I get the impression that there is mixed opinions on whether or not Wonderland 2 would be positive at this time, and whether the DAO would approve of it or not. Although I am much so for it to go ahead, I wish to come with an alternative idea, that possibly could please both crowds.
As the topic title might hint towards, I propose a campaign focused solely for INF. The primary goal would be to increase INF position in the market of LSTs with use of $CLOUD incentives, but also handle a few other aspects in the process.
- A concern I have seen in regards to going ahead with Wonderland 2 is further diluting the circulating supply. This is a fair concern. Running a second season would likely mean another 10% of float being distributed. I personally am in the camp of thinking increasing float (circulating supply) is a healthy thing given the current low float, but it has to be done right. By that I mean;
- A good portion of the added supply needs to end up in the pockets of current holders, to limit the degree of dilution. This could be done by ensuring that holding $CLOUD serves a central role in the campaign/point program, and/or by simply reserving a portion of new tokens towards stakers/holders.
- It has to be effective in what its set out to do / being spent to achieve. It has to be net positive for existing holder base. If diluting token holders by giving out 10% additional CLOUD supply leads to increased token unit value, naturally people will be supportive of it.
Rather than setting aside 10% for a Wonderland 2, you could use a fraction of that and still see results for a “INF only” campaign rather than all/many other Sanctum LSTs. Thus diluting concerns arent as big, and as long as its done in a manner where its value add for current holders it shouldnt be a reason to not go ahead with it.
-
A argument for why Wonderland would be good is the simple fact that a large number of users miss Wonderland 1, and feel as if it is already over due. This could possibly satisfy those for the time being, before a proper Wonderland 2 makes more sense to pursue, and take off some pressure off doing second season earlier than whats best. The expectations for this should not be as high as some have for Wonderland 2, but I am sure the team (theyre more creative than me on this front) can include some stuff that would please the crowd who very much misses the Wonderland 1 experience. Somewhat inspired by a mix of pets from back then, and the vote impact of ASR, you could make a short list of INF related “tasks” that earn you a reward, eg. “Deposit INF into Kamino multiply” to earn a “Kamino badge” that serves as a multiplier/boost in the campaign.
-
Theres also a growing opinion that something should be done about increasing the mindshare for INF (the product) and CLOUD (the token), with the belief that markets are overlooking both of these, partially because the awareness isnt near as high as it could be. I think this sort of campaign would not only give INF the conditions for rapid growth, but first signs of CLOUD utility implementations. This is an area where you can get very creative, but generally I think its an opportunity to give improve the synergy between INF and CLOUD. Whether its something as easy as CLOUD held/staked playing a part in the rate of incentives during this temporary campaign, or something more technical and permanent as adding a fifth layer of yield for INF;
- Inflation + MEV + Block Rewards + Trading Fees + CLOUD BONUS (where cloud bonus represents the additional yield you earn from a share of revenue going towards INF, which is distributed based on CLOUD holdings, eg. 100 INF held with minimum of X amount of CLOUD unlocks your pro rata share of a reserves % of revenue). A creative way to give revenue share to CLOUD holders through INF. The campaign would basically give Sanctum a platform to put utility onto a token where its been a big request.
- Another reason for why I think a INF campaign would be nice is theres been a lot of progress on the defi integrations since Wonderland 1, most recently Kamino multiply. I think with this campaign you could showcase exactly that, while also really taking the spotlight in various products to further improve the position INF has. It is the best performing LST, and I think more people would come to see that over the campaign, who will be sticky users/TVL by the time campaign ends.
Some shorter points / ideas that can be considered:
- Incentives should be in sCLOUD rather than CLOUD.
- The campaign shouldnt run for long. Would rather have a shorter campaign with “loud” incentives rather than stretching it out over a long period that makes the incentive have little effect.
- If there is as of now, not an intention to reward INF TVL post S1 retroactively, I would like to see that being done here one way or another, as a means of “capital earnestness”. Whether that be a % of the total campaign supply going towards past INF TVL, or some meaningful reward for wallets that met a certain criteria to be considered “Loyal/earnest INF user”
- I want the vast majority of the incentive program, if not all, to be transparent and upfront. Dont open the door for people to speculate and get unreasonable expectations. Much to learn from how ASR distribution was met vs Wonderland S1. The people frustrated with ASR rewards were those who in reality only had themselves to blame, and majority was very pleased despite it being linear, cause they didnt enter with the hopes of their 1,000 CLOUD turning into 10,000 CLOUD.
I have more few more points that I could add, but I would like to keep it short as this is more so just meant to spark a discussion and for others to come with ideas of their own
