Author: Sommelier Team
Discussion: Discussion for upcoming Community Spend Proposal regarding Strategy Season, a contest to incentivize strategy deposits and strategy token usage.
Posted: 10/30/2022
Goal
The goal of this forum post is to discuss an upcoming Community Spend proposal that is tentatively scheduled to be posted to Governance the week of October 31st.
The proposal is for a one-time spend in the amount of 500K SOMM tokens to be awarded as prizes for a community contest. The aim of this contest is to encourage strategy deposits and strategy token usage over approximately a 3 month period (tentatively scheduled to begin in early November).
In this post, we would like to discuss the content of the proposal and provide opportunity for the community to provide feedback before the vote goes live.
Context
As Zaki mentioned in his earlier forum post, we are looking to rapidly expand our reward and incentive schemes. Through a well-designed contest, we hope to incentivize meaningful and sustained participation in strategies and introduce virality to our marketing efforts.
Community Spend Proposal: Strategy Season
SIPS Name: SIPS-016
Status: Not Yet Proposed
Author: Sommelier Team
Discussion: Discussion for upcoming Community Spend Proposal regarding Strategy Season, contest to incentivize cellar and strategy token usage
Posted: 10/30/2022
Proposal
Grant of 500K (”five hundred thousand”) SOMM for a one-time spend to promote Strategy Season, a contest to incentivize strategy deposits and strategy token usage. Through a well-designed contest, we hope to incentivize meaningful and sustained participation in strategies and introduce virality to our marketing efforts.
Strategy Season will run for approximately 3 months (tentatively scheduled to begin in early November) and aims at incentivizing strategy deposits and strategy token usage for ETH-BTC-Trend, ETH-BTC Momentum and other strategies that are soon to follow.
SOMM tokens will be used to fund prizes awarded to contest winners. Participants can increase their chances of winning a prize by doing certain activities. These activities include, but are not limited to, placing more value into a strategy, staying in a strategy for longer periods of time and participating in multiple strategies. However, it’s important to note that doing these activities does not guarantee a participant will be a winner. The group of winners is likely to be much smaller than the actual number of participants in the contest. The prize structure will also be tiered, which means that winning some prizes receives a higher SOMM reward than others. Lastly, in order to receive their prizes, all winners will need to complete KYC (Know Your Customer). If a winner is not comfortable completing KYC, another winner will be selected.
Funding
Total amount: 500K (”five hundred thousand”) SOMM tokens
This proposal is intended to authorize a one-time transfer of 500,000 SOMM from the community spend pool to a to-be-announced multi-sig (will include specifics in the official proposal). Funds will be used as prizes for contest winners. The total amount of tokens in the proposed program presents ~0.35% of the current Community Spend pool. To reiterate, this is a one-time transfer. In the future, Sommelier may want to launch other incentive programs with different parameters - any future incentive program is outside of the scope of this governance action and will require a new proposal.
Conclusion
In this post we outlined the upcoming Sommelier Community Spend Proposal regarding Strategy Season.
We would appreciate any feedback on how to ensure the proposal best reflects the interests of the Sommelier Protocol and Community.