Proposal: Algem ASTR Allocation From Astar Treasury For Liquid Staking Launching

Proposal: Algem ASTR Allocation From Astar Treasury For Liquid Staking Launching

TL;DR

Algem is submitting this proposal to the Astar Council requesting ASTR tokens from the Astar treasury as an incentive for our launch strategy. This allocation will be used as a bonus to reward Algem’s liquid staking participants for one month following the launch. Allocation size depends on Algem’s TVL on 31th August 0 AM UTC.

Support The Project That Will Really Boost TVL Growth

Algem will soon launch Liquid Staking on Astar Network. Doing so will offer ASTR token holders new opportunities and stimulate Astar Network’s economy.

Algem is collaborating with the other Astar Network protocols and, in the process, is creating synergies and numerous use cases for our liquid nASTR tokens.

Our partnerships will allow all the projects and the Astar Network to benefit economically from our liquid staking solution.

As a result, your support will benefit Algem, Astar Network, and Astar projects.

How?

Simply put, we will encourage Astar dApp stakers to switch to Liquid Staking, which will consequently help grow Astar’s TVL and other projects’ TVL.

The Mechanics

We have tied the grant size with Algem TVL calculated on 31st August 0 am UTC. So depending on the final TVL size, our users will get a different bonus allocation.

For example: if the TVL of Algem is 600M ASTR at 0 am UTC on 31st August, the total bonus amount is 1.8M ASTR (600M*0.003). Every address will get 0.003 ASTR * AmountStake at the snapshot timing.

This mechanic will motivate users to stake more and encourage others to stake to increase the bonus per one ASTR.

We have prepared a table with scenarios of possible rewards depending on our TVL:

Staking rewards will continue to be distributed to users according to the standard liquid staking parameters.

Grant Distribution

The bonus token will be distributed after the campaign (roughly from 15th Sep) with 30 days liner vesting.

Conclusion

This incentive program aims to boost Algem’s liquid staking APR by offering an extra level of rewards on top of the standard staking reward.

Thank you for considering our proposal.

Algem Links

Website | Twitter | Discord | Telegram | Medium

9 Likes

To be fair, I think the mechanics have to be changed. The grant size should not be calculated based on only one day TVL on 31st August.

It has to be calculated based on the daily average throughout the campaign period.

  1. Snapshot of tvl and stakers’ addresses and amount staked to be taken everyday.

  2. Grant is calculated based on average tvl.

  3. Rewards are distributed to stakers based on their average stake throughout the campaign period.

1 Like

I think we shouldn’t use the amount based on Daily Average, and the current plan looks good.

I see they are aiming for gamification or giving some incentive for their stakers to support Algem to increase their reward.

Early users can be rewarded by managing nASTR on Astar Defi, and they support Algem (like Twitter engagement) so that Algem can have a larger TVL.
Having late users at the last phases seems fine, because there is unbonding period, and when those users try unbond immediately, I guess they lost more than they get from the campaign. ( @Gunit Please make sure it)

One thing that can be improved here

Allocation size depends on Algem’s TVL on 31th August 0 AM UTC.

Because the amount of dAppStaking rewards is calculated every era, not UTC-based, you shouldn’t use time-based snapshot. You should take a snapshot at Era xxx. You can get xxx when you calculate it.

2 Likes

looks like you have already got around 100M ASTR.

I propose to change the table a bit.
The first target should be 200M ASTR.

1 Like

Hi @shnshkw, Based on my knowledge about Algem, I confirm there are penality fees (1%) when the user wants to unstake immediatealy. Moreover there is a unstaking pool and the user cannot immediatelly unstake when this pool is empty.

I agree with @shnshkw about using only one snapshot rather than the daily average. The goal of this mechanic is ensured long support of Algem and partner dApps using gamification and one snapshot fits well for this.

We can determine exact ERA for the snapshot and set 200M as the first target.

3 Likes

Good plan guys… all the best

great!

It is still a big target, but I hope this campaign brings momentum(Astar Hot Summer).

Forum members with Trust Level 2 and above can vote.

Approve proposal to use Astar Treasury
  • Yes
  • No

0 voters

Replying late here, I would also have prefered to have a time weighted based system to avoid a pump & dump situation but the unbounding mitigates the risk of early exit so still voting yes, I want to support Algem which is one of the 1st original project built from scratch on Astar.

5 Likes

I’d vote but apparently i can not.

Good morning everyone

Thank you to all those who voted for our proposal both positively and negatively.

We have published a new article on our blog announcing the campaign, you can find the different parameters to be eligible and our strategy to avoid pump & dump. :link::point_down:

The goal is to motivate ASTR holders to stake their tokens in order to increase the TVL on Algem and therefore get a higher APR on their staking in a fun way.

To avoid pump & dump, we will take different snapshots before and after the end of the campaign to eliminate those who wanted to cheat by staking their tokens before the end and unstaking them right after the end.

The parameters are as follows:

Official Start date: August 8th, 2022
End date: September 10th, 2022
Earning Potential: Depends on TVL on September 10th, 2022

Thank you for helping us promote this campaign and boosting Astar Network activity during the month of August. :link::point_down:

Regards

Algem Team

1 Like