BLIP2: Tokenholder Veto

BLIP-2 has been approved by the Progress Council. Tokenholders now have the chance to veto BLIP-2 in accordance with Section 6 of the Governance Bylaws. If you agree with the proposal, no further action is required; however, if not, you may choose to veto. Proposals that meet the quorum requirements and are successfully vetoed will not be implemented.

https://snapshot.org/#/pc.blastfoundation.eth/proposal/0xf54533c9f49bf8619d4c22b0a8b31b04ebfb64c5598a9ec4713f3a27ca4d41fc

Proposal Title: Recommendation to Blast Foundation Regarding Use of the Points Program to Create Aligned Incentives

Proposal Type: The Progress Council understands that this BLIP does not fall squarely within the enumerated categories in [Section 4] of the Governance Bylaws; however, the Governance Bylaws provide that the Progress Council is tasked with serving as a steward for the Tokenholders. As such, the Progress Council feels that the Foundation should implement mechanics that incentivize individuals to hold $BLAST and to meaningfully participate in the Foundation’s governance processes. As such, it’s important for the Blast Foundation to consider distributing points to $BLAST tokenholders.

Executive Summary: The Blast Foundation tweeted 25 that next week they are providing additional details on Phase 2 Rewards. Ahead of distributing details, the Progress Council wanted to share its thoughts on finding ways to create a more engaged holder base through the distribution of points to holders of the $BLAST token.

We recommend that to align incentives across the Blast ecosystem, the Blast Foundation should consider distributing points to $BLAST holders. As the Blast Foundation continues to build out the Points/Gold program, it’s important to consider eligible tokens other than ETH or USDB.

$BLAST governs pieces of the protocol, and encouraging individuals to hold it will create an engaged tokenholder base. By having a more engaged base, the Foundation’s governance will be more robust.

Motivation: The Progress Council wishes to create an engaged and robust tokenholder base that will drive value to the Foundation’s governance process. By distributing points to $BLAST holders, Blast ecosystem participants are incentivized to hold $BLAST rather than selling for other assets that earn points (i.e., USDB and ETH). The $BLAST holders can then use their tokens to propose or vote on governance proposals.

Proposal Details: The Blast Foundation’s partnership with Arcade Research (“Arcade”) allows certain Blast ecosystem participants to earn points via Arcade’s web application at app.blast.io 35 (the “Blast App”). The Progress Council suggests that the Blast Foundation works with Arcade to implement points for $BLAST holders through the Blast App.

Implementation: The Progress Council recommends that the Blast Foundation consider an immediate implementation after the expiration of the tokenholder veto period.

Estimated Timeline

June 28 - Post Progress Council BLIP on the forum

July 1 - Progress Council Votes on Snapshot

July 1 - Foundation begins technical implementations with Arcade

July 1 - Foundation opens Snapshot veto period

July 8 - Veto window closes in accordance with [Section 6(b)] of the Governance Bylaws

July 15 - Foundation allows $BLAST holders to earn points through the Blast App

Associated Costs: There are no costs associated with this proposal. Any implementation costs associated with the Blast App will be borne by Arcade, and not the Blast Foundation.