I put up a lengthy post in the BIP thread, but posting in there requires mod approval. I won’t repost the content here quite yet, because perhaps it is waiting to be approved, but happy to get the discussion started.
How should Badger NFT holders be rewarded?
What is the proposal?
I resubmit it because I don’t think I followed the template properly the first time. It is still pending approval. Here it is to discuss further, but I’ve removed the vote element.
Category: Emissions
Scope: Rewards for those who sacrificed yield for NFT community building.
Overview:
$bBadger and $bBadgerwbtc holders sacrificed rewards to participate in Badger-themed MEME NFT community building event.
It is still ongoing. At present, the following is staked on the NFT farms,
0.000384354729052644 bUNI-V2 (over $50,000 value)
and
41,819 bBadger (over $500,000 value)
Badger stated that NFT holders will get APY boosts (https://twitter.com/BadgerDAO/status/1338135475379449857)
This BIP proposes a reward framework for NFT holders.
Details:
There are 6 $MEME Badger-themed NFTs.
They can be farmed here:
Or acquired on the secondary market, including total amount and number remaining at time of post:
Mt Gox - 500 (490 remaining)
HODL - 500 (488 remaining)
Pizza - 100 (90 remaining)
Silkroad - 100 (72 remaining)
BTC Whitepaper - 10 (SOLD OUT)
Satoshi - 10 (SOLD OUT)
The secondary market has been active, including a 21,000 USDC purchase of the Satoshi card. Badger NFTs account for 3 of the top 6 MEME NFTs by marketcap (https://niftyrank.com/). The community building has been strong.
My proposal is that for each unique NFT held, the account holder gets a 5% boost on rewards. This 5% should not compound, but be additive. I propose these boosts are implemented in the Week 4 emissions (December 24th) and continue throughout the 10-week Liquidity Mining schedule, for both $badger and $digg.
Rewards Received per unique NFT held:
I initially set this at 10% per NFT, but changed it down to 5% so that numbers do not skew too wildly. Many NFTs still remain available to give everyone a fair chance to mint an NFT to earn an APY boost. The more rare NFTs are available on the secondary market if any users want to maximize their APY boosts.
Implementation:
Subject to approval there is work that would need to be done to bring this to reality. As for technical implementation, it is not my area of expertise, so I would wait for the team to comment on the difficulty of this change.
Wouldn’t it be fair to base the reward (apy boost) on the rarity of the NFTs?
In a way it does.
You can get 105% or 110% by holding the 2 NFTs that have 500 supply. If you want to get up to 115% or 120% you need to hold the 2 that have only 100 supply. If you want to be in the upper echelon of 125% or 130% you need the very limited edition ones where there are only 10.
Now it’s possible you might only have the limited edition one, and not the other ones, but I would imagine those with more abundant supply will be much cheaper on the secondary market. They are also still available to mint right now.
I worry it will be mostly a whales game since they farmed/bought the LPs. maybe we run this as a limited run boost at some point. Which isnt bad because those that farmed can sell at higher prices but i would say just run it as a limited time boost (like for a week two). that or actually reduce the increase in rewards as you obtain more. an extra 30% is worth way more to someone staking $1m vs someone staking $1k worth and that yield for the $1m staker comes at the expense of the little guy.
It would be nice to have some utility of NFT’s in Badger ecosystem but it can be discuss later as still many left to be mint. For now i would like to see that Badger Pool on MeMe is included in Digg distribution.
I think the rarity of the NFT needs to be taken into consideration more than just the 5% additive boost you have in your proposal and I would also like us to cap the boost by limiting the amount the boost can apply towards. This is what I suggest and please feel free to provide feedback but all boost would only be applied to the maximum amount that was allowed in the meme event in bBadger and Badger LP and would last the duration of the Badger LM event.
[Mt Gox] - 500 - Boost to Badger Staking +50%
[HODL] - 500 Boost to Badger Staking +50%
[Pizza] - 100 Boost to Badger Staking +100%
[Silkroad] - 100 Boost to Badger Staking +100%
[BTC Whitepaper] - 10 Boost to Badger LP Staking +200%
[Satoshi] - 10 Boost to Badger Staking LP +200%
They do not stack so its capped at the max boost amount of a single nft with the exception of having all 6 which would increase things x2 to 200% and 400% toward Badger and Badger LP. Again this is capped at the max amount that it was possible to stake on meme.
By capping the amount boosted this should prevent the influence of whales getting an oversized advantage to the detriment of others.
Didn’t realize there were two threads for this and I posted a note in the BIP section originally. To the point of the actual rewards, rather than throwing out arbitrary figures or a direct boost to APY, what about a boost to the underlying multiplier? That’s really what was “given up” in exchange for meme/pineapple farming vs the underlying badger Sett multipliers. So each card would get a very minor multiplier to the multiplier on a scale to “catch up” back towards the original 3x final target at the 8 week mark. We’d have to be sure to limit the amount effected by said multiplier to the original assets pulled from the pools (ie 200 badger per card). Maybe even throw in a VERY minor bonus for the efforts, letting the final bonus land just past 3.0x for instance, to ever so slightly incentivize those NFT’s value. I also emphasize that any reward needs to be skewed towards the easiest to attain cards, not the hardest! The calculation for the LP card’s value would be slightly more involved, but a similar concept could easily apply.
As an example to illustrate how this might work with a single x/100 card. There are 56 days in the original 8 week LM event. With a linear scale from 1x to 3x (aka 300%) multiplier, you’re essentially gaining roughly 5.37% boost daily (300%/56days). Pulling 200 bbadger out on day 9, redepositing on day 15 after grabbing the NFT asap, redepositing into sett/stake resets your clock. Your new max multipler is only 2.25x now (5.37%*42 days). So a catch up multiplier could add in this example 1.79% daily for holding the card. At the end of the exact same LM event, a card holder would now hit 3.0x multiplier just as if they never left the pool in the first place. Of course, there should also be a cap placed on the amount of bbadger that this applies to at 200. I haven’t yet checked the math on how different the compounding looks at those varying sliding percentages, but might be another consideration to adjust the figure presented above.
If merely holding the card applies this bonus, the secondary market will be able to set a price for it’s boost naturally and do their own math of value vs incentive. And these should really only even be considered for the initial LM events and not at all perpetual. What other factors would need to be considered to award the bonus?
Lastly, the above is probably a complicated pain in the you know what to actually implement and something like Po suggested in another thread like an airdrop would be far easier and consume less dev resources on an admittedly very minor blip in the grand badger/digg scheme!
I love the project! I’ll purchase mine soon.
I’ve revised this. I think perpetual APY boost is difficult and could create the wrong incentives.
I think NFT holders should get a % of the DIGG airdrop.
Right now 15% is carved out for airdrop.
3% of that should go to the NFT holders, split as 0.5% to each unique NFT.
Meaning for the rarest ones, there are only 10 holders, so they only have to split the 0.5% between 10 of them.
For the most common ones, there are 500, so they split the 0.5% across 500 people.
I think this creates the right balance.
I’ve actually adocated in a brief comment on limiting benefits for NFTs in the DIGG airdrop based on rarity. The total sum in DIGG across all NFTs would be ~45 DIGG.
I was contemplating some variations on how to reward folks for being a part of the dontbuymeme nft event which is still “ongoing” without creating additional dev work and as is my usual pattern , to keep things simple. The idea would be to just award the holder of the NFT a Digg airdrop at the end (or perhaps the somewhere in the middle, maybe two weeks in) of the 8 week LM program. This would a) reward event participants for the time and badgers lost by staking at meme b) reignite the enthusiasm of folks to collect the remaining unminted nfts c) create some buzz and auction activity at Opensea. The amount of Digg would increase with its rarity and be roughly x2 or so the value of the “badgers lost”. I calculate the cost to be about 45 Digg to fund across all possible NFTs. Any thoughts/feedback on whether this seems reasonable/acceptable?
anyone know more about this project?
https://forum.badger.finance/t/nft-proposal-how-about-a-badger-honeyguide/3084
I worry it will be mostly a whales game since they farmed/bought the LPs. maybe we run this as a limited run boost at some point.