BLIP - Incentive Structure Enhancement for Season 2

BLIP - Submission Forum
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Proposal Title: Incentive Structure Enhancement for Season 2

Proposal Type: Governance and Protocol Adjustments

Executive Summary: This BLIP proposes to remove Ethereum and USDB from earning points and replace them with $BLAST. The proposal seeks to introduce an exclusive point incentive for Season 2 targeted at $BLAST. This adjustment aims to bolster the use case for $BLAST by providing exclusive points to its holders, considering that holding Ethereum and USDB already earns rewards through stake rebasing. By doing so, the goal is to elevate the token, fostering increased adoption within the community, and potentially boost demand and utility across the Blast network, thereby benefiting all $BLAST stakeholders.

Motivation: The motivation behind this proposal is to address the lack of a compelling use case for $BLAST within the network. While the existing incentive structure benefits holders of Ethereum and USDB, $BLAST lacks a similar incentive, leading to reduced interest and lower holding rates. I acknowledge that there are plans to add points for $BLAST, but I do not believe that is sufficient incentive to facilitate growth. Implementing an exclusive point incentive for $BLAST will provide a strong motivation for the community to hold and utilize $BLAST, ultimately supporting its growth and stability.

Proposal Details:
The proposed changes involve:

  1. Implementing a point incentive system for Season 2 that exclusively rewards $BLAST holders.
  2. Adjusting the current incentive structure to remove or reduce points for Ethereum and USDB, focusing solely on $BLAST.
  3. Ensuring the incentive system is transparent and easy to understand for all community members.
  4. Monitoring the impact of this change on $BLAST demand and adjusting as necessary based on community feedback and performance data.

Implementation:

  • Timing: The new incentive system should be implemented less than two week after the start of Season 2.
  • Contingency Plans: If the exclusive $BLAST incentive does not yield the desired increase in demand, a review will be conducted, and adjustments will be made. Potential alternatives include reintroducing point incentives for Ethereum and USDB or exploring other ways to enhance $BLAST utility.
  • Milestones:
    • Proposal approval and community feedback phase: 1-3 days
    • Development and testing of the new incentive system: 1 week
  • Targeted Completion Dates: Full implementation less than 2 weeks after the start of Season 2.
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Thank you for drafting this Blast Improvement Proposal (BLIP). The Foundation has reviewed, and the submitted BLIP does not fall under Tokenholder purview in accordance with Section 4 of the Governance Bylaws.

Nevertheless, we appreciate the well drafted BLIP, as well as the time and consideration that went into this. However, because this BLIP does not meet certain requirements, or does not fall within Tokenholder purview, a Blast Foundation moderator is going to close this thread and move the thread to an archived channel.

While this BLIP does not fall under Tokenholder purview, community ideas and feedback are actively reviewed by the Foundation, and certain aspects can be implemented by the Foundation directly without the need for governance. We encourage community feedback and appreciate you sharing your thoughts here.