Social EGP24 - EverScale Proposal

Abstract

This proposal seeks Everclear DAO's approval to allocate 10% of the total supply (100M CLEAR) to onboard key ecosystem partners---such as solvers, rebalancers, market-makers, and intent-bridges---as collective owners and volume drivers of the protocol.

The program will distribute 4.2M CLEAR monthly over 24 months, starting in March 2025, with all tokens subject to a 12-month linear unlock to ensure long-term alignment with Everclear.

This initiative aims to increase monthly rebalancing volume to $1B and ****allow the Everclear protocol to achieve larger economies of scale, delivering significant rebalancing cost savings for the industry. The program will launch with an initial 3-month "Season 1" to evaluate early impact.

Motivation & Rationale

Everclear is designed to solve liquidity fragmentation across intent solvers, market makers, centralized exchanges (CEXs), bridges, and institutional actors by operating as a Clearing Layer that nets off interchain flows.

For this model to succeed, Everclear must reach escape velocity---a state where the protocol has sufficient bi-directional volume to maximize netting and minimize rebalancing costs. It is estimated that at $100B+ in annual volume, rebalancing costs can drop to near zero.

This proposal aims to establish Everclear as a shared public good for the industry by incentivizing top ecosystem participants---such as solvers, rebalancers, market-makers, and intent bridges--- to become collective owners and users, driving significant volume and making rebalancing more efficient for all participants.

Key Objectives

1. Accelerating Industry-Wide Cost Reductions The current interoperability market is fragmented, with each bridge or liquidity provider subsidizing operations to remain competitive. Everclear's design as a Clearing Layer introduces netting efficiencies that lower transaction costs for all participants.

2. Solving the Cold Start Problem for Liquidity Networks As a two-sided marketplace, Everclear requires significant initial liquidity commitments to reach a self-sustaining state. This grant program serves as an incentive to bootstrap bi-directional volume, ensuring early adopters are rewarded for participation.

Why a Grant Program?

• Onboard top-tier ecosystem participants as both collective owners and active users.
• Accelerate bi-directional volume for protocol sustainability.
• Align incentives with long-term participation through the 12-month unlock mechanism.

Specification

Grant Details

1. Total Allocation: 100M CLEAR (10% of total supply)
2. Distribution Timeline: Over 24 months beginning March 2025
3. Monthly Grant Pool: 4.2M CLEAR
4. Participation & Qualification Criteria:
   • Participants must commit to a volume target and achieve at least 70% of it to qualify for rewards.
   • Rewards are distributed proportionally based on each participant's share of total protocol volume.
5. Unlock Mechanism:
   • All tokens are subject to a 12-month linear unlock to ensure long-term alignment with Everclear.

Example of Grant Payouts

• Suppose Everclear onboards three major partners, each committing to $300M in monthly volume.
• If Partner A commits $100M monthly and the total protocol volume reaches $300M, Partner A's share is 33% of the rewards pool.
• Calculation:
  • Total rewards per month: 4.2M CLEAR
  • Partner A's share: 33% of 4.2M CLEAR = ~1.4M CLEAR per month
  • Total earnings over 3 months: ~4.2M CLEAR
  • All tokens are subject to the 12-month linear unlock.

Expected Early Participants

Potential protocol partners include:

• Rhino.fi
• Synapse
• Router Protocol
• Puffer

Additional participants may be onboarded as the program scales.

Borg Structure and Governance

Grants Program Scope

The Everclear Grants BORG is designed to incentivize key protocol volume drivers while allowing flexibility for other high-impact initiatives.

The grant scope includes:

• Incentives for volume drivers (market makers, solvers, bridges).
• Software & systems R&D, marketing, and ecosystem expansion.
• Governance & coordination initiatives that provide long-term benefits to Everclear users.

Budges Considerations

• Total allocation: 100M CLEAR total
• One-time costs:
  • $26K for Cayman Islands legal counsel (entity formation, KYC, registration).
  • $70K for MetaLeX services.
• Recurring costs:
  • $11.5K per year for Cayman Islands entity maintenance (covered by the BORG operational budget).

Note: One-time costs and recurring costs will be funded from the 100 million CLEAR grant

BORG Multisig and Governance

4/6 multisig governance model with:

3 Everclear Foundation members:

• Arjun - Founder
• Max K - Head of FinOps
• Dima - Foundation CEO

3 DAO delegates and/or GTF members:

• Ministro del dólar/SEEDGov - GTF & Delegate
• Facu - ESC Member & Delegate
• Stefan - ESC Member & Delegate

At least one non-Foundation signer is required per transaction.

1 Foundation Director will be appointed as the BORG entity Director.

Implementation Plan

1. BORG Formal Vote - Done a. Formal Vote to authorize MetaLex to create the entity and the BORG b. This should be done while EverScale RFC is in discussion so grant funds can land to the BORG upon execution if the proposal passes. If it does not pass BORG can still be utilized for Grants with a different budget.
2. EverScale RFC and the Formal Vote - Current step

Please note that this proposal is classified as Social rather than Executable, as it seeks the DAO’s approval for the Security Council to carry out the necessary transactions to allocate 100M CLEAR to the program.

The motivations behind this are:

• to be able to conduct test transactions prior to moving a significant amount of funds out of the treasury,
• and to make sure all smart contracts governing a BORg are fully tested prior to BORG being funded

3. Monitoring & Transparency
   • Partner contributions will be regularly evaluated, ensuring compliance with volume commitments.
   • Monthly transparency reports will be published for DAO oversight.

Overall Cost

• Grant Allocation: 100M CLEAR (10% of total supply).

Additional Information

This proposal is very ambitious and designed to propel Everclear into a new phase of growth.

• Long-Term Impact & Sustainability
  This program is designed to make participating partners long-term users and protocol advocates, strengthening Everclear's market position and economic sustainability.
• Treasury Sustainability: The Everclear DAO will retain 7% of the total supply for future initiatives. If additional funding is needed, governance proposals can consider inflation mechanisms or alternative funding sources.
• Token Emissions Control: The 12-month unlock period prevents abrupt liquidity shocks, ensuring participants remain aligned with Everclear's growth.
• Mitigating Risk of Low Participation: If fewer participants onboard than expected, funds will be returned to the DAO, preventing inefficient token distribution.