BIP 14: Digg Distribution Overview

Category: Digg
Scope: Overview and Approval of Digg Initial Distribution
Status: Accepted

Objectives

  • Explain the inputs and the distribution mechanics
  • Explain the rationale for the parameters of these inputs
  • Seek approval and consensus on the approach (For/Against)

Overview

Thank you all for your patience. The feedback we received within 250 comments across 2 threads on the forum and countless messages on the Discord took time to synthesize. This BIP is created in collaboration between @Mr_Po, @UnlimitedPower, @DeFiFrog, and myself, and we’re excited to present the following distribution model we’ve designed together incorporating community feedback.

This BIP covers 14.5% of the total 15% of the airdrop that will be distributed to existing and previous participants of the Badger setts. A small portion (~0.5%) is being set aside and will have more details released soon.

Of the 14.5%, the proposed distribution has three main allocations based on:

  • Total Badger Rewards Earned (55%),
  • Badger Earned / Badger staked ratio (35%), and
  • Badger tokens Staked Over time (10%)

Parameters

1. Earned Rewards

Earned Rewards mean Total BADGER an address has earned through the Badger tree. Rewards are based on weekly emissions and accrued multiplier. Both claimed and unclaimed rewards are accounted for.

This parameter indicates how much an address has supported Badger by using Sett products.

2. Badger Stake Days

Badger Stake Days factors in how supportive an address was to the Badger token. The parameter is defined by Total BADGER & BADGER LP staked multiplied by the days it has been staked.

The calculation is made per day, and Badger that was put into LP gets x2 to account for the WBTC portion of the pool.

The distribution covers the entire history of Badger existence before the DIGG pre-launch snapshot, which hasn’t occurred yet.

3. Badger Stake Days / Earned Rewards Ratio

Th ratio is intended to take into account how supportive an address has been in staking BADGER tokens relative to the amount of rewards it has earned over time.

4. Root

A 1.75 root will be applied to the Earned Rewards to determine the relative distribution. Making the DIGG wealth distribution more equal among Badger users will benefit DIGG as a product, increasing its store of value capacity.

For instance, if we were to apply linear distribution, top-100 addresses would be granted around 71% of DIGG Earned Rewards airdrop. With the 1.75 root they get close to 33%.

For the distribution to be more Sybil-resistant, addresses that have earned less than 50 Badger will receive the same DIGG multiplier per Badger earned relative to linear rewards as addresses that earned 50 Badger.

Summary Breakdown of Airdrop

  • 55% Earned Rewards
  • 35% Earned Rewards / Badger Stake Days Ratio
  • 10% Badger Stake Days

Implementation

  • Voting for and against.
  • Apply agreed upon parameters to the excel model based on data from the snapshot.
  • Plug data output into merkle tree for $DIGG distribution
Vote on proposal for distribution mechanics above
  • For
  • Against

0 voters

32 Likes

About time! :frog:

In all seriousness, thank you to the community for coming together to help us design the very first elastic supply/rebasing token pegged to Bitcoin itself. This will be a historic moment for all of us, and I’m thankful to be a part of the design and execution of it.

36 Likes

Finally! Let’s release this beast :star_struck:

12 Likes

About time!
How would one actually go about calculating their approximate DIGG allocation?

6 Likes

Let’s do this! Thank you @jonto very precisely put!

One clarification that may pop up, will LP provided to the Sushi Badger-BTC pair before Badger UI was enabled be considered as part of Tokens Staked over Time?

I assume that since it was SLP and not bSLP it will not be considered?

4 Likes

Lower the root and hook up the NFTs.

8 Likes

Again a very clear and thorough explanation. Couldn’t agree more with this proposal.

3 Likes

10 Likes

Great work guys. Fully support!

3 Likes

sounds good to reward those that have been there. but might not be there anymore. since they have helped during the bootstrap. its only fair to give them something too.

Proud Badger as always. Good work team! Let’s keep up this effort

1 Like

Anything in the works for the meme nft stalkers that got no apy boost due to community voting it down? We had out badger there for weeks when we could have just left it

5 Likes

kick ass… that is all.

1 Like

Great outline. Concise and clear. Excited to see this moving forward!

Since you mentioned Sybil-resistance, does that mean that there’s a minimum base amount of DIGG that’s being allotted per address? Otherwise, not sure why Sybil is a factor since it’s all proportional to the amount earned and staked anyway.

1 Like

Will there be any consideration for coverage providers utilizing COVER? thanks and good work BADGER team.

2 Likes

Awesome work team! Fully supported the ideas.

1 Like

太有意思了,我一定会非常喜欢这个模式,哈哈哈

1 Like

Much appreciated. Please don’t exclude the NFTers from this fair distribution.

6 Likes

The team did a great job, congratulations everyone❤️

1 Like

People have taken out their staked coins to mint NFT. If NFTs do not have much significance, why don’t you just airdrop them rather than having people mint them and lose staking rewards. I think the team should put little more thought into initiatives they come up with rather than just doing funky experiments.

6 Likes