AIP #51: Introducing "Potion" a novel incentive mechanism for the Abracadabra ecosystem

Governance Proposals Voted Proposals
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AIP #51: Introducing “Potion” a novel incentive mechanism for the Abracadabra ecosystem

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Introduction

Following the successful launch of MIMSwap on the Blast L2 network, which has already amassed $10.8 million in liquidity, we propose the DAO to introduce a novel off-chain incentive mechanism, the “Potion” point system. This initiative is designed to sustain and build upon this impressive growth by making incentives more efficient and better targeted towards the right users and participants. This alignment with our community and ecosystem goals is pivotal as we continue to innovate and expand. Initially launching on Blast, the Potion system holds the potential for scalability and adaptation across multiple networks, with operational details to be refined in execution-specific Speedlane AIP (SAIP #51.x).

Background

MIMSwap’s robust performance on Blast demonstrates the community’s commitment and the platform’s potential for growth. To capitalize on this momentum, the “Potion” point system will reward liquidity providers with points that can be redeemed for SPELL tokens, under terms that will be detailed in subsequent proposals. This system is intended to enhance liquidity provider engagement and reward their contributions more effectively.

Allocation of Points

Points will be distributed based on two primary criteria:

  • Founders Boost (20%): Reserved for those who locked their liquidity, acknowledging their significant role in the platform’s early phase and ongoing stability.

  • Liquidity Provision (80%): Allocated based on the amount and duration of liquidity provided, ensuring rewards are proportionate to both the commitment and impact of each provider.

This structured approach aims to incentivize sustained and meaningful participation in MIMSwap.

Rationale

The Potion point system is aligned with the strategic vision to build upon the current liquidity success, driving further growth and stability in the ecosystem. It aims to create a more vibrant, engaged community around MIMSwap, providing clear, targeted incentives that align with our community and ecosystem goals. Its flexibility allows the DAO to iterate rapidly and create novel strategies, like Founder’s boost, to better identify and reward the most aligned users.

Proposal

We propose the following to the DAO:

  1. Establishment of the Potion Point System: Approve the creation of the point system to further incentivize liquidity on MIMSwap, beginning with the Blast L2 network.

  2. Future Governance and SAIPs: The DAO will retain full governance over the detailed mechanics of the Potion point system. Future operational details, including point accrual and SPELL token redemption processes, will be defined in Speedlane AIPs (51.x series) to ensure swift adaptation and implementation.

  3. Scalability and Adaptability: While the system initiates on Blast, it is designed with the flexibility to be potentially extended to other networks, aligning with broader strategic growth objectives.

Implementation and Further Steps

Specific details regarding the Potion point system’s operation will be determined through follow-up SAIPs (51.x series). This step-wise approach allows the DAO to refine the system based on evolving community needs and feedback, ensuring flexibility and responsiveness.

Further AIPs will define (for example):

  • The number of SPELL dedicated to the Potion Point system
  • The timeframe on which these SPELL tokens will be distributed
  • The redeem process

Voting

Discussion on this proposal will be open for the next 7 days, followed by a 72-hour voting period.

Voting is now live and can be found here.

All DAO members are encouraged to participate actively in refining this proposal and preparing for the subsequent SAIPs.

The proposal has passed.

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$SPELL MIMSwap at least 20

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Happy to see progress here. Hope to vote for it soon.

1 Like
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Voting should be live now :heart: