ParagonsDAO Improvement Proposal (PDIP) #23: Prompt Points Program Implementation
Authored by FlapJackson
Summary
The PromptPoints Program aims to reward v2 PDT stakers with points that will convert to an equivalent weight of 90% of ParagonsDAO’s PROMPT allocation following its token generation event (TGE), and be dispersed to eligible stakers. After TGE, the Prompt Points program will end and ongoing PROMPT earned by ParagonsDAO will be integrated as a second reward token in the staking contract (in addition to PRIME).
Abstract
The Prompt Points Program incentivizes and rewards PDT stakers by implementing a points-based rewards system to allocate PROMPT earned before the TGE. This program will provide a second reward to stakers (in addition to PRIME), and provide a fair and transparent method of allocating ParagonsDAO’s pre-TGE PROMPT earnings to the community.
Motivation
The PromptPoints Program provides a fair and transparent method of allocating and distributing ParagonsDAO’s pre-TGE PROMPT earnings to the ParagonsDAO community. This puts PROMPT in the hands of community members as soon as possible. It also encourages users to migrate to Staking v2 in a timely manner to maximize their rewards.
Specification
Funding
The program will direct 90% of all PROMPT earned by ParagonsDAO before the token generation event (TGE), classified as “Rewards” under PDIP 19), to PDT stakers. 10% will be retained by the Treasury.
The program will reflect eligible PROMPT earned from June 19, 2024 (the first day ParagonsDAO cached PRIME in Wayfinder) until the PROMPT TGE (effectively, funding X months of the program with >X+2 months worth of PROMPT rewards).
Each staking epoch will be funded with an equal amount of Prompt Points. Once TGE occurs, all earned Prompt Points will be tallied, converted to the equivalent amount of eligible PROMPT, and distributed as appropriate to stakers.
User Experience
- Staking: Users stake PDT tokens through Staking v2 (and earn PRIME).
- Earning Points: Users earn Prompt Points using the same logic as how they earn PRIME rewards in the staking contract, based on their ratio of user weight to contract weight at the end of each staking Epoch.
- Tracking Points: Users can view their accumulated points on the Staking webpage.
- Receiving Rewards: After PROMPT’s TGE, ParagonsDAO allocates 90% of the pre-TGE earnings to those who’ve earned Prompt Points. PROMPT is distributed based on the total Prompt Points each user earned, and is dispersed to stakers through an airdrop.
- Ongoing Rewards: Users continue to earn 90% of post-TGE ongoing PROMPT rewards directly through the staking contract, which will fund the staking contract alongside PRIME.
Technical Considerations
Smart Contracts:
- Staking v2 Contract: Use the existing Staking v2 smart contract for PRIME rewards and future post-TGE PROMPT rewards, and to provide the necessary user staking data for Prompt Points tracking.
Offchain Points Tracking:
- Subgraph/Data Layer: Utilize a subgraph (or other fitting offchain solution) to read Staking contract data and track Prompt Points earned by users.
- Database Integration: Store PromptPoints data in a secure database.
- Data Synchronization: Ensure accurate reflection of staking contract data in the offchain points tracking system.
Web Integration:
- Points Dashboard: On the v2 PDT Staking page, ensure users can view their staked PDT, earned PRIME rewards, accumulated Prompt Points, and are provided with the information to understand their eligible PROMPT reward after TGE.
Disperse Rewards:
- Airdrop: Directly distribute PROMPT to eligible wallets at a reasonable time post-TGE.
Rationale
Alternatives considered include creating a new token to represent PromptPoints and directly fund the Staking v2 contract with it—this was deemed complex and uncertain due to potential multi-chain issues.
Also considered was building an app/interface for rewards claiming, which added development complexity and smart contract risk.
Copyright Waiver
Copyright and related rights waived via CC0.