Decide the Rewards Distribution for Season 1

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Author: Ambire Wallet Date: June 10, 2025

Proposal overview

This governance proposal constitutes the reward distribution for users of the Ambire extension, which happens through Ambire Rewards, the onchain rewards system of the extension.

The question is: Should we allocate rewards in Ambire Rewards for Season 1 as described in the proposal below?

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Proposal details

Rewards will be awarded after the end of the season and based on a snapshot taken at a random time, each week during the Season 1 period. They will be calculated using a formula that includes your Ambire Rewards level (based on your XP earnings) and the equivalent of your balance in USD. The duration of Season 1 will be approximately 3 to 4 months.

Rewards will be claimable in $stkWALLET. Once the rewards mechanism has been decided, we will provide additional information on how to claim prizes, unstake, etc.

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Rewards formula

The weight (or proportion) of total rewards for each season per player will be calculated using the following formula:

Weight = Level x sqrt(BalanceInUSD)

Rewards will be distributed at the end of the Season 1, proportionally to user’s weights in each week of the season period.

A user’s level is based on their XP using the formula level = floor(sqrt(xp) / 4.5).

BalanceInUSD will be calculated by averaging your balance across random time points in each week of the period. This ensures that users are incentivized to keep their balance high throughout the entire period. It will be calculated using the Ambire portfolio functionality as implemented in GitHub, on the networks included in Ambire Rewards: Ethereum, Base, Optimism, Arbitrum, Scroll, and BNB.

Example: If you are level 15 and your (BalanceInUSD) is $2,000, then your weight will be 670.82. Here’s how it looks applied in the formula: 15 x sqrt(2000) = 15 x 44.72 = 670.82.

The actual rewards will then be calculated as follows:

Your rewards = total amount of rewards x (your weight / sum of all weights)

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Rewards eligibility

In order to qualify for Ambire Rewards you must:

• Be using an EOA which has been upgraded to a smart ЕОА using the Ambire wallet browser extension (e.g. with a transaction batch) with an existing Ambire character minted on it.
• Be using an Ambire v2 (extension) Smart Account, which has an existing Ambire character minted on it.
• Be at least at Level 3 or higher.
• Have a total balance of at least $500 USD

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Motivation

The opinions of the Ambire community are super important to us - now more than ever. We want to empower extension users to have their voices heard and to help us shape the future of Ambire Rewards and the Ambire extension too.

With the proposed rewards mechanism, we are aiming to ensure the following:

• Users keep funds in their extension accounts continuously (and not just add funds for rewards distribution, then withdraw).
• Rewards are issued directly to the users and automatically staked (rewards will be paid out in $stkWallet).
• We take multiple factors into account, not just XP, to ensure a fair and balanced distribution of rewards for different kinds of users.
• Ambire Rewards players are involved in the decision-making process for the future of Rewards and the Ambire extension.

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Voting eligibility

Anyone holding $WALLET or $stkWALLET (make sure you have migrated if you still hold $xWALLET) tokens before the snapshot on June 10th 2025 at 14:00 UTC, will be eligible to vote. Voting power of $stkWALLET tokens is double the voting power of $WALLET tokens. Users who stake tokens after the snapshot will not be eligible to vote with their $stkWALLET.

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Useful Links

Ambire Governance Votes Website GitHub Twitter Discord Telegram Forum Rewards Guide