[DIP-015] veDFX Kickoff Contest

Overview

On (or around) October 18, DFX will launch veDFX. (Surprise!) This is a major event for the protocol, as it introduces a community-led effort to add utility to the DFX token and to incentivize farmers to put their DFX to work, as opposed to simply farming and selling. You can view the original proposal here.

This proposal would hold veDFX Kickoff Contests to celebrate the launch of veDFX and also add an increased incentive for early adoption of veDFX.

This proposal would use 10,000 DFX from the DFX Outreach Wallet to put up as the prize pool for the contest.

Breakdown and Rules of the contest:

Duration:

The contest would last until 11:59 PM (EST) on November 30, 2022.

How do I win:

There will be three contests.

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CONTEST ONE

• Most veDFX – 5000 DFX prize

The wallet with the most veDFX on November 30, 2022 will win 5000 DFX

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CONTEST TWO

• Random draw – 4000 DFX prize

Each wallet that holds at least 1000 veDFX on November 30, 2022 will be entered into the Contest Two random draw.

The wallet randomly selected will receive 4000 DFX.

Tips & Examples:

• The more veDFX in your wallet, the more chances you have to win

• For every 1000 veDFX in a wallet, that wallet will receive an entry into the random draw

Example 1 – If there are 4,000 veDFX in Wallet X, Wallet X would receive 4 entries into the random draw.

Example 2 – If there are 12,950 veDFX in Wallet Y, Wallet Y would receive 12 entries into the random draw.

Note: The winner of Contest 1 will not be eligible to enter the random draw for Contest 2

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CONTEST THREE

• Random Draw – 1000 DFX prize

• Any wallet that holds veDFX on November 30, 2022 will be entered into a random drawing

The wallet randomly drawn will receive 1000 DFX

Note: The winner of Contest 1 and/or Contest 2 will not be eligible to enter the random draw for Contest 3.

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How will I know if I win?

• On December 1st, DFX will publish the winner of Contest One, and also publish a list of all eligible wallets for the random drawings for Contest Two and Contest Three. On December 7, 2022 at 8:00 pm EST, Coty Kuhn will provide a live video stream where everyone can watch the random drawings. We will use Picker Wheel to randomly select the winning wallet for each contest.

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Motivation

veDFX is the DFX DAO’s first big move to bring additional utility to the DFX token. The implementation should be celebrated.

• Adoption of veDFX is important for the future of the protocol.

• By hosting and funding a kickoff contest, we incentivize early adoption of veDFX and also incentivize newcomers, and those on the fence, to consider minting veDFX to join the contests.

• By hosting and funding a kickoff contest, we will attract more users to the protocol. These cannot just be passive users, as the contests require a minimum of 1000 veDFX to participate. This isn’t a “buy, wait for the contest, and then sell” situation. To obtain veDFX, participants must lock DFX for a substantial period of time.

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Specifications

General Information on veDFX: https://docs.dfx.finance/products/vedfx veDFX lock details: https://docs.dfx.finance/products/vedfx/lock-details

Pros:

• Increase the amount of DFX that is locked.

• Increase early adoption of veDFX.

• Give the community something to share with other communities as we try to get more holders involved.

• Incentivize longer staking by rewarding wallets with more veDFX.

• Engage the community in a contest. Everyone love contests!

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Cons

• We spend 10,000 DFX from the Outreach Wallet

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Summary

• veDFX is going to launch on October 18th

• We should celebrate the launch and incentivize adoption by hosting and funding Kickoff Contests, using 10,000 DFX from the Outreach Wallet

• We should have three contests, weighted toward higher prizes for those who hold more veDFX