TBLIP - Boosting Blast's Ecosystem: A Multi-Tiered Incentive Program

BLIP - Research and Discussion
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Proposal Type: Ecosystem Development

Executive Summary

This TBLIP proposes a comprehensive incentive program designed to encourage deeper engagement within the Blast ecosystem, focusing on rewarding both large and small account holders. The program will impact all Blast users, particularly liquidity providers, active traders, and community contributors, and is expected to drive increased liquidity, trading volume, and overall ecosystem health, leading to a more robust and vibrant DeFi environment on Blast.

Motivation

Season 1 of Blast’s airdrop program, while successful in attracting initial liquidity, has resulted in a perception that the overall airdrop allocation was relatively small. This led to concerns regarding fairness and the need for a more robust system to incentivize continued participation and engagement beyond simply holding assets. This TBLIP addresses these concerns by proposing a multi-tiered incentive program that rewards various activities across the Blast ecosystem, benefiting both large and small accounts.

Proposal Details

This TBLIP proposes the implementation of three distinct incentive programs, each tailored to different levels of engagement and contributing to a more balanced and robust ecosystem:

1. The “Blast Point Boost” for Ecosystem Participation:

  • Mechanism: Create a dedicated pool of Blast Points for distribution based on specific actions that contribute to the overall health of the Blast ecosystem. This pool will be funded through a portion of the protocol’s revenue, ensuring ongoing sustainability.

  • Actions: Users earn Blast Points by performing the following:

    • Liquidity Provision: Providing liquidity to specific “core” pools identified by the community (e.g., ETH/USDB, USDB/BLAST).

    • Active Trading: Sustained daily or weekly trading volume on Blast (with a higher multiplier for smaller accounts).

    • Community Engagement: Contributing to community initiatives like bug bounty programs, governance proposals, and participation in relevant discussions.

  • Implementation: This program will be implemented through a dedicated smart contract that tracks user actions and distributes Blast Points accordingly. The specific actions eligible for rewards and the distribution criteria will be outlined and communicated to the community prior to launch.

  • Tiered System: To ensure fairness and incentivize participation across all account sizes, a tiered system will be implemented.

    • Small Accounts (Shrimp): Smaller accounts will receive a multiplier on their Blast Point earnings for certain activities like active trading and community engagement. This aims to level the playing field and encourage participation from all segments of the Blast community.

    • Large Accounts (Whales): Larger accounts will still benefit from the program through the dedicated pool of Blast Points, but their multipliers may be slightly lower to ensure a more balanced system.

2. The “Degen Bounty” Program:

  • Mechanism: Introduce a bounty program specifically for degens who contribute to the growth of the Blast ecosystem. Bounties will be awarded for:

    • Building innovative dApps that leverage Blast’s unique features and native yield.

    • Creating viral marketing campaigns to attract new users.

    • Identifying and reporting bugs or security vulnerabilities.

  • Implementation: This program will be implemented through a dedicated platform or process for submitting and evaluating bounties. The specific criteria for eligibility and the size of the bounties will be outlined and communicated to the community prior to launch.

  • Focus on Innovation: The program will prioritize projects that demonstrate a strong commitment to innovation and contribute meaningfully to the development of the Blast ecosystem.

3. The “Gold Allocation Council”:

  • Mechanism: Establish a “Gold Allocation Council,” comprised of a representative group of $BLAST holders, elected through a community-driven process (e.g., staking-based voting).

  • Responsibility: The Council will review and vote on project proposals for Blast Gold allocation, ensuring that Gold is distributed strategically to projects aligned with the long-term vision of Blast.

  • Transparency: All voting records and council decisions will be publicly accessible for review, fostering transparency and accountability.

Implementation

  • Phased Implementation:

    • Phase 1: “Blast Point Boost” Program: The “Blast Point Boost” program will be implemented within 4 weeks of TBLIP approval. This will involve the development of the smart contract, the definition of eligible actions and tiers, and the communication of the program details to the community.

    • Phase 2: “Degen Bounty” Program: The “Degen Bounty” program will be launched within 6 weeks of TBLIP approval, following the establishment of a dedicated platform or process for handling submissions and evaluations.

    • Phase 3: “Gold Allocation Council”: The “Gold Allocation Council” will be established within 8 weeks of TBLIP approval through a community-driven voting process. The Council will then commence its responsibilities in overseeing the strategic allocation of Gold.

  • Contingency Plans: If any program encounters unforeseen challenges or requires adjustments, the Blast team will work closely with the community to address these issues and revise the program accordingly.

Associated Costs

The primary cost associated with this TBLIP will be the development and implementation of the smart contracts for the incentive programs and the establishment of the “Gold Allocation Council” platform. The Blast team will conduct a detailed cost analysis and present a budget breakdown to the community prior to implementation.

Prior Proposals

This TBLIP builds upon the previous BLIP proposing a points distribution to $BLAST holders. It addresses the concerns raised by the community regarding immediate implementation and the lack of community involvement in the design by proposing a phased approach, incorporating community feedback, and introducing a tiered system to benefit both small and large accounts.

Additional Information

This TBLIP aims to establish a robust and transparent incentive program that fosters a more equitable and collaborative Blast ecosystem. It balances rewards for both active participation and community contribution, promoting long-term growth and ensuring that Blast remains a vibrant and thriving hub for DeFi innovation.

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This is a nouns dao starter kit for carving and recarving the turkey up for self interests.

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Hey @MisterTodd, thanks for the feedback! I hear your concern about the potential for self-interest. You’re right, any incentive program needs to be carefully designed to avoid creating unintended consequences or giving undue influence to any group.

I agree that we need to be vigilant in ensuring a truly fair and equitable system. This is why we proposed a multi-tiered approach with specific benefits for both smaller and larger accounts. We also want to empower the community with the “Gold Allocation Council” so that everyone has a voice in how Gold is distributed.

The “Degen Bounty” program is particularly interesting. It encourages innovation, community engagement, and can attract the most influential users, which would ultimately benefit everyone.

It’s important to have this discussion and to work together to find the best solution. We need to build a system that’s both sustainable and fair, ensuring that Blast continues to be a thriving and inclusive ecosystem for all.

Let’s keep the conversation going! What are your thoughts on how to mitigate the risks of self-interest and ensure a balanced and fair program?