Scope: Overview and Approval of Digg Initial Distribution
- 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)
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%)
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.
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
- 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