Should We Reward EOAs and v1 Accounts as Part of the Extension Launch Incentives?

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Author: Ambire Wallet Date: November 1, 2024

The Ambire Wallet extension launch is due in Q4 2024, and with it comes an essential question for our community: Should we reward accounts imported into the extension? With 195 million $WALLET tokens allocated for the extension incentives, the decision now lies with you. This vote builds on the previously approved incentives, and as we prepare for the launch campaign, we’re focusing on how these rewards will be distributed. Current extension beta testers can potentially earn rewards for using the extension, putting them in a favorable spot as we move forward.

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Terminology

To help clarify the key concepts for this vote, we’ve defined the following terms related to Ambire Wallet:

EOAs (Basic Accounts)

Externally Owned Accounts (EOAs) are user-controlled accounts commonly known from wallets like MetaMask and Rabby and hardware wallets like Trezor or Ledger. In Ambire Wallet Extension, a.k.a Ambire Wallet v2, we refer to these as Basic Accounts due to their limited functionality compared to Smart Accounts.

Smart Accounts

Smart Accounts, built on smart contract technology, offer far more advanced capabilities than EOAs. Features like transaction bundling and gas payments using ERC-20 tokens are native to Smart Accounts, making them ideal for enhanced security and flexibility. All accounts created in Ambire Wallet v1 (Web and Mobile) are Smart Accounts by default. In Ambire Extension (v2), users can unlock Smart Accounts with a seed phrase or derive them from imported EOAs.

Ambire Wallet v1 Accounts

These accounts are created on the Ambire Web Wallet or Mobile App (Android and iOS) and are Smart Accounts by default.

Ambire Wallet v2 Accounts

These accounts are Smart Accounts, derived from an EOA’s seed phrase (signer key) or imported from a hardware wallet device into the Ambire Wallet extension.

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Proposal overview

This governance vote asks: Should we reward imported EOAs (Basic Accounts) and v1 accounts (created on Ambire Web and Mobile App)? As Ambire prepares for the extension launch, this decision will determine how incentives are distributed for these account types. The vote will play a key role in shaping how we reward early adopters and encourage new user engagement, all while ensuring that the Ambire ecosystem grows sustainably as we introduce more advanced features in the extension.

Please note that, in any case, Smart Accounts created in the Extension WILL be rewarded according to previous governance vote results.

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Proposal motivation

At Ambire, we see Smart Accounts as the future of Web3. The Ethereum Foundation has long supported this direction, and recent developments like EIP-7702 and the Pectra Update are accelerating this vision. Vitalik Buterin has repeatedly emphasized that Smart Accounts are key to Ethereum’s endgame, providing security and convenience.

Ambire Wallet is currently the only wallet on the market that fully supports both Basic Accounts (EOAs) and Smart Accounts, thanks to hybrid account abstraction.

The shift to Smart Accounts is inevitable, and users who adopt them now will benefit from cutting-edge features like transaction batching, simulation, gas payments with ERC-20 tokens, including stablecoins, and better security by default, significantly improving the overall Web3 experience.

In short, Smart Accounts offer the best of both worlds—future-proofed technology with the superior user experience Ethereum has always aimed for.

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Voting options and outcomes explained

The table below breaks down each option, explaining what it means for users and how it could impact account imports and rewards. Use this to understand the potential outcomes and make an informed decision.

| Voting option | Explanation | Pros | Cons | |---------------|-------------|------|------| | Reward EOAs (Basic Accounts) | Incentivizes importing and using EOAs into the extension. | Encourages user acquisition and initial participation. | Does not encourage Smart Account adoption. Prone to airdrop farming. | | Reward v1 (Web/Mobile)Accounts | Rewards importing and using v1 accounts created in Ambire’s web/mobile wallet. | Acknowledges early adopters and rewards existing users. | Does not encourage migration to the superior Ambire Wallet extension v2 accounts. | | Reward both EOA & v1 accounts | Incentivizes both account imports and usage into the extension. | Broadens participation and encourages a more extensive user base. | Dilutes the focus on Smart Accounts, reducing Ambire’s growth potential long-term. | | No, none of the above | Focuses all rewards only on v2 Smart Accounts. | Prioritizes long-term Smart Account adoption and Ambire Wallet extension v2 migration, reducing airdrop farming. | Some users preferring their legacy accounts may feel excluded and miss out on incentives. |

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Proposal impact

The way we distribute rewards will shape users' interactions with Ambire Wallet. Focusing on Smart Accounts derived in the extension ensures users get the full benefits of Ambire Wallet’s improved UX and security.

On the other hand, incentivizing EOAs and v1 accounts directly without associating them with a Smart Account would prevent users from experiencing the advanced features of the Ambire Wallet extension v2 and from enjoying the superior usability and security offered by hybrid account abstraction.

As the extension launch nears, Smart Account users will be better positioned to access the 195 million $WALLET token incentive pool, which will set them apart in Web3 and unlock exclusive features.

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Voting eligibility

Anyone holding xWALLET tokens before the snapshot on November 1, 2024, at 15:00 UTC will be eligible to vote. Users who stake tokens after the snapshot will not be eligible.

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Useful Links

Ambire Governance Votes Website GitHub Twitter Discord Telegram Forum