0. Summary
This BIP does not discuss weekly VP reset or changes to calculating LP staking VP generation.
TL;DR BIP-54 proposes that:
- All accounts receive 100VP per round, provided they log in during the round.
Strategic Objectives:
- Reduce friction in the onboarding experience (streamline users to voting).
- Build towards a more decentralized voting user base (user acquisition).
- Activate more web2 native crowds (open up participation).
- Consolidate target audiences into a unified app experience (one app for all).
1. Rationale
Since Botto was launched, there have been a number of hurdles to overcome in order to reach a basic level of participation. Directly after having a basic understanding of Botto, users discover that they need Voting Points (VP) to be able to participate. To get VP, they need an Access Pass or the $BOTTO token.
For crypto-natives, this is a small concession to make - hop onto Uniswap to pick up the token, or head to OpenSea and pick up an Access Pass (or both!). For non crypto-natives, the concession is greater: understand what a wallet is, understand what OpenSea or Uniswap is, onramp funds, and then buy the collectible or token.
We’ve aimed to make this as straightforward as possible for any level of user in our docs, however, in all cases we are asking for a commitment from a new project entrant before offering them any experience of participation. While the token provides access to an incentive ecosystem to encourage participation, token-gating discounts the amount of participation we could see that is motivated by curiosity alone. We intend on removing this friction by allocating a nominal amount of 100 VP to all accounts, ensuring that we are funnelling as many users as possible towards experiencing Botto.
We are approaching this with an understanding that the $BOTTO economy not only plays a role in attracting feedback, but also in aligning participation. This proposal aims to grow overall participation and decentralization of inputs while maintaining the primary influence of token participants and protecting against any sybil risk that could dilute rewards.
1.1. Reducing Complexity
Based on the above, it should be apparent that the flow for any web2 and web3 users is long winded and complicated. We want to shift the message for any new user towards what we see as a three step flow:
- Head to Botto’s site
- Create an account
- Start voting
This allows for far gentler touchpoints in introducing fundamental layers of the curating experience (i.e. the concept of VP, how it’s generated, how to get more) as they progress through the app.
1.2. Consolidating Multiple Environments
At many of Botto’s exhibitions/shows, the DAO has presented attendees with the ability to experience Botto in a separate “exhibition app”. We have struggled to onboard users from this exhibition app to the real Botto app. One of the major friction points here is that the user was required to get an access pass or buy the token to continue their journey, with the other major friction point being getting them to revisit Botto.com to just keep voting. Consolidating both the exhibition app environment and the real Botto voting app into one environment is something already in the works. We still need to resolve for the user continuing their journey: By implementing a baseline level of VP for new users, Botto’s new app can offer a more straightforward entrypoint for new users to continue experiencing Botto without any intermediary or remedial steps (like adding an email flow, or having to purchase an access pass claim).
It’s important to note here that we aren’t relegating the objective of new users having the freedom to acquire the token at any stage: instead we are trying to ensure that users have continuity in their experience and that it’s really simple to get started.
1.3. Why 100VP?
The previous proposal suggested 350VP per round per account to mirror the quantity of new fragments appearing. We’ve since adjusted this to 100VP to reflect VP as more of a finite resource (so you can’t vote on every new fragment that appears in a round) and to promote mindful curation.
1.4. Why do we want more voters?
First, it is important to source a larger voting base to contribute more data to Botto. A larger voting base is also accretive to Botto’s narrative (larger user base, more decentralized contributions, stronger reinforcement of Botto’s agency, better representation, richer diversity in perspectives). Currently, we have anywhere between 250 voters to 750 voters in any given round excluding participation from external front-ends, such as Farcaster (see DAU/RAU data). We expect the quantity of DAU/RAU to grow significantly when paired up with growth campaigns and Botto’s lined up shows, panel talks, and other events - provided we solve for this major friction point in user experience.
1.5. Are we prioritizing “web2 growth” by implementing a baseline VP?
The short answer here is no: all users (including existing ones) benefit from a baseline VP, and a baseline allows for experiential onboarding and the opportunity for anybody to participate freely over time. The user interface will still make the purpose of $BOTTO abundantly clear. Botto is still being built with web3 growth at the heart of all of this. We see the implementation of a baseline VP per round as additive to user experience. The new app accommodates account abstraction for all web2 users, so they’re set up for a web3 experience in the long run.
1.6. What if we didn’t provide any VP for “new” users?
Not adding this leaves users landing on Botto’s site without an initial way to participate and likely stopping their progress there. We have been using community access passes to help alleviate this, but they are fairly slow onboarding tools as they require a new setup each time we deploy one. If we do not pursue this proposal, the DAO should aim to build out a separate user flow for incoming users that do not have the token or an access pass.
1.7. Then why shouldn’t we just offer a demo/separate user flow?
There are a few trade offs present if we offer a demo/user flow that gate keeps voting contributions:
- We wouldn’t be taking advantage of an opportunity to provide Botto with more data.
- A separate environment adds an unnecessary layer of complexity for the new user.
- New users are forced to understand differences in their experience
- When users understand they are “walled off” or offered a simulated voting experience, there will be significant drop-off in engagement.
1.8. Why not just airdrop new users with a free access pass?
This is a form of subsidy which adds cost to (organic) user acquisition. An approximation of this cost is $0.37 per user. This is not scalable with the DAO’s resources, even with Thirdweb subsidizing user actions (subsidies will exhaust quickly).
1.9. How is the 100VP per account per round subsidized?
There are multiple ways to do this and we’re keen on collating ideas and subsequent feedback. We see three viable options:
2. Proposal Specification
There are three options proposed in this BIP:
Option 1 - Uncapped & Unsubsidized
Provide 100VP for all accounts that log in during a round. These VPs are not subsidized by any party. They also don’t count towards calculating active rewards.
Advantages:
- This is the simplest implementation with no external dependencies
- This solution scales with growth infinitely, no future action would be required
- Offers seamless continuity in any new user’s onboarding experience.
Disadvantages:
- This solution is inflationary.
- VP dilution through increased VP on market.
- $BOTTO token utility can be challenged by the '1 token, 1 vote' narrative and the methods of appraising the value of Voting Points (VP) relative to token ownership.$BOTTO token utility is challenged (1 token, 1 vote narrative, and methods of appraising value of a VP relative to token ownership).
Option 2 - Treasury VP Subsidy
- Mark all accounts in Botto to generate 100VP per round, provided they log in during the round.
- Mark existing DAO PoL as the subsidy.
- Prepare a separate view to see total subsidized users versus total VP delegated
Provide 100VP for all accounts that log in during a round. These VPs are subsidized by the DAO through its LP position (17,214 UNI-V2). This accommodates up to 34,428 voting accounts per round where 1LP = 200VP.
As an extension to Option 2, the DAO could consider increasing this limit through a subsequent proposal, by either staking a portion of the treasury's $BOTTO and/or enabling delegation from stakers other than the DAO to continue subsidizing VP.
The assumption here is that the DAO does not require the treasury to stake its LP shares in the LM contract to make this happen (separate discussion, if any!).
Advantages:
- This solution reduces the prospect of inflating VP on market
- A simple compromise with only the DAO treasury and a reserve of the LP as a dependency
- This solution scales with growth up to 25,821 users
- Offers seamless continuity in any new user’s onboarding experience.
- Makes use of DAO’s existing PoL position
- $BOTTO token utility is not challenged
Disadvantages:
- Quantity of “free” users capped by PoL growth.
- May cause issues if voter base growth exceeds VP provided by the DAO.
Option 3 - No Change
In this scenario, the DAO opts to have no subsidization of VP for new/existing accounts. New accounts would require a separate onboarding experience.
Advantages:
Keeps an onboarding VP generation system that has worked for the existing participants base.
Disadvantages:
Friction in the onboarding experience will most likely result in losing a high percentage of users acquired through growth campaigns and activation events.
3. Snapshot
All four options will be presented on Snapshot with a ranked choice voting, where governors order their preferred options. If no option receives at least 50% initially, the bottom choice is eliminated and those votes are shifted to the governors' second choice. This continues until an option has >50%.
3. Criteria of Success
Success for this proposal will be measured by increase in Round Active Users (RAUs) which we will appraise through the rest of 2024.
5. Disadvantages
Options 1,2: Confusion on VP subsidization.
Option 3: Friction in the onboarding experience will most likely result in losing a high percentage of users acquired through growth campaigns and activation events.
