As we all know, the [SIPS-002] was only partially implemented. Due to the fact that portfolio rebalancing and IL protection for LPs is no longer Somm’s main product (you can check Telegram for deeper explanation from Zaki), the team has decided to cancel the airdrop distribution for Ethereum LPs and Sommelier app early users. All funds reserved for ETH airdrop have already been transferred back to community pool.
I think that early users still should be rewarded with $SOMM.
For future distribution I suggest using the same list of 881 addresses that was made by the VolumeFi team earlier (you can find it here). It also would be fair not to adjust amounts and reward early users of the Pairings app with the same amount of tokens they expected in [SIPS-002] proposal.
It is logical that airdrop for uni lps was canceled, but I am fully agree with author that early app users should be rewarded and it would be fair not to change rewards.
i think that early users should be rewarded as they were early (lol) and also tested this product at early stages without any optimisation - paid inadequate gas fees (well, eth gas fees used to be high, but it’s too much even for eth, i paid about 200 usd in fees) for adding liquidity and many of them supported project via attending calls, making chat alive, etc.
I agree with the proposal. Early Users must be rewarded, as they are the most loyal users of Sommelier. We need to build a strong community - and participation of early users is an important part of the development. Cheers
I completely agree. The early supporters have done a lot for the Sommelier project, so it’s fair enough to reward those who support the project from the start with their own money.
Yes.
Cuz if osmosis atom/osmo lp got airdrops without knowing or using somellier.finance then the users of it should be rewarded generously and in my opinion the quantity going to uniswap LPs should be now distributed fairly between Sommelier users and it’s should be fairdrop as only 881 unique address are there.
I agree that early adopters of the dApp deserve to be rewarded.
And the token rewards given to the uniswap-v3 community could, I think, be used as a long-term liquidity incentive to be distributed to ETH/SOMM & OSMO/SOMM LP providers on Uniswap & Osmosis in batches according to epoch in the future, and a portion of it could also be used to reward a series of marketing efforts in future
I agree that those early users should still get the $SOMM that they were promised as early users were a big component of the initial building of Sommelier. A project is nothing without its community and it seems unethical in my opinion if these users don’t end up getting what they were initially promised when the SIPS-002 proposal was already passed.
Broadly I agree with any variance of rewarding early believers, and people who helped the team to test their initial ideas, despite the pivot in the product. (reason: Testing ideas can lead to the pivot, so early users might have contributed to the pivot as well)
However, I also understand team’s concerns about protocol’s changed focus and new realities.
That said my slight adjustment to this proposal would be to do the following:
There were total of 11.8M planned rewards for combined ETH users (app users + UNI v3 LPs)
I suggest that we divide that reward 50/50, where half goes to early users , as these are likely to engage with SOMM long term ( after-all most of us have used it for over a year, plus already purchased staked from OSMO pools, as we believe in the project long term). This would help the protocol, with decentralization of governance among core early users, and active atomic network of users that can kick network effects around this protocol
The distributed token from airdrop can be also locked up and distributed over 3 to 6 months for
price stability imo (this is not a must, but it is pretty standard these days)
The other half can be dedicated / locked for strategy providers, cellars development or front-end developers that can help make this protocol succeed in the long term
This means that app users would get additional 0.9M (900K( tokens, which can be done as a fair-drop to already determined wallets
Summary:
my offer is to distribute 5.9M out of 11.8M to early app users and the remaining 5.8M can go back towards community pool. Out of allocated 5.9M , 5M would be distributed to the early app users as scheduled previously and 0.9M would be a simple fair-drop to the same addresses.
This would make it to ~ 1.2% of total supply being dropped to early users, who can bring decentralized governance, and actively participate in strategy, cellar and front-end development for the protocol to make it successful in the long term.
Please feel free to voice your concerns, or challenge my proposal if I am missing something
I think the 50/50 split idea is quite fair. Part of me would love to just give the whole allotment to the early users but I think in the long run it would probably be better to use those funds to promote Somm in some ways like you suggested ( further incentivizing strategy providers is a particularly good idea). Building real value for the protocol is the best move for all of us.
Its probably more fair. Previously scheduled distribution + 900k additional tokens as compensation for all perturbations. Remaining funds (5.9M) return to community pool for further incentivizations
I agree with all these but this is not fair with them because early users plays a major role in project success and when you announce something for your community, then you must be loyal with them…
As an early app user, and as someone who took some risk by using the experiment dApp I would appreciate being given a vote in the governance. An airdrop simply means that the early adopters get a voice in the future of the ecosystem thru governance. I cannot judge if the proposal is fair.
In the old proposal, the metric was something like one token per USD invested in the protocol. Does the new proposal change the reward metric?
Either way I support this proposal moving forward.
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