STP-8: SNX incentives for integrators
| Author | |
|---|---|
| Status | Draft |
| Implementor | TBD |
| Release | TBD |
| Created | 2023-10-12 |
Simple Summary
Allocate up to 5m SNX from the Treasury to reward outstanding Synthetix integrators with escrowed SNX grants, increasing the role of long term partners in the protocol.
Abstract
This proposal introduces a structured incentive mechanism for Synthetix integrators through escrowed SNX grants. A total of up to 5 million SNX from the treasury will be earmarked for this program. This approach is designed to reward high-performing integrators, promoting long-term collaboration and enhancing the protocol's growth, without expanding the SNX circulating supply.
Motivation
Robust and lasting integrations are key to the success of the Synthetix ecosystem. Building integrations is a commitment, and the absence of a well-defined incentive structure could impede the number and quality of integrators. Establishing a structured incentive mechanism is essential to cultivating the right calibre of lasting integrator partnerships.
Specification
Overview
Award escrowed SNX grants to high-performing partners based on sustained volume targets. The targets should be designed to bring significant value to the platform, as well as fees to LPs.
Rationale
Establishing a direct financial incentive for integrators aligns their success with the broader Synthetix ecosystem. Sharing governance privileges and fee revenue ensures that significant fee contributors are duly rewarded, fostering a mutually beneficial relationship and protocol growth.
Financial Specification
Beginning July 2024, partners achieving specified average daily volumes will be granted the following escrowed SNX grants:
| Tier | Average Daily Volume | Months | Protocol Revenue | TC Revenue* | Marginal TC Revenue | SNX Grant | Marginal SNX Cost to TC** |
|---|---|---|---|---|---|---|---|
| Bronze | $250,000,000 | 3 | $9,000,000 | $1,530,000 | $1,530,000 | 1,000,000 | $1.5 |
| Silver | $500,000,000 | 6 | $36,000,000 | $6,120,000 | $4,590,000 | 1,000,000 | $4.6 |
| Gold | $750,000,000 | 9 | $81,000,000 | $13,770,000 | $9,180,000 | 1,000,000 | $9.2 |
*Fees to TC are based on current 4bps average fees, with the TC estaimted 17% of the debt pool, and fees. **Marginal SNX price at grant is an estimate using cumulative fees earned by the Treasury Council for any prior tiers
Volume from lower tiers counts towards higher tiers, and each tier can only be achieved once. The grants will be escrowed for 24 months, with a 12-month cliff, followed by a 12-month linear monthly unlock.
Copyright
Copyright and related rights waived via CC0.