 5% of tokens minted each month were allocated to creating a special “Loyalty Rewards Pool” to be used as follows:

“During the first year of Phase Two, this 5% of the monthly tranches will be allotted to Phase One AGI (ERC-20) token holders as a reward for loyalty and to incentivize participation in the Phase II network. The specifics of this distribution are currently being worked out with legal counsel as there are subtleties regarding “airdrops” and similar mechanisms in various jurisdictions. The utilization of the Loyalty Reward token pool after the first year may be changed via democratic vote of token-holders.” -excerpt taken from the SingularityNET Phase Two Proposal, page 20.

The allocations for Year 1 tokens are currently open for claiming on the Loyalty portal, by those who were part of the hardfork snapshot taken in May 2021. Read this blog post for the details on how the first year of allocations has been designed.

Below is the schedule for the Community Governance Event on future allocations.

Today the ideation portal opens for proposals on what to change and what to maintain, going forward. We will use the same ideation portal, Swae.io, as the Deep Funding project uses for funding proposals. This community Governance Event will take a similar approach to the 2022 Deep Funding Governance experiment, following its success. This event expands opportunities for the community to voice its opinion and integrate more deeply into the governance and decisions of SingularityNET organization.

Governance Event Timeline & Process

Ideation Portal Opening — January 16th to January 30th
The portal will be open for two weeks, during which time the community can submit ideas. For those who are unfamiliar, the ideation portal on Swae.io contains space for proposal questions, comments, discussion, and rating; participate in ongoing discussions by visiting the portal frequently over the coming weeks.

1st Open Townhall/Meeting for Proposal Discussion — January 26th
On January 26th, there will be an open townhall/meeting where the proposals submitted so far will be discussed; this leaves four days in the ideation period for additional proposals to be submitted until January 30th for any ideas which emerge during the meeting.

Proposal Fine Tuning — January 30th
After January 30th, no new proposals will be accepted, and the process will move to the next phase — focused on fine-tuning proposals that have already been submitted.

2nd Open Townhall/Meeting for Proposal Discussion — February 9th
On February 9th, we’ll have another public meeting for discussion. If the need for more meetings surfaces, we will have the time to do so.

Voting Period — February 20th to February 26th
The best proposals will be put on the voting portal, which will be open from February 20th until February 26th. A special blog detailing the voting mechanics will be shared prior to the end of the ideation phase.

Governance Event Results Announcement
Shortly after voting closes on February 26th, the results will be announced.

What is the question during this governance round?

Basically, all parameters in the current Loyalty Rewards Program design can potentially be changed in this governance event. One exception would be the token amount of 5% of the Phase Two tokens, as this is set in stone by the minting contract. Optimal proposals will promote all of the goals of the Loyalty Rewards program:

  • Incentivize participation in the Phase Two network (i.e. maximize SingularityNET AGIX holders participating on the Cardano blockchain)
  • Strengthen the AGIX utility token — increase Total Value Locked and liquidity for Platform users
  • Grow the SingularityNET community through ongoing incentives to loyal AGIX holders

These tokens were distributed as a gesture of appreciation from SingularityNET to Phase One AGI token holders for their support of the Phase Two effort, as well as a way to incentivize and reward community growth via new token holders on the Cardano blockchain.

Some samples of program parameters that could be changed:

  • Eligibility: current eligitility is based on the Phase Two hardfork snapshot (May 2021); alternative eligibility criteria can be proposed
  • Minimum token balance eligibility: minimum tokens required to receive rewards may be adjusted
  • Token Distribution: currently, tokens are allocated linearly based on token balances at the snapshot, with an addition for stakers; an alternative distribution formula can be suggested — such as altering rewards to stakers or adding rewards for liquidity pool providers, etc.
  • Ongoing Program Governance: this initial Governance Event is being held per the Phase Two proposal specification that tokenholders have the right to adjust the mechanics for Loyalty Rewards Year 2 and forward; however, if the community is satisfied with the current distribution no change at all need to be made at this time — this could be a proposal too. Or, perhaps a proposal for regular governance events, to be held at certain intervals.
  • Claiming Period: eligible participants currently have 3 years to claim their loyalty reward tokens from year 1; this period could be lengthened or shortened.

All proposals will have to be evaluated for technical feasibility — for instance, it is not possible at this time to provide rewards to token holders on centralized exchanges. And technical limitations that arise during ideation and fine-tuning will be discussed with the community in full.

How to participate

  • Familiarize yourself with the current loyalty rewards mechanics lined out in the original Loyalty Reward blog post.
  • Visit our ideation portal on Swae and create an account. You can sign up with a Metamask wallet or through email.
  • Locate the mission “Loyalty rewards — Community Governance”. The above link directly brings you there.
  • Check if someone already made a proposal that is close to what you want to propose and join its discussion.
  • Create a proposal yourself by clicking “Create new proposal”, if no similar questions/ideas are already under discussion.
  • Continue to review proposals and discussion during the Governance Event, to participate in ideation, discussion, and refinement. The Discord Server and Telegram group will also provide space for community discussion.

What does a good proposal look like?

The below section is adopted from the Deep Funding Governance Experiment as it proved a solid framework for getting high-quality proposals.

An example proposal has been included on Swae.

  • A good proposal consists of a question to the community with a number of optional answers, explains how this proposed idea differentiates from the existing process, and outlines the benefits of the proposed change.
  • Every community member can create one or more governance proposals. We expect that Community members will first check if a similar proposal has already been added by someone else before submitting a new one. It will be more effective to first have a discussion on the details of the first proposal than to add new variations immediately.
  • Every community member can give feedback on any of the proposed questions and answers.
  • The creator of the governance proposal can give feedback in turn and make adjustments and improvements or explain why this is not warranted.
  • Every community member can give a rating to each governance proposal.

Based on the engagement on a governance proposal, the rating given, and how it differentiates from other governance proposals, we will filter out a number of questions to be offered to the community for a formal vote. Important factors will be:

  • practical feasibility,
  • amount of engagement,
  • positive reactions,
  • rating,
  • uniqueness related to other governance proposals at the time of creation,
  • expected benefits of the proposal.

We’ll discuss this during the open meetings and potentially might host a dedicated meeting on this topic.

Concluding Remarks

Further updates will be provided via social media and this blog during the Governance Event. We are deeply grateful to have a vibrant and passionate community whose ongoing support inspires us on a daily basis to realize our vision of a global decentralized AI network. The loyalty rewards pool is an important part of the Phase Two token allocations because it allows us to thank our most loyal and committed community members on an ongoing basis. We hope to see you participate in the ideation, discussion, meetings, and voting — and we look forward to our collaborative participation in this critical governance!

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