XBorg Improvement Proposal #15: XBG Reward Program

This proposal presents the $XBG Reward Program, an initiative to reward active XBG holders and liquidity providers. The program incentivises long-term holding and ecosystem participation, for which participants will be rewarded with additional XBG tokens, partner token airdrops and ecosystem perks.

If approved, the program will start 3 to 7 days before the token launch. If rejected, a community townhall will be organised to form an updated proposal considering the community’s concerns and suggestions.

Overview

Participants can pledge their tokens to the program and get a share of the prize pool based on the number of tokens they have pledged, their ecosystem contribution, and their NFT holdings. Additional criteria will be added in the future to incentivise active engagement within the XBorg ecosystem.

Over the next 24 months, we will allocate a maximum of 5% of the token supply from the community rewards pool:

- 3% of the supply will be used to reward participants pledging XBG tokens,
- 2% of the supply will be used to reward participants pledging XBG/USDC LP tokens.

The XBG Reward Program will be available on the same website which hosts the XBG token claim, xbg.xborg.com.

XBG Pledge Program

The XBG Pledge Program will be structured in consecutive seasons of 30 days each.

1. Participants can pledge any amount of $XBG tokens held in their wallet once the season starts.
2. Every day, participants will accumulate points based on the number of tokens pledged, taking into account the Reward Multiplier (explained below). Pledging tokens differs from staking as tokens stay in participants’ wallets. Selling or transferring tokens during a pledging period will forfeit the rewards of that period.
3. Once the season ends, each participant's total amount of points defines their share of the XBG reward pool.

Reward Pool

A maximum of 3% of the token supply will be allocated to reward active holders pledging their XBG tokens.

Over 24 months, an average of 1,250,000 XBG tokens will be distributed monthly. In practice, the prize pool will be adjusted monthly based on the participation rate of the previous season to guarantee the program’s attractiveness and the protocol’s sustainability.

Seasons

We are introducing a seasonal system to simplify reward distribution. It also enables us to implement gamification features, such as a streak bonus for those who participate in multiple seasons consecutively. The length of a season (initially 30 days) is subject to change based on the feedback we receive from participants.

• The Pre-Launch Season will start 3 to 7 days before the token launch, with a 2,000,000 XBG reward pool, and ends on August 21st.
• Season 1 will start around August 22nd with a 1,000,000 XBG reward pool lasting 30 days.
• Season 2 onwards will follow the previous ones.

The Pre-Launch Season rewards are more attractive to reward early joiners and long-term holders. XBG holders pledging their tokens during the Pre-Launch Season will share a 2,000,000 XBG prize pool and get a head start on the season streak multiplier.

Multiplier

Participants can increase the number of points earned daily to increase their share of each season’s prize pool in multiple ways. As we want to reward community members who add value to the XBorg ecosystem, additional multipliers will be added to incentivise active contributors.

The initial multipliers (which are cumulative) include the following:

• Governance Voter (defined as a holder that voted on at least one governance proposal): x1.1 (10% boost)
• Prometheus NFT Holder: x1.2 (20% boost per NFT)
• Chestplate NFT Holder: x1.025 (2.5% boost per NFT)
• Seasons Streaks (for participants pledging tokens for consecutive seasons): x1.05 to x2 (max cap) (5–100% boost)

For example, with a reward pool of 1000 XBG tokens, two participants each pledge tokens for the same amount of time. Participant A has a 1.325 multiplier, while Participant B has no multiplier.

• Participant A will receive 569.9 XBG (57% of the pool)
• Participant B will receive 430.1 XBG (43% of the pool)

Liquidity Provision

As mentioned, an additional 2% of the token supply will be allocated to liquidity providers over the next 24 months. In the future, we will prioritise reallocating revenue generated by the protocol to maintain the attractiveness and sustainability of the incentives. Other forms of rewards will be distributed punctually to the most active participants (USDC, partner tokens, NFTs, etc.).

These rewards aim to incentivise liquidity provision on both Arbitrum and Ethereum. The 2% of the token supply will be distributed linearly to providers that pledge XBG/USDC LP tokens on the website, and rewards will be streamed on the Arbitrum network at the end of each season (30 days long).

Like the XBG Pledge Program, key parameters will be reviewed regularly, and any drastic change will be subject to a governance proposal. Note that specific jurisdictions, although able to provide liquidity, may be prohibited from receiving rewards, as the website will be geo-fenced.