VNP-21 - Enable Referral Program
Hey everyone,
Now that the volume discount program has been passed, I thought I’d kick off a discussion about implementing a referral program.
It looks like there are 3 key aspects to play with:
- A discount on trading fees for a user you’ve referred
- A rebate you receive from the trading fees paid by a user you’ve referred
- A multiplier for the above based on the amount of VEGA tokens you’ve staked
There are some additional parameters which I propose to set:
- End of program timestamp = 1 year. This is how long the referral program will last. I propose to set this to 1 year as we can always edit the referral program during this period.
- Window length = 30 (30 days). The number of epochs over which to evaluate a referral set’s running notional taker volume. 30 days is pretty standard and will end up rewarding a referral set that is consistent over longer periods of time, which is more valuable for Vega.
- Minimum Epochs = 1. The required number of epochs a user must be in a referral set to begin earning its benefits. I don’t see why you’d want this to be long as you want to onboard as many users as possible and capture the small network effect of a referral set. As you can’t set it to 0, I’ve set it to 1.
Now for the fun stuff!
Referral Trading Discount & Referrer Rebate:
Firstly, I think it’s important to have a strong base tier to encourage users to try and refer as many people as possible.
Secondly, given we have a volume discount program we should just have a single flat fee that doesn’t scale with notional trading volume. It will become a nightmare to manage fees at both levels (+ the staked VEGA multiplier) + we don’t want fees to end up too low. If people are complaining about fees, we can adjust this with the volume discount program, because I think it’s pretty fair to assume that most traders will end up joining a referral set to reap instant benefits.
So essentially, we can just focus on scaling the referral rebate factor:
The proposed referral scheme is pretty aggressive in terms of achieving high referral rebates. This is due to Vega’s infancy and current trading volumes. It should provide enough motivation for users to begin their outreach and increase awareness of Vega
Similarly, I propose the following Vega Staking Tiers:
Full Proposal JSON:
{
"rationale": {
"title": "VNP-21 - Enable Referral Program",
"description": "This proposal requests to enable a referral program on Vega to promote awareness and trading activity."
},
"terms": {
"updateReferralProgram": {
"changes": {
"end_of_program_timestamp": TBD - (1 Year),
"window_length": 30,
"benefitTiers": [
{
"minimumRunningNotionalTakerVolume": "100000",
"minimumEpochs": "1",
"referralRewardFactor": "0.1",
"referralDiscountFactor": "0.1"
},
{
"minimumRunningNotionalTakerVolume": "500000",
"minimumEpochs": "1",
"referralRewardFactor": "0.15",
"referralDiscountFactor": "0.1"
},
{
"minimumRunningNotionalTakerVolume": "2500000",
"minimumEpochs": "1",
"referralRewardFactor": "0.2",
"referralDiscountFactor": "0.1"
},
{
"minimumRunningNotionalTakerVolume": "5000000",
"minimumEpochs": "1",
"referralRewardFactor": "0.25",
"referralDiscountFactor": "0.1"
},
{
"minimumRunningNotionalTakerVolume": "10000000",
"minimumEpochs": "1",
"referralRewardFactor": "0.30",
"referralDiscountFactor": "0.1"
},
{
"minimumRunningNotionalTakerVolume": "20000000",
"minimumEpochs": "1",
"referralRewardFactor": "0.35",
"referralDiscountFactor": "0.1"
}
],
"stakingTiers": [
{
"minimumStakedTokens": "100",
"referralRewardMultiplier": "1.025"
},
{
"minimumStakedTokens": "1000",
"referralRewardMultiplier": "1.050"
},
{
"minimumStakedTokens": "5000",
"referralRewardMultiplier": "1.1"
},
{
"minimumStakedTokens": "50000",
"referralRewardMultiplier": "1.2"
},
{
"minimumStakedTokens": "250000",
"referralRewardMultiplier": "1.25"
},
{
"minimumStakedTokens": "500000",
"referralRewardMultiplier": "1.3"
}
]
}
},
"closingTimestamp": 0,
"enactmentTimestamp": 0
}
}
}
