SIPS Name: SIPS-008
Status: Proposed
Author(s): @ilyamdv , @ResidentTGT and @vardhanam referring to @Hooded_Towels
Type: Text
Discussions-to: [SIPS-008] A Proposal for a Sommelier Token Airdrop of SOMM to Early Sommelier Pairings App Users
Created: 04/11/2022
Updated 05/01/2022
Simple Summary
After discussing the possibility of an airdrop for early adopters on the community forum and overwhelming positive reaction from the community during an informal discussion we propose (again) to reward early users. We also heard (again) community voices and adjusted airdrop amount that was previously accepted in [SIPS-002]. We propose the following new SIPS: Direct the Sommelier Network to airdrop 6 million SOMM tokens, from the 150MM Sommelier Community Pool, to early Sommelier Pairings application users based on their participation and liquidity participation levels up to October 31, 2021.
We propose that the Sommelier Network executes the distribution of tokens closely after the first cellar launch date (weeks not months ©).
Sommelier Foundation, If you are interested in the community taking this proposal and conversation to an on-chain vote, please send a signal with 10 SOMM tokens at this Sommelier Address: somm105htul08ktdykgzagt7awlnaa4maqrg3grmfwm. We will use this to deposit the 10SOMM required to start the voting period.
Abstract
The Sommelier total tokens created at genesis are 500,000,000. 30% of the tokens from genesis are assigned to the Sommelier Community pool. This means that 150,000,000 tokens are available for the network to distribute to the community to launch and grow the Sommelier economic system. We believe that the Sommelier network should assign 4% of the community pool, or 6 million (6,000,000) SOMM tokens to early Sommelier Pairings DApp users who provided liquidity.
We propose to distribute tokens based on:
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Transaction participation by any unique address on the Sommelier Pairings App
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Liquidity size and duration participation by any unique address on the Sommelier Pairings App
Motivation
This proposal is motivated by the fact that previous proposal with reward for early users and Liquidity Providers was only partly implemented. Early adopters haven’t received any Sommelier tokens which they expected when [SIPS-002] passed. There was a lot of misunderstanding and discussions on community forum and telegram regarding airdrop cancellation and we can see how strongly community supports that airdrop should be implemented. Early users represent core community, they are true believers, they stay with Sommelier even when the main product became totally different. If Sommelier respects the community and it’s dedication, we believe that early users should be rewarded.
Specification Overview
The Specification Overview is as follows, referring to [SIPS-002]:
This specification attempts to identify the Liquidity Providers on Sommelier DApp (Pairings).
Before in SIPS-002 it was attempted to query the blockchain to snapshot the following metrics of participation:
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Address participation
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Liquidity size participation
-
Liquidity duration participation
The 881 addresses were sourced from the Sommelier Dapp Exchange Contracts.
Technical Specification
Referring to [SIPS-002], it was attempted to query the Ethereum blockchain to snapshot the following metrics of participation:
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Address participation
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Liquidity size participation
-
Liquidity duration participation
Address Participation: Defined as any Ethereum address that used the Sommelier application and its underlying contracts to add liquidity to any Uniswap V2 or V3 pool up until October 31, 2021 will receive a participation award of SOMM tokens. The only requirement for participation should be a successful Uniswap transaction to add liquidity.
Liquidity Size Participation : Defined as any Ethereum address that added any amount of liquidity to a Pairings App Position. Distribution awards occur according to the size of the address participation with greater rewards going to larger liquidity provision activities.
Liquidity Duration Participation: Defined as any Ethereum address that added any amount of liquidity to a Sommelier Pairings App. Distributions are awarded according to the duration of the address participation with greater rewards going to longer duration.
We breakdown the proposed distribution of the airdrop of 6MM SOMM tokens into the following Table:
|Liquidity Provider Source|Proposed Distribution|Distribution Type|
| — | — | — |
|Sommelier Pairings App|4,000,000|Address Participation|
|Sommelier Pairings App|2,000,000|Liquidity Size & Duraton|
Total Tokens Distributed: 6,000,000
Before in SIPS-002 it was proposed to distribute total of 15,000,000 tokens, from which 6,300,000 tokens were supposed to go to Uniswap v3 LPs and 5,200,000 tokens to Sommelier Pairings App Early Users: 3,200,000 as a base reward and 2,000,000 as Liquidity Size & Duration reward.
Here in SIPS-008, as it was decided by the team to NOT reward Uniswap v3 LPs, we propose to distribute total of 6,000,000 tokens to Sommelier Pairings App Early Users: 4,000,000 as a base reward and 2,000,000 as Liquidity Size & Duration reward. There are total 881 addresses. So basically we add (4,000,000 – 3,200,000)/881 = 908,05 tokens to each address. That means we take 800,000 tokens more to reward Sommelier Pairings Apps Early Users from 6,300,000 tokens that were supposed to go to Uniswap v3 LPs, and the rest 5,500,500 tokens stay in Community Pool for further decisions.
User @ResidentTGT took old distribution file, recalculated amounts (somm_airdrop/new_somm_app_rewards.py) and created new distribution file, you can find it here:
Rationale
This proposal is an UPDATED DRAFT that we hope to open to conversation with the community. Below we summarize the key behavioral reasons that anchor why we think the Sommelier network should vote on this specific proposal and its implementation:
Sommelier Community “Sommelier needs to be grateful to early sippers and fairly reward them with Sommelier governance tokens for their contributions.” is a reasonable expectation shared by user @vardhanam on the forum here: Retrospective airdrop for Sommelier early users & supporters . And same point was repeated recently by user @ilyamdv on the forum here: Retrospective airdrop for Sommelier early users , also having a huge community support. We believe that the community call for participation in Sommelier Governance and the Sommelier Economy. Given the community feedback, we think the adjustments we propose will align with the comments of this SIPS section.