ZWAP Value Proposition Design Option:

Summary:

I have been seeing a large number of people who seem to be concerned about the value proposition offered by zwap to zwap hodlers. This post is to outline a basic structure with two parts to bring value to zwap hodlers using:

  1. Zils seed node staking system that I designed and is currently in place.
  2. Native value proposition utilizing zwaps own design.

Abstract:

Bringing a sustainable feedback loop for value creation in the zwap ecosystem is essential. The goal, however, must be to ensure value creation & value capture for zwap hodlers. Zwap as a governance token is not enough.

Motivation:

I am odd and enjoy designing incentive systems. I have interest in building further incentive systems that build on previous ones. I designed the Zil seed node system incentive system as a base layer meritocracy and am willing to give advice on how to properly utilize it to create more value for zwap and other tokens in the ecosystem. All I require is a thank you if/when these structures are adopted.

Specification:

If properly utilized, seed node staking benefits any project w/ a team building it. The team can set up a seed node (that they likely already will have to run their services) and will set it up as a node with which to stake. They can set their commission rate at a competitive level. This commission % could be even potentially be voted on by zwap hodlers. From there, utility comes from what is built. The more value created and less commission = more stakers. This creates a meritocratic funding system that enables individual zil hodlers to help any project in a permissionless manner.

Zwap has a product/service that requires maintenance but which is also largely built. My proposal is to fix zwaps value proposition via the aforementioned two parts:

  1. give a % of fees to those staking zwap token, when they lock up zwap tokens.
    1a) optional have tiers with minimum lockup times that receive a larger % of the cut of fees earned if locked up for longer periods of time (example: .1% for 1 day lockup, .25% for 1 week lockup, .55% for one month).
    1b) optional use a % of fees earned from seed node to buy & burn zwap w/ node rewards.
  2. Team offers a seed node for zil hodlers to stake to so they can get rewarded with a % of zil staking rewards.
    2a) optional use a % of commission earned from seed node to buy & burn zwap w/ node rewards.

Thank you for reading the proposal if you got this far. I wish you all luck!

For:

Against:

Poll:

This idea was initially posted to my beyond bitcoin twitter account. It can be followed here: https://twitter.com/Beyond_Bitcoin/status/1450895544436596746

5 Likes

Fuzzy, I will give you the thank you now :slight_smile:

How as a holder of $ZWAP can I vote on this and/or when is the poll opening up?

GWH

3 Likes

My apologies but I am not sure how to put a poll in here or for zwap voting as im not a hodler.

I only joined to help out the project if I can. Perhaps someone on here can guide me as im kind of a noob to this forum software :relieved:

1 Like

THis is a Great Idea, I think we can defenetly put this for voting on Vote.zilliqa.com does anyone knows how to do that? we as a community need to push the ecosystem to develope and put in place systems that we think will benefit everybody. and in order to have people holding Zwap and Gzil these type of mechanism are a Must.

3 Likes

Thanks for your response. I look forward to seeing if the community runs with this or alters it in any way and then does so. Hoping it helps get the ball rolling either way :slight_smile:

2 Likes

This is an AWESOME idea, I like ALL of them actually! If people tweet about it then we could find out how to bring to a voteā€¦:sunglasses::raised_hands:t5:

1 Like

Vote.zilliqa.com

is this something that requires gzil to vote on?

Thanks fren. Just trying to help. Unsure the next steps though. It seems those who read it have thus far liked the proposalā€¦but honestly not sure where to go from here. Hoping someone can give guidance on next steps to take. Thanks for the support though!

Ill add on what I put in the TG group - just more ideas that might meld with the aboveā€¦ It was nice talking with you too @fuzzy !
here you go - someone run with thisā€¦

  1. ZWAP Staking.
  • Stakers get ALL transaction fees earned,
  • all ARK portions given to all zwap holders currently changed to stakers only
  • get a zil staking node and all zil earned to ZWAP stakers
  • get a reward multiplier somehow (needs fleshing out) for being a staker.

make zwap staking the be all and end all of ZWAP. I guarantee NOONE would sell it off then.
Earn zwap via LP, put it in staking to supercharge your zilswap experience.

as soon as the selling pressure is gone, LP lessened for the ZIL-ZWAP pool, then price should fly, and its a win-win cause as the price flys, APRs on ALL LP pools increases.
LPers of zwap-zil will get more as likely half the LPers will move to staking, further increasing APR there. the TVL for zwap is waaay too much for the trading activity.

for pools that dont qualify for zwap rewards, i guess you could say if ZWAP rewards transaction fees to zwap staking, if no zwap rewards transaction fees to that LP pool.

2 Likes

Thanks @DarthGus @fuzzy !! I hope this gets traction!

1 Like