The ‘AVA Open Loyalty Protocol’ is a key initiative described in the AVA 2.0 Whitepaper involving the development of an on-chain AVA Smart Program that allows Smart members to interact with their memberships via their self-custody wallets.

The proposed first phase of launching this protocol is establishing the ‘AVA+ Rewards’ perk put forward in this proposal. This perk will enable Smart members to lock up additional AVA via their on-chain wallets within a smart contract and receive ‘AVA+ Rewards’ in AVA on the locked amount.

The overall goal of this initiative is to improve the attractiveness of the AVA Smart Program and increase the total value locked (TVL) of AVA in a manner that simultaneously rewards Smart members on an ongoing basis for future travel while laying the groundwork for the expansion of the AVA Open Loyalty Protocol.

The yearly cost of this proposal is estimated to be approximately 600,000 AVA (based on the parameters outlined in the ‘Funding’ section below). If the proposal passes, 80% of the actual yearly cost will be funded using AVA from the Community Pool, with the remaining 20% funded by the Ecosystem Incentives and/or Ecosystem Growth Wallet.

Proposed Mechanics:

The minimum lock-up amount for all membership tiers is 250 AVA, with different maximum caps for each tier.

Smart Steel

• Maximum Lock-up Cap: 10,000 AVA
• AVA+ Rewards: 5% of locked AVA per year

Smart Bronze

• Maximum Lock-up Cap: 20,000 AVA
• AVA+ Rewards: 5% of locked AVA per year

Smart Silver

• Maximum Lock-up Cap: 50,000 AVA
• AVA+ Rewards: 5% of locked AVA per year

Smart Gold

• Maximum Lock-up Cap: 80,000 AVA
• AVA+ Rewards: 5% of locked AVA per year

**Smart Platinum **

• Maximum Lock-up Cap: 100,000 AVA
• AVA+ Rewards: 5% of locked AVA per year

Smart Diamond

• Maximum Lock-up Cap: 200,000 AVA
• AVA+ Rewards: 6% of locked AVA per year
• NFT Boost: +0.3% per year per additional NFT (up to 5 extra NFTs). Max total AVA+ Rewards with NFT Boost is 7.5% per year.

Important Conditions

Claimability:

• AVA+ Rewards will be made claimable at the end of each lock-up period.

Early Withdrawal:

• AVA+ Rewards shall be forfeited if the additional AVA locked-up for AVA+ Rewards and/or the AVA locked-up for the Smart Program is withdrawn before the conclusion of the full lock-up period. However, there is no penalty on the initial amount of locked AVA.

• Maximum Overall Cap: 10,000,000 AVA (to be reviewed and adjusted by the AVA Foundation and AVA Community based on demand).

Proposed Flow:

1. Ensure you have an active Smart Steel–Diamond membership
2. Go to the ‘AVA+ Rewards’ tab in the AVA Smart Program area of your Travala account
3. Input the self-custody wallet address you will use for AVA+ Rewards
4. Click a button that redirects you to the ‘AVA+ Rewards’ page on the AVA Foundation website
5. Connect your self-custody wallet for verification
6. Enter the amount of AVA you would like to lock for the duration of the lock-up period
7. Sign the transaction in your wallet
8. After the lock-up period ends, claim your initial AVA lock-up amount and AVA+ Rewards via your wallet on the AVA Foundation site

Expected Benefits:

• Increase the total value locked of AVA
• Boost the demand for the AVA token
• Grow the number of Smart member registrations
• Reduce the amount of AVA on third-party platforms
• Initiate the first phase of the AVA Open Loyalty Protocol

Funding

• 80% from Community Pool
• 20% from the Ecosystem Incentives and/or Ecosystem Growth Wallet

Estimated Yearly Cost:

• 600,000 AVA (based on a Maximum Overall Cap of 10,000,000 AVA at an average of 6% AVA+ Rewards per year).

Voting

• This proposal is a simple yes or no vote
• A quorum of 1 million votes is needed
• At least 51% 'yes' votes to pass

Voting Weight

• 1 AVA = 1 Vote (Ethereum and BSC networks)
• 1 Travel Tiger NFT = 7,000 Votes

Timeline

• If the vote passes, this initiative is expected to be live in Q3 2025.