Treasury Proposal for ACS Campaign

[muraoka]

I strongly agree with the 2nd and 3rd points proposed by MouthMouth68.

2. Allocation for LFGM Campaign Participants
   Acknowledging the contributions of LFGM campaign participants by rewarding them with ACS allocations is a vital step in enhancing the significance of participating in the ecosystem. Recognizing past contributions will positively impact future engagement and participation.

3. Treatment of ETH, BTC, and USDC
   The proposal to limit incentives for ETH, BTC, and USDC during this campaign to focus on promoting ASTR’s utility is highly logical. Concentrating on ASTR adoption first, and then gradually extending support to other assets, aligns well with the campaign’s overall goals and ensures its effectiveness.

I believe these proposals will further strengthen the ASTR and Soneium ecosystems, and I look forward to seeing the positive outcomes they bring!

[jay]

Thank you for your support ser!

[jay]

Yes. Let’s grow together with Soneium!

[jay]

Thank you for your opinion. I believe that to adopt ASTR to another ecosystem stably, we should be bold.

[jay]

Agree that time matters a lot. The Optimism foundation has allocated 1m OP to support interoperable ETH between at least two chains and support 100+ ERC7802 deployments. link
I believe that by widely adopting ASTR into Soneium, we’ll have a better chance of adopting ASTR into other Superchains, staying aligned with OP.

Thank you for your support!

[jay]

Thank you for your opinion!

[jay]

Got your point.
Unlike Astar zkEVM, there will be around 40 dApps using ASTR on Soneium, with more to come.
With a new initiative like ACS, more dApps on Soneium are expected to adopt ASTR, fostering ASTR’s growth within the Soneium ecosystem.

[jay]

Thank you for your support and participating in the ACS campaign!

[SeiyaChida]

Thank you for bringing up this important discussion. As the founder of Neemo Finance and the provider of nsASTR, we believe this proposal aligns well with the ongoing efforts to incentivize and grow Astar’s token utilities and ecosystem to Soneium.

Through nsASTR, we have been focused on optimizing rewards for users by leveraging dApp Staking V3 and creating new opportunities for ASTR holders. Campaigns like ACS play a critical role in attracting more liquidity and engagement, which ultimately benefits the ecosystem as a whole. We fully support initiatives that expand utility and visibility for ASTR-based assets, and we’re committed to collaborating with other projects to ensure the success of ACS and similar campaigns.

One suggestion we would like to make is to include nrETH as an eligible asset for this proposal. As part of our collaboration with Ether.fi, we successfully launched nrETH (x.com), which was specifically designed as a bridge from Ethereum mainnet to Soneium, aiming to drive TVL growth on Soneium. Ether.fi has already provided multiplier benefits for Ether.fi loyalty points, and we’re working closely on further development and marketing efforts to attract liquidity to Soneium.

Also we are developing for upcoming features in Feb

1. Strategy Utilization
   User deposits will soon be integrated with Ether.fi’s liquid vault, allowing users to earn higher rewards while maintaining exposure to Soneium through nrETH.

2. Standard Withdrawal:
   A streamlined withdrawal process will enable users to burn nrETH on Soneium and claim ETH after the unbonding period. Withdrawal requests will be batched on Soneium, processed on Ethereum mainnet, and finalized back on Soneium.

3. L2 to L1 Staking:
   User deposits on Soneium will also be bridged to Ethereum mainnet and staked with Ether.fi, aligning deposits to Ether.fi’s vault. This will allow vault deposits to enhance APY for users.

Additionally, we are advancing the integration of PT/YT and exploring ways to enhance Soneium DeFi utilities further, using Ether.fi’s vault as seen with Berachain.

Including nrETH as an eligible asset will not only strengthen the ACS campaign but also create synergies with ongoing efforts to grow Soneium. Thank you for considering this proposal, and we are open to further discussions to ensure its success!

[cyphernk]

Hi everyone, this is NK from Startale.

First of all, thank you for sharing a great proposal to the community Jay. Great to see our community council is actively proposing ideas for growth of Astar ecosystem. I fully support this idea. I see below three benefits of running ACS starting from February 20th on Soneium.

1. Distribution of ASTR token
Given ASTR is already listed in most of global centralized exchanges including Binance, it is difficult for us to find effective ways to broaden the holder base of ASTR token utilizing centralized exchanges.

Therefore, we need to find ways to convince more onchain users to hold ASTR. Already ASTR is one of the most widely adopted asset within Polkadot ecosystem, but Ethereum ecosystem reveals massive opportunities for holder base expansion.

By hosting an ecosystem wide campaign together with projects included in the list (believe which will get longer as we continue our discussion), Astar community would be able to distribute ASTR to great number of new active users who are already familiar with cryptocurrency and Web3 in Ethereum ecosystem.

We are here to drive Web3 adoption for billions of people, and significant expansion in the number of holders for ASTR is extremely crucial for our success of the mission.

2. Utility expansion of ASTR token
Despite continued efforts of Astar community and core contributors, we are not seeing significant utility expansion of ASTR token. This is due to limited number of onchain users within Astar Network.

Core team has proposed Astar Evolution Phase 1.0 and Phase 1.5 to overcome current limitations of limited utility. These efforts are taking place both in Astar Network and Soneium. Soneium ecosystem has been growing massively with huge number of ecosystem projects, and it opens up massive opportunity for ASTR to expand its utility.

For ASTR to be widely adopted by borader set of ecosystem projects in Soneium which will be driving adoption of Web3 together with Sony and Startale, interest alignment is key. Astar has massive advantage over any other blockchain protocols to tap into Soneium eocsystem for interest alignment, due to special situation of core contributor’s position in both ecosystems. It is an opportunity for Astar ecosystem to leverage such special situation to expand ASTR’s utility massively at once.

The higher the utility, the more reason for people to obtain and hold ASTR.

3. Alignment with Soneium, one of the most anticipated blockchain ecosystems launching this year

Soneium mainnet launched three days ago and daily transaction is exceeding 150K already. This is higher daily transaction count that majority of layer 2 blockchains on Ethereum. Also, Soneium has acquired 75K+ unique wallet addresses in 3 days since launch and the number of active wallets onchain is exponentially increasing.

Core team already proposed ASTR to become ecosystem token of Soneium in past proposals. ACS Campaign is the right opportunity for us to capture the momentum at launch phase of Soneium, effectively positioning ASTR as representative asset in one of the fastest growing blockchain ecosystems.

==
While the amount of reward could sound bold for certain community members, I believe having significant impact to broader Web3 community is more important than the amount itself. As utility of ASTR onchain is expected to grow exponentially during the campaign phase, sell pressure post the reward distribution would be mitigated with multiple onchain utility and benefits that Soneium ecosystem can provide for Astar.

For exponential growth, significant investment is necessary. I believe influence of Sonieum has been already showcased by its massively successful testnet operations, wide ecosystem from day 1 of the mainnet. Vitalik’s recent post on Soneium has proven the impact of Sony joining Web3 industry. All eyes are on Soneium, but there is no asset where those eyes can look into. ACS will ensure ASTR to obtain that position.

For the reasons and arguments above, I strongly support this proposal.

[Mouthmouth68]

Hi @cyphernk

Thanks for you explanantion. I completly agree with most of your comments.

Startale beeing close to Sony, maybe you will be able to answer my question.

@jay mention in this proposal to use 100M Astr comming from Astar Treasury.
As I’ve mentionned this amount is a massif 6M$ and represent a big chunk of Astar treasury (20%).
While I understand your argument of being bold, making noise, betting big to earn big etc…,
I’m wondering why, the entire cost should be assumed by Astar Treasury.

we have to keep in mind that MOST airdrop farmers (the big majority of users attracted by this kind of events) dump most, if not all, of their rewards right after reception to secure $value of their work. Spending 100M ASTR in one go therefore imply taking the risk of a massive dump after the campaign which would impact negatively every long term ASTR holders.
We also have to keep in mind that, despit this huge expense, ASTR addoption targeted could not be reached after this very short campaign.

In this scenario, only winner of this huge expense from Astar treasury would be Sony & Soneium ecosystem (with visibility and potential massive influx of users, TVL and TX attracted brought by the campaign rewards) and not Astar & ASTR holder.

With that said, wouldn’t it be more reasonable to request Sony to financialy contribut to this campaign (i would ask for a 50/50 participation), in order to share risk&rewards, if we absolutly want to spend 6M$ on a 70 days promotion campaign?

If they don’t want, i strongly beleive that fractionning the budget on 2 or 3 campaigns is the thing to do for healthy treasury managment

[cyphernk]

Thank you for the message.

While we cannot disclose specifics, Soneium is planning for incentive campaigns in future where ASTR and ASTR adopting dapps will be prioritized.

I strongly believe capturing major attention at once is important. In L2 ecosystems, proposed amount of incentives is not considered as “huge incentives”. This is right size if ASTR & Astar want to capture attention from Ethereum community.

[Marroz]

ambitious campaign, not without difficulties… we must first of all start from the assumption that the success of astar passes through that of soneium… only in this way will we be able to be in favor of the campaign without objections… I consider the funds made available to be positive, don’t time for half measures, we need to attack a market that in the meantime is grinding percentages… but let’s clarify one thing, the assumption stated at the beginning must. be printed in everyone’s minds in large letters, astar does not need another over dappstaking initiative that will further slow down its development to make a dairy cow… the incentives must be explained, an airdrop is not enough to broaden the echo , it’s time for everyone, l1 and l2, to officially declare what astar is. . there must not and cannot be any more misunderstandings, the title of the proposal must be the key objective of the campaign and must be shared by every actor who is part of it, in particular by Soneium. if this assumption is not respected, alas, it will be further ballast, and it is the last thing the entire community deserves.

[Maarten]

Going to jump in to this thread now it’s more formed and lively with multiple actors interacting in an organized way.

Lets keep in mind to follow our, rules of engagement. Sharing the link for new people joining this discussion with a newly registered account: Astar Collective - Rules of Engagement

@muraoka

Allocation for LFGM Campaign Participants
Acknowledging the contributions of LFGM campaign participants by rewarding them with ACS allocations is a vital step in enhancing the significance of participating in the ecosystem. Recognizing past contributions will positively impact future engagement and participation.

Taking this question first.
Thanks a lot for the proposal and I do agree on recognizing past contributions is key. Thats why as you see in the proposal 25m ACS (2.5%) is going to Astar Surge participants.

LFGM was a testnet campaign with not real assets or value. During the LFGM campaign we made clear that it’s a testnet campaign with real prizes and it’s not an incentivized campaign with tokens. Creating an LFGM allocation from my point of view would not be fair compared with the Surge that had real value and used the real ASTR asset.

I wouldn’t say that maybe projects who joined the LFGM campaign are thinking about using that data further in their future campaign, point system or future airdrop. Astar Foundation already used its own treasury to buy and distributed those real world prizes as incentive.

[Maarten]

@muraoka

The proposal to limit incentives for ETH, BTC, and USDC during this campaign to focus on promoting ASTR’s utility is highly logical. Concentrating on ASTR adoption first, …

This is good feedback, having a bigger multiplier for ASTR would benefit further expansion in the ecosystem.

Regarding the expansion of ASTR first, I do feel we did a great job with the Surge and already seeing ASTR as one of the most available asset in Soneium ecosystem. This has been a mission since the testnet launch of Soneium. The adaption is already started to strenghten the impact of this proposal imo. Some examples of how ASTR is already being adapted on Soneium:

KYO Finance

Velodrome

QuickSwap

SoneX

WaveX

Neemo

Yay!

Untitled Bank

Sake Finance

[Maarten]

@Mouthmouth68

In this scenario, only winner of this huge expense from Astar treasury would be Sony & Soneium ecosystem (with visibility and potential massive influx of users, TVL and TX attracted brought by the campaign rewards) and not Astar & ASTR holder.

Valid points and to be very transparent, it has been discussed to see if there is an opportunity with the impact of this campaign related to sequencer profit but stil in a early phase.

The main mission that we have from Astar Foundation is to get ASTR being recognized as THE asset on Soneium. If Soneium becomes a top 5 Layer 2, holding ASTR can unlock massive potential. You can see this as well on Base where Aerodrome is bringing a lot of value to Base. The benefit might not been seen with this post but should be seen with and after this execution.

[Maarten]

@GuiGou

However, I share the same concerns regarding the budget allocated to such a short campaign. I would prefer a longer campaign or one divided into several phases (e.g., three 70-day campaigns) to mitigate the risks of mercenary liquidity.
I also believe that implementing a vesting mechanism for the rewards would be a great idea.

Good feedback to divide it into several phases. I would like to highlight that Astar Foundation will keep monitoring the use of this allocation. When we see no traction or absolutely no hype there will be no point to use this whole allocation. We are not planning to use this allocation in full just because we have it. It will be managed well with clear report towards our community.

This size of allocation towards a point campaign should also be seen as a marketing tool to attract users and, yes, airdrop hunters without attention no point campaign works. Numbers built the hype and marketing.

I don’t think vesting is needed for this, let me explain why:

• Users need to claim at the end, there is no campaign where all users claim at the same time and dump the tokens. Even Yoki had many unclaimed airdrop rewards that later were returned to our treasury.
• ASTR has deep liquidity and trading volume on the market to capture most
• We hope to have a lot of users participating, making each bag not large in size.

[Maarten]

@you425

1. About the Reward

100M ASTR is 1.2% of the current circulating supply and twice the 24-hour trade volume according to the CMC. This is too large an impact on the market and we have major concerns about distributing it as is. I believe there are two simple ways to resolve this.

• Reduce distribution (about 20M ASTR?)
• Apply vesting (3~6 months?)

Great to have you involved in the discussion.
Just quoted you here to let you know that I shared my thoughts in my post above

[SimonB]

Hi everyone! I’ve thought long and hard about the ACS campaign, reflecting deeply and listening to community feedback to understand the initial sentiment.

First of all, I want to clarify that I fully support this type of initiative. I believe that with the launch of SONEIUM, a new era has begun, and ASTAR and $ASTR are now playing in the top league, where we need to play boldly and without hesitation.

We’re no longer in our small world on Astar L1; we’ve entered a global multichain scenario where the biggest players in Web3 are active. We need to play our cards right.

After contemplating whether it’s right or wrong to “reward” users who aren’t holders or users of ASTR on SONEIUM, I’ve come to this conclusion:

If $ASTR is truly the token of SONEIUM, the main asset, the key asset, the right and proper way to make everyone understand and highlight it for what it is, is exactly to be the “REWARD” of a campaign for ALL those who use the SONEIUM ecosystem—whether they use ASTR or other assets like ETH, etc.

If we truly want to be seen as the token of SONEIUM, we must act like it, being the reference ticker $ASTR within the SONEIUM ecosystem, even in rewarding users through a usage campaign.

If we kept the airdrop only for those who used SONEIUM with the ASTR token, we risk remaining a community within SONEIUM, creating our own campaigns and rewarding our own community.

I understand the slightly doubtful feedback from the ASTAR community, who understandably would prefer that the 100M $ASTR go solely to ASTR users in SONEIUM. But at this point, we need to take a bolder approach and show the world that SONEIUM has a token used to incentivize post-launch ecosystem usage in an incentive campaign. That token is $ASTR.

I know this may annoy many ASTAR holders, but this is the right first step to open the eyes of the rest of the SONEIUM users (those who aren’t ASTAR holders) that ASTAR and SONEIUM are operating as if they were a single entity, like the same project.

This personal vision of mine is obviously based on seeing this campaign as the beginning of a series of campaigns/strategies aimed at achieving our goals.

Of course, I expect SONEIUM to start positioning itself and moving forward as if Astar were part of it and $ASTR were its main token. I believe the team should push in this direction because ASTAR is giving a lot to SONEIUM, and I’m more than happy about this. But SONEIUM must also give recognition to ASTAR—not economically, but in terms of image. Astar should not be on the same level as other “partners” but should be showcased for what it truly is and deserves.

I believe the team is clear on this and already has a well-planned strategy. I can’t wait to discover the whole new adventure of Astar in this new world!

[Leo]

The impact of the tokens to be used in the campaign on the price is the part that matters to me. For this reason, I will read through all the discussions on this topic and support the decision that will be most beneficial for ASTR.