Given $CLOUD’s established market position, it’s imperative to introduce a utility that aligns with its current value. This utility should provide tangible benefits to holders, reinforcing $CLOUD’s status as a valuable asset within the Sanctum ecosystem.
Proposed Solution:
Leverage Sanctum Ecosystem: Implement a reward system that utilizes existing Sanctum infrastructure and tokenomics.
Reward $CLOUD Holders: Distribute $INF tokens to $CLOUD holders based on their stake size and a dynamic coefficient.
Support $INF: Strengthen the value of $INF by increasing its volume, distribution and utility within the Sanctum ecosystem.
Implementation Details:
Reward Pool: Allocate a portion (e.g., 0.05%) of the total yield generated by staked LSTs on Sanctum to a reward pool ($INF excluded).
Token Conversion: Convert the collected SOL from the reward pool into $INF.
Distribution: Airdrop $INF tokens to $CLOUD holders based on their proportional stake and a dynamic coefficient.
Coefficient: The coefficient starts at 50% and increases by 0.5% daily, reaching 100% after 100 days. This rewards early adopters and encourages long-term holding.
It is important to notice that someone with less $CLOUD can be rewarded better than someone with a bigger bag just because they staked their tokens earlier.
Benefits:
Provided $CLOUD Utility: Provides a reason for holding $CLOUD.
Enhanced $INF Value: Increases the demand and circulation of $INF, potentially boosting the reward on trading fees for holders.
Community Engagement: Rewards early believers and fosters a sense of loyalty within the Sanctum community.
Potential for Additional Features: This proposal could be completed by more basic features, such as voting. Or more unique ones like a Tamagotchi-like game idea with different LST’s pet. With features like going on adventures, playing mini-games and generating energy to do those activities by holding $CLOUD, $INF, other LSTs or completing missions within the Sanctum ecosystem.
By implementing this proposal, Sanctum can enhance the value proposition for $CLOUD holders, strengthen the ecosystem, and foster a more engaged and loyal community.
thanks for taking the time and putting this out there
couple of questions/thoughts
firstly: although small why would a LST partner give up a % of their yield, especially its going to be sold/converted into $INF, not sure selling a partners token into our own is the look or way we shoud be going
second: if airdropping INF (or anything) to cloud stakers, does that not put in the realm of (potentially) being coming under being classed as a Security ? (i’m no expert so would defer to anyone with a more professional understanding, but thats my basic laymans take i’ve taken from a few projects) as a major platform i would air on the side of caution and stay away from any grey areas as much as possible
In the Web3 ecosystem, it’s standard for services like swapping and minting to incur transaction fees. This is a widely accepted practice and shouldn’t be seen as a major obstacle.
But of course LSTs must be aware of it and agree to it.
Why not a “Partner Badge” for LSTs that agree on the fee for their users. This badge would highlight their commitment to and could potentially attract more users to their platforms.
For the second one. I don’t have the answer for it. The reward could be $CLOUD, but I believe people would be more interested if it was $INF.
Sure fees for swapping, minting etc this sounds more of a additional cost or tax. Whilst yes of course there are benefits in launching via Sanctum, for some of the smaller or goodwill LST providers every cent will count, it could potentially be of putting, or at worst a barrier.
Plus theres maybe 50+ LSTs launched already agreed without such a cost, so to be fair we’d have to go back to each of them for the %
As for any regulation issue it needs someone with a better legal understanding, (again i would defer to someone with more knowledge) but as i understand it doesn’t matter what was being airdropped (cloud or inf as you’ve suggested) it could still remain a potential issue
I believe the tax could be on individual, and let the share the same for the LST.
Bank keep lowering interest rate but people still put money there. I don’t think something as small as 0.05 or 0.02 would scare away people.
It is as I see it. Of course it is just a proposal, and there always have people not happy with it.
But I think it is a good way to reward $CLOUD holders, give the token value, and still keep Sanctum signature with the higher rewards for long term believers.
thanks for the proposal. my comment on this is also like johnny mentioned. the current suggestion asks lst providers to give up a portion of their staking yield to reward $cloud holders, which might not benefit the lsdt providers directly. how do you make the lst providers benefit by giving up 0.05% of stake?
johnny airdroping probably makes it security if there is no work involved yeah. should be probably converted to claim + something would’ve have to be required to be done by claimer in order to redeem the “reward”.
. We still don’t know how the winner will be selected.