The Ampleforth Community is seeking alignment for the use of their $FORTH tokens while the Ampleforth Protocol is searching for ways to stimulate governance participation/engagement.
Delegation structures have become integral foundations for governance representation but lack the incentive model needed to further scale.
Liquidity Mining is an inherent appliance throughout the Decentralized Finance ecosystem - largely rewarding participants for staking their tokens in return for a percentage of the respective protocol’s governance token.
A beneficial combination of these two concepts would be:
The overarching goal of this proposal is to:
- Improve Governance participation & representation.
- Deploy an incentive mechanism that will propagate engagement and community growth
- Augment $FORTH token utility.
The Delegation Mining process should adhere to general delegation & liquidity mining procedures.
Individuals looking to become Ampleforth Delegates can do so by announcing themselves as a delegate per Sybil or Tally. These newly formed delegates are now in position to receive delegate FORTH votes from community members.
By doing so, delegators will now be eligible to liquidity mine $AMPL tokens in proportion to the amount of $FORTH delegated. This liquidity mining structure will adopt the Geyser’s reward multiplier feature in which the longer participants stay delegated, the higher their multiplier (capped at 3x). However, these rewards will be largely reliant on the passing/denial of the proposal at hand.
If the Delegate’s vote is on the winning side of the proposal, the $AMPL rewards will be distributed as follows:
% of $FORTH delegated x Reward Multiplier = x AMPL received
The rewarded AMPL will be distributed via a time-locked faucet set with a vesting period of 90 days (1 Fiscal Quarter). The rationale behind this is to minimize/mitigate any potential gaming.
If the Delegate’s vote is on the losing side of the proposal, 0 AMPL rewards will be distributed.
FORTH Governance is very much still in its infancy but has caught the attention of the larger #DeFi crowd. Being one of the most economically sound projects in the crypto-economy, it is imperative that we - as a community - explore potential endeavors that will not only enable the continuation of scale but to also expand & challenge scope.
Full Disclosure: This proposal is in no way to be considered for immediate implementation, but to be taken into account as a possible Geyser iteration.