[Proposal] A Recognized Delegate Reward Program

Governance
1

Abstract

We propose a recognized delegate program to distribute 900k UNION tokens over a 3 month period to active delegates, and those who delegate to them.

Program Details

Participation Criteria:

For Delegates looking to qualify as “recognized”:
There is no application process, as long as you satisfy the following conditions, you’ll be added:

  1. First step to be recognized: post a Delegate Platforms to the forum & have a primary ENS and pfp set.
  2. Vote Regularly - Each distribution period if you miss more than 50% of the props in the previous 30 days, you dont qualify that month
  3. Minimum 100k in total Voting Power. Rationale: the min VP encourages delegates to reach that bar and lobby for voting power. This isnt meant to be a passive distribution.
  4. Lastly, Don’t be in default on any union deployment.

Some of the above is offchain, so to validate that the scripts run correctly the “Recognized delegate” addresses and script will be posted to a github repo, where anyone can run and verify the distribution results. Open to suggestions of how to operate such a program fully onchain.

For Delegaters:

  1. Read the delegate platforms Delegate Platforms - Union 1
  2. Delegate to the delegate of your choice.
  3. Dont be in default on any union deployment

Distribution Details

Distribution schedule
Begins on 5/15 to incentivize earlier action, and reward those who have already been active without incentivization.

  • 5/15 - 150k UNION
  • 6/15 - 300k UNION
  • 7/15 - 300k UNION
  • 8/1 - 150k UNION

Additional Details:

  • 900K in Total granted to the distribution contract(or safe) to be distributed over 3 months.
  • 150K/Mo to Delegates
  • 150K/Mo to Delegaters.
  • Only Qualified Delegates(1-4 above) and Delegaters not in default each month will be tallied.
  • In the pro-rata calculations: There will be an Upper Cap (10M) so we dont incentivize everyone delegating to one person.
  • As this is a trial, Exact mechanism for distribution will depend on whats the simplest and most gas efficient for the number of addresses that qualify but it will likely be a merkle claim, sablier airstream, or direct transfer on L1/L2.

The distribution script will work roughly as follows:

  1. Calculate the VP of all qualified delegates (max of 10M)
  2. Assign them a distribution based on ‘Distribution Amount’ * (their VP / Sum of Qualified VP)
  3. Then for each qualified Delegate will distribute that same amount to their delegaters pro-rata. (defaulters will be excluded)
  4. To avoid folks wasting gas for dust: any distribution less than 1 will be dropped.
  5. The distribution will then be posted to a merkleclaim contract (or however minimizes everyones gas costs).
  6. 14 days after the end of the 3 Month Trial, all unclaimed tokens will be sent back to the treasury contract.

A few example scenarios:
Note: exact amounts would vary.

  1. Bob has 10M VP from Alice. If bobs token allocation is 1k. Bob gets 1k. And Alice gets 1k.
  2. If Bob delegate 10M to himself: he gets 1k + 1k.
  3. If Bob has 10M VP from Alice, Jane, and Himself Bob gets 1k + 333. And Alice and Bob both get 333.
  4. If Bob has 20M VP from Alice (10M), Bob(5M), and Jane(5M). Bob will still only get 10M worth of rewards. And assuming 1k for the delegaters: Alice will get 500. Jane, 250, and Bob 250, but if they redelegated to someone with less than 10M, they’d be able to earn ~2x more.

Onchain Proposal Specification

Next steps

  • Review the proposal is technically sound and does what it purports to do.
  • Within the next 24hrs the proposal will be submitted for vote make sure you delegate before the prop is live or you wont be able to vote on it.
  • There will be a 24 hr delay period, followed by a 3 day voting period, and if it collects a majority and a quorum of 40M votes, it will be executed onchain.
  • Post your Delegate pitch to Delegate Platforms
2

Proposal deployed: Tally | Union Proposal

3

Proposal has passed: Tally | Union Proposal