VGT-3 Setup Arbitrum trading games using CAF

🗳️ Governance Proposals Governance Initiated Transfers
1

Hello everyone.

After witnessing the protocol’s entry into a new phase with spot markets, funded markets from Arbitrum (with the successful migration of perpetual markets), UI improvements, Axelar bridge, among others. I believe that just as the team has maintained sustained rewards for LPs, we the community can replicate the 2 most successful games with a duration of 60 days and continue to attract new traders and future holders. From the first and second games, there was an increase in users and all that entails, including new names on the leaderboard. Now that the barriers to entry are lower and we have spot markets (a more complete protocol) thanks to the latest updates, we can attract new users and reward them for using the network. It is imperative to continue to give dynamism to the community that lost interest, reflected in valuable LP funds in the migration to Arbitrum. I hope for your support and views on this proposal, they will be well received.

Games to be carried out:

Traders will be ranked by relative PNL, and can qualify for rewards in 2 categories:

  • Traders that stake at least 1,000 VEGA tokens will be eligible to share a prize pool of 1,000 VEGA each day

  • Traders that hold an average notional position size of 100 USDT in a given epoch will qualify to share a prize pool of 1,000 VEGA each day

Additional details:

  1. All rewards will be locked for a period of 30 days, after which they will vest at a rate of 25% of the vesting balance each day
  2. The maximum amount receivable in a trading competition will be capped by the fees paid by each trader in a given epoch at a ratio of 5000:1 (for example, paying $1 in fees will result in rewards being capped at $5000)
  3. The games are proposed to run for the next 60 epochs, allocating a total budget of 120,000 VEGA to trading competitions starting this month

I am not a coder, this is a modified copy based on the previous game. It would be very helpful if @banks could review it or someone else from the community to make a request without errors.

Full Proposal JSON:

{
  "batchProposalSubmission": {
    "rationale": {
      "title": "Setup Arbitrum trading games using Community Adoption Fund ",
      "description": "VGT-3  Setup Arbitrum trading games using CAF"
    },
    "terms": {
      "closingTimestamp": "1721386800",
      "changes": [
        {
          "enactmentTimestamp": "1721386800",
          "newTransfer": {
            "changes": {
              "sourceType": "ACCOUNT_TYPE_NETWORK_TREASURY",
              "source": "",
              "transferType": "GOVERNANCE_TRANSFER_TYPE_BEST_EFFORT",
              "amount": "1000000000000000000000",
              "asset": "d1984e3d365faa05bcafbe41f50f90e3663ee7c0da22bb1e24b164e9532691b2",
              "fractionOfBalance": "1",
              "destinationType": "ACCOUNT_TYPE_REWARD_RELATIVE_RETURN",
              "destination": "",
              "recurring": {
                "startEpoch": "983",
                "endEpoch": "1043",
                "dispatchStrategy": {
                  "assetForMetric": "2a1f29de786c49d7d4234410bf2e7196a6d173730288ffe44b1f7e282efb92b1",
                  "metric": "DISPATCH_METRIC_RELATIVE_RETURN",
                  "markets": [],
                  "entityScope": "ENTITY_SCOPE_TEAMS",
                  "individualScope": "INDIVIDUAL_SCOPE_UNSPECIFIED",
                  "teamScope": [],
                  "nTopPerformers": "0.2",
                  "stakingRequirement": "",
                  "notionalTimeWeightedAveragePositionRequirement": "100000000",
                  "windowLength": "1",
                  "lockPeriod": "30",
                  "distributionStrategy": "DISTRIBUTION_STRATEGY_RANK",
                  "rankTable": [
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                      "startRank": 1,
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                  ],
                  "capRewardFeeMultiple": "5000"
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              }
            }
          }
        },
        {
          "enactmentTimestamp": "1721386800",
          "newTransfer": {
            "changes": {
              "sourceType": "ACCOUNT_TYPE_NETWORK_TREASURY",
              "source": "",
              "transferType": "GOVERNANCE_TRANSFER_TYPE_BEST_EFFORT",
              "amount": "1000000000000000000000",
              "asset": "d1984e3d365faa05bcafbe41f50f90e3663ee7c0da22bb1e24b164e9532691b2",
              "fractionOfBalance": "1",
              "destinationType": "ACCOUNT_TYPE_REWARD_RELATIVE_RETURN",
              "destination": "",
              "recurring": {
                "startEpoch": "983",
                "endEpoch": "1043",
                "dispatchStrategy": {
                  "assetForMetric": "2a1f29de786c49d7d4234410bf2e7196a6d173730288ffe44b1f7e282efb92b1",
                  "metric": "DISPATCH_METRIC_RELATIVE_RETURN",
                  "markets": [],
                  "entityScope": "ENTITY_SCOPE_TEAMS",
                  "individualScope": "INDIVIDUAL_SCOPE_UNSPECIFIED",
                  "teamScope": [],
                  "nTopPerformers": "0.2",
                  "stakingRequirement": "1000000000000000000000",
                  "notionalTimeWeightedAveragePositionRequirement": "",
                  "windowLength": "1",
                  "lockPeriod": "30",
                  "distributionStrategy": "DISTRIBUTION_STRATEGY_RANK",
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                  "capRewardFeeMultiple": "5000"
                }
              }
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          }
        }
      ]
    }
  }
}
1 Like
2

Hi @AngelDelN,

Thanks for the proposal.

While I don’t have an issue with the proposal and think it’s fine. I really don’t think these games are doing much given the lack of its marketing and awareness. If you look at Vega’s dune dashboard there is little data to suggest prior games were successful and infact it looks like over the last month we have seen a decrease in daily traders despite rewards

image
image1852×567 24.1 KB

So to me it seems like we are simply just wasting Vega.

Maybe we can combine such game launches with @0xfatman’s marketing efforts

2 Likes
3

Yes, the idea of the games is to maintain incentives for traders for 2 months to cover Fatman marketing efforts, considering that the USDT prize is not as attractive compared to other protocols (also affected by the current price of the token). This game running in the background will give them the opportunity to continue using the platform even after its arrival. I do not consider it useless, rather it is a valuable complement to the campaign that is about to start this month, leveraged on the fact that the barriers to entry are even lower thanks to Arbitrum.

4

While everyone has a different opinion. According to me why would we waste any vega at current levels anyways. To my understanding coinbase is/was an investor why can’t we do a learn to earn campaign on coinbase . Education is very important we should focus on educating people first rather than doing these games .
If we really want to do something productive we should increase the supply and than do an airdrop campaign . As airdrop is a hot topic and easy to raise TVL on the platform it can be productive.
That is just my opinion. I do not think at this time any games will bring any new user or fresh capital to the protocol .

5

@Sparrow Thank you for your perspective on Coinbase. I’ve been with Vega for over 3 years now and they’ve never done anything directly related to the protocol (and this wouldn’t be the first time this has happened to a project they’ve funded). The team has practically divulged the protocol on all major web3-related podcasts, from talks to partnerships at Ethdenver, to various publications in Cointelegraph, The Block, etc., and yet we’re still in this situation.

On the topic of increasing the supply, Barney recently said that it’s not a short-term option because it would be detrimental to holders and validators, and an airdrop today doesn’t guarantee any success. We have examples like Parcl, Blast, etc., and even well-funded L1s like Starknet and Zksync are struggling after distribution.

Having been here long enough, it’s safe to say that we’re on our own, at least for now. This game would make it easier to reward traders, just like other important actors like LPs and validators are rewarded, making it easier to promote through integration with Arbitrum.

If we want to bring the project to success, it’s in our hands and our individual ability to spread the word about the protocol. In my opinion, this game, along with Fatman’s marketing efforts, is a good opportunity to revitalize the protocol, or we can just sit around and wait for VCs and whales to keep dumping. It would be good to ask ourselves if there will be another Borovan or if it’s up to us to give the protocol value so that new buyers come in to own the VEGA token.

6

The proposals are still somewhat outside our realm, aside from some casual knowledge. But especially the finer details of games. It would be more productive to join forces with someone like @0xfatman for these activities.

On the note of airdrops, I agree that this cycle it has been a bloodbath of dumping as people seem to have grown ever more short sighted. The more successful airdrops have been options to buy tokens at a discounted price with vesting.

Vega did have one airdrop recently for users who participated actively in governance that was quite generous: VEGA Active Governance Reward. The Vega project is rewarding active… | by Vega Protocol | Vega Protocol
Whether the airdrop lead to anything positive is another question and perhaps too easy to rationalise after the fact

7

hi @banks , the code has already been reviewed and modified for correct operation, would you be so kind as to upload vor voting in governance it as you do regularly? it will no longer have errors. thanks.