Fund a Dynamic Base Allocation (DBA) pool with surplus B3TR from Dapps that achieve max. allocation
Proposal Summary
This proposal will focus on adding more balance to VeBetterDAO. There are clear signs of segregation between the projects. A handful of big dapps receive most of the weekly allocation while the many smaller dapps, and new projects, fight for the scraps.
While I do still think removing the initial base allocation was a good idea, it introduced this unbalance between the popular projects and the rest. This proposal does not in any way seek to slow down the popular applications. In fact - it will make sure when apps go viral, the whole VeBetterDAO ecosystem profits.
Currently, when a dapp reaches the 20% max. allocation in a round, the surplus B3TR is donated to the Treasury. This proposal seeks to change this behavior. Instead of funding the treasury, the surplus B3TR will fund a DBA pool for that round where every single dapp that meet the participation criteria will get their equal share.
While the max. allocation isn’t achieved that often yet, it’s already noticeable that some dapps are growing exponentially. By funding the dynamic base allocation pool with the surplus B3TR every round - every single dapp that meets the criteria will get an allocation boost when other dapps become increasingly popular. As the smaller dapps will receive more funds - they have more means to attract new users with marketing, increased rewards, etc.
It’s then up to every single dapp to use the dynamic base allocation to grow.
Proposal Changes
- Modified: Surplus B3TR will no longer be donated to the VeBetter Treasury but will fund a Dynamic Base Allocation pool. Dapps that meet the weekly criteria will receive their share of the DBA pool.
Only Dapps that meet the participation criteria will take part in the DBA pool. These are the criteria. DBA pool rewards are sent out after a round ended.
- Only dapps that rewarded B3TR with proofs in the round that ended are eligible for the rewards
- Dapps that receive more than 7.5% of the weekly allocation are excluded
- Dapps that are not fully endorsed are excluded
- Dapp that entered the round with 100 or more points and went below 100 is accepted
- Dapp that entered the round with less than 100 and ends the round with 100 or more is accepted
When there is no dapp that reaches max. allocation in a round, the DBA pool will be 0.
The DBA pool will be shared equally amongst all dapps that meet the criteria above.
Motivation
As mentioned before, this proposal seeks to bring back balance in VeBetterDAO - by rewarding the whole ecosystem when specific dapps outperform the rest. By introducing the DBA pool, B3TR that would end up in the Treasury is now equally reallocated to the ecosystem where dapps can use the extra funds to get more users and thus more votes.
FAQ
Q: Why fund a Dynamic Base Allocation pool and not simply return the B3TR back into the allocation pool?
A: When you add the surplus B3TR back into the allocation pool, it will just go to the “next big dapp” in line - feeding the unbalance even more.
Q: Why the certain criteria?
A: The original base allocation was removed because we wanted to protect the DAO from lazy dapps who’s sole purpose to exist was siphoning B3TR away for their own gain. By adding these criteria, only dapps that are active and actively supported get the share. Which means potential bad actors will not receive extra funding besides their voting allocation. We also make sure the DBA pools goes towards the dapps that need it, to recreate the balance.
Q: Why split it evenly and not let the dapp who reached the max. allocation decide where the surplus goes? In the end it’s their votes.
A: The max. allocation is there for a reason. It’s to limit the amount of power and influence a single project can get within the DAO. When you would allow a dapp to select their own favorites to receive the surplus, you will extend their power and reach and could lead to favoritism and centralization. That’s why, to keep the balance, DBA is equally shared amongst all dapps that meet the criteria.