[Temp Check] A Recognized Delegate Program

Governance
1

Motivation

Currently 29 token holders have set up delegation, and of those only 4 have enough voting power(10M) to submit proposals.

Data: Tally | Union delegates

Goals

  1. Increase the number of token holders who have delegated
  2. Increase the number of active delegates with posted platforms so delegators can make more informed choices.
  3. Increase the number of delegates who can submit proposals.

Proposal

We propose implementing a recognized delegate program to distribute UNION tokens to active delegates and those who delegate.

We propose it be a 3 month trial, then continue or end based on the data.

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

  1. First step to be recognized: post a delegate platform to the forum, have a primary ENS and pfp set.
  2. Vote Regularly - Each month/distribution period if you miss more than 50% of the props you dont qualify that month
  3. 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, Dont 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 posted merkleroot. Open to suggestions of how to operate such a program fully onchain.

For Delegaters:

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

Distribution 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.

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 150k * (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.

Next steps

  • Leave a Comment if you think this is a good idea, bad idea, or have a suggested improvement.
  • Show your support by writing a Delegate pitch and posting it to Delegate Platforms
  • If this has garnered enough support by early next week will submit it as a proposal
3 Likes
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4/22 update: Some folks are rightfully storing their tokens in cold wallets/safes and voting from a hot wallet and the self-delegate requirement would disincentivize that good behavior. So nixing the 10k self-delegate requirement.