Should Cryptonauts get a multiplier on their associated locked XIO towards earning future tokens and governance voting weights?

Proposed multipliers:

• Tier3: 1.05x multiplier
• Tier2: 1.1x multiplier
• Tier1: 1.2x multiplier

The benefits this brings is:

• More incentives to own a Cryptonaut, and higher tiers have better incentives, encouraging ownership of higher tiers over lower tiers
• This could increase overall Cryptonaut sales, which will increase the stablecoins and XIO token buy backs, a net positive for all XIO token holders.
• A way to earn a multiplier on XIO tokens without being an LP
• Locking up more XIO tokens means less tokens readily available to be sold, potentially less downward price pressure

The downside this can have:

• Dilution towards other XIO holders that do not have a Cryptonaut or have not chosen to add more XIO tokens to their Cryptonaut’s vault.

Multipliers bonuses will apply to:

• Governance voting on Snapshot
• Earning future tokens from all Blockzero snapshots

How this multiplier will work:

• This multiplier would only apply to the XIO tokens that have been deposited into the Cryptonaut vault. The only way to withdraw those XIO tokens is to permanently burn the Cryptonaut. In theory, most people will not want to burn their Tier1 or Tier2 Cryptonaut due to exclusivity, which is another reason these Tiers have a higher multiplier, incentivizing lock ups of tokens that are more likely to never be unlocked.

If this proposal passes, this multiplier would retroactively apply to the date any Cryptonaut has been purchased (Tier 1 and 2) or minted (Tier 3) prior to this proposal passing. This means Tier 1 and 2 Cryptonauts would only start earning once purchased. This also means Tier 3 Cryptonauts will start earning as soon as they are minted.

How this would impact the existing XIO that comes preloaded in the vaults of all Cryptonauts

• 1000x Tier3s each have 2,500 XIO, @ 1.05x multiplier, would give each 2,625 weight
• 100x Tier2s each have 25,000 XIO, @ 1.10x multiplier, would give each 27,500 weight
• 10x Tier1s each have 250,000 XIO, @ 1.20x multiplier, would give each 300,000 weight

Dilution of XIO holders vs Cryptonaut Vault XIO holders multipliers:

• Because all Cryptonauts come preloaded with XIO in their vaults, if all 10x Tier1, 100x Tier2, and 1000x Tier3 Cryptonauts were purchased and minted as of today (they won’t be, this is an extreme example), and using today’s XIO supply and total XIO in the XLP, the dilution impact this would have is approximately 1.2% towards all FlashV3 tokens earned in November, and 1.3% dilution towards all KIND tokens earned over the next year.
• For every additional 1million XIO tokens that are deposited into Tier1s vaults with a x1.2 multiplier, as a worst case scenario of possible dilution, this would cause an increase of dilution by approximately another 0.5%, so 10m XIO deposited would be another 5% dilution.
• For more details about dilution math, please see this publicly available sheet: https://docs.google.com/spreadsheets/d/1mxSwY6duEKWykUZI_olSdBe_XCRmhSylpMwtsSmqsbA/edit#gid=0

To discuss further with community, or if you have any questions, please visit the Blockzero discord channel #proposals https://discord.gg/6YWcxpbVUU