The Paradox Period has concluded and it is now time to decide how to distribute the retroactive rewards pool of 34.49116807 ETH.
This BIP puts forward a simple weighted vote across 10 categories. There are two additional categories from Fragmentation Period’s retroactive rewards: # of rounds a wallets voted in the first 48 hours and voting on the description each round. The retroactive rewards will be distributed according to the percentage of votes each category wins from the DAO.
A. Weighted vote on categories:
- Days voted
- number of fragments voted on
- number of Boosts
- number of Winners voted on before leaderboard
- number of rounds voted in the first 48 hours.
- VP spent in each round
- number of BIPs voted on in Snapshot
- buy back & burn $BOTTO
- send to treasury
B. Divide up retroactive rewards pool among categories and weight by rounds participated in
E.g. If “days voted” got 10% of the vote, 10% of the retroactive rewards pool would be distributed to voters based on the proportion of days voted relative to everyone else.
This is the second time we are distributing a Retroactive Rewards pool for a Period. Their intention has been to give the DAO an opportunity to decide on 25% of revenue at the end of a 12 week period with the available hindsight of what was seen as valuable contributions and potentially reward more diverse behavior.
You can see how that previous distribution went in the Snapshot for the Fragmentation Period's Retroactive Rewards distribution: https://snapshot.org/#/botto.eth/proposal/0xee75d5a014e497b98be7dc9b88f2e238717490a1e48d51f07c8e98b0748060d9
The DAO kept the system in place for the Paradox Period, which is the retroactive rewards pool this BIP is considering. Discussion considered adding another category for those who vote early in the round and help surface promising pieces so that they would be seen more as the round progressed.
Note: After further deliberation, the DAO has determined most of the categories are sybillable due to a limit on how much a single wallet can achieve in a given category. For instance, boosts can only be done max 5x per round, so having multiple wallets would allow someone to increase their weight in this category without having to add to their stake in Botto. This is not seen to align with Botto as it goes beyond diversifying voting behavior to simply unfairly draining rewards without adding value. Due to this, the DAO decided to discontinue retroactive rewards going forward in BIP-30.
This sheet contains the voting behavior data for the Paradox Period and allows people to play with different distribution scenarios.
We do not see any signs of significant gaming of the system as of yet, and the DAO discontinuing retroactive rewards was pre-emptive. With this, we suggest voting on categories of behavior you feel are most important in good faith that they were not gamed.
There are also alternative categories available for sending a proportionate amount of the retroactive rewards pool including the treasury, the burn, and active rewards (VP spent). These are available for voters who feel these are better categories to send revenue to than the retroactive rewards categories.
Making all of these categories available will provide some information on DAO preferences for the future as we continue to discuss rewards and types of voting behavior to incentivize. There are more targeted, sybil resistant options the DAO has not yet considered or experimented with, as well as future ways of adding general sybil resistance that would make some of these categories more feasible.
You can also see the data for the last Period’s voting behavior used in retroactive rewards here for comparison.
If you would like more context, we suggest reviewing the following BIPs:
BIP-14 – First established retroactive rewards as part of the economy
BIP-21 – Deliberation and BIP for distributing the first retroactive rewards pool after Fragmentation Period. See also the snapshot vote on this BIP for the final category weights.
BIP-30 – BIP and deliberation that removed retroactive rewards for the Rebellion Period.
2.1 Revenue to be distributed
Note: Revenue not counted for distribution this period is the 17.91076587 ETH from the Seaport Subject Edition sale and royalties with Verse and the Ryan Koopmans Collab. This will be distributed in the next period.
Qualifications for retroactive revenue distribution was established in BIP-14:
"user must have at least 2,000 $BOTTO staked by the end of the final voting round of the period."
The end of the Period was May 19th 22:00CEST / 16:00ET / 13:00PT
2.2 Defining categories to reward
The categories are defined in the table below. These calculations will only include eligible wallets who had 2000 $BOTTO staked at the end of the Period.
2.3 How to vote
Wallets can divide up their governance power among the categories in Snapshot however they wish.
For more info on how this works, see Snapshot's Documentation on Weighted Voting
2.4 Calculating the distribution weighted by rounds participated in.
In addition to the proportional contribution to each category, each category (except for VP Spent, Buy Back & Burn, and Treasury) will also be weighted by the wallet’s proportional participation of all the rounds.
For each category:
(participation in the category*rounds participated in)/12
To aid with deciding how to distribute your voting weight, we will provide several possible scenarios of voting outcomes to show what those final tabulations would look like in each case. We will also provide raw data for others to do their own analysis of different scenarios. *Update: data and scenarios are now available here.
- BIP published (today June 6th)
- Raw Data + Scenarios released by Wednesday June 7th
- Weighted Vote June 12 - June 15