SAIP #51.1.2 - Detailed Distribution Plan for the "Potion" Point System

Governance Proposals Voted Proposals
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SAIP #51.1.2 - Detailed Distribution Plan for the “Potion” Point System

Introduction

Following the successful passing of AIP #51, this document outlines the detailed distribution plan for the “Potion” point system. This plan aims to ensure transparent, efficient, and fair distribution of points within the Abracadabra ecosystem.

Overview

The “Potion” point system is designed to incentivize liquidity provision on MIMSwap, starting on the Blast L2 network. A total of 10 million Potion points will be distributed which will be allocated to MIMSwap founders. Currently, all of the addresses LPing on MIMswap actually are founders, hence rewarding them is the easiest way to ensure proper distribution.

Distribution Explanation

1. Founders’ Allocation

  • Total Points for Founders: 10 million Potion points
  • Eligibility: Founders who locked their liquidity in the early phase of MIMSwap’s operation.
  • Distribution Method: Founders will receive their Potion points in a lump sum at the commencement of the distribution period.

Distribution Mechanics

Founders’ Distribution

  • Verification: Verify the list of founders who locked their liquidity.
  • Point Allocation: Allocate 10 million Potion points proportionally based on the amount of liquidity locked by each founder.
  • Distribution: Execute the distribution in a lump sum to the verified founder addresses.

Implementation Steps

  • Preparation:
  • The Development and testing of the distribution software to ensure accurate point allocation has already been conducted and concluded by DAO contributors, together with the setting up the tracking system for real-time liquidity provision and point accrual. This system is easier to be implemented as we just need to focus on the Founder’s side.

Future Considerations

  • SPELL Conversion: The conversion rate of Potion points to SPELL tokens will be determined by future DAO votes, using the AIP #51.X format.

  • Scalability: The system is designed to be adaptable for extension to other networks and other MIMswap deployements, subject to community and DAO approval. The following system will be able to be easily expanded to chains like Arbitrum, where MIMswap is being deployed.

  • Continuous Improvement: Feedback from the community will be incorporated into subsequent SAIPs to enhance the distribution mechanism.

Governance and Voting

  • Discussion Period: 1 day for community discussion and feedback.

  • Voting Period: 24 hours for DAO members to vote on the detailed distribution plan.

  • Active Participation: All DAO members are encouraged to participate in discussions and voting to ensure the plan aligns with the community’s best interests.

Due to quorum missing, some amendments have been done to the above text and a new vote has been posted here.

By following this detailed distribution plan, we aim to maintain transparency, fairness, and efficiency in rewarding our community and ensuring the long-term growth and stability of the Abracadabra ecosystem.

The proposal passed.

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