Flashback budget distribution proposal

Overview

The recently approved tokenomics proposal amendment (https://snapshot.org/#/blockzerolabs.eth/proposal/0x79fdf6b5712d38c9fef5adb79ab9f3c25688e238085c97e1f0f2d3aaa719adaa) caused a change in absolute and percentage allocations of the token distribution. Consequently, the token budget for Flashback staking is smaller than the community airdrop allocation. For this reason, the originally proposed maximum Flashback staking APY of 100% can not be guaranteed for 100% of the community airdrop. Instead, an alternative allocation of the fixed Flashback budget of 18,504,723 FLASH tokens is required.

Problem

The original proposal allocated 23,244,575 FLASH to both the community airdrop and Flashback staking which would have allowed a maximum APY of 100% and gave every community member the option to participate in Flashback staking. The primary purpose of Flashback staking is to reward community members for ongoing support of the project. The amendment has resulted in the community airdrop increasing to 27,984,427 FLASH and the Flashback staking allocation to reduce to 18,504,723 FLASH. This means we can no longer offer both 1) an APY of 100% for the Flashback staking and 2) guarantee 100% of the community airdrop to be able to participate in the Flashback staking.

Solution

To adjust for the new supply distribution, the Flashback budget must be changed accordingly.

There are two solutions that cover one of the two features of the original proposal (full community airdrop coverage or 100% APY). A third solution is presented as a possible middle ground if the community desires a more balanced approach to the Flashback staking distribution.

Solution 1: Reduce the maximum Flashback APY to 66.13% but keep 100% community airdrop coverage. This means that theoretically every community member can stake their airdrop for a maximum reward of 66.13% additional FLASH tokens.

Solution 2: Keep the maximum Flashback APY at 100% but reduce community airdrop coverage to 66.13%. This means that 100% APY staking rewards for Flashbacks are still available but on a first come, first served basis until the budget is depleted.

Solution 3: Reduce the maximum Flashback APY to 80% and reduce community airdrop coverage to 82.66%. This is a middle ground of the two extreme options to balance the availability and attractivity of Flashback staking.