GIP-0003 Refinement of the Way in Which the ETH Staking Pool is Allocated

Introduction

After analysis from the GIP-0001 design stage, some improvements to the way the ETH staking pool rewards are allocated have been identified. This proposal outlines a revised method which takes into account the views of the team and the ease of implementation. It is not intended to alter, or replace, the spirit, or positive aspects of GIP-0001, such as the implementation of DAs and staking, but purely add a refinement to the way the ETH Staking pool should be allocated.

Proposal Background

In GIP-0001 the ETH Staking pool is described as follows

“2) “ETH Reward pool

Intended to drive value in the $GENART token, which is the main incentive for the team and its partners. Members who combine their memberships with $GENART tokens in their stake are eligible for ETH rewards which are distributed after each drop.

Conditions: Amount of ETH spent on minting the drop $GENART + Memberships stake Must be staked during the drop’s block range (timeframe)

Rewards: 12.5% of mint proceeds”

Proposal

a) There will be a threshold condition of 1 membership that needs to be staked

b) Calculate shares of the ETH reward pool based on tokens and memberships with following formula: TOTAL_SHARE = ((5 x TOKENS_STAKED / TOTAL_TOKENS_STAKED) + (MEMBERSHIPS_STAKED/TOTAL_MEMBERSHIPS_STAKED)) / 6

c) The calculation will be proportionally weighted according to the time actually staked during the reward period so as to incentivise members who stake for the whole period (usually 90 days).

d) Gold memberships shall count as 5 standard memberships for the purposes of this calculation.

e) The rewards for a drop will be available to be withdrawn at the end of the reward period.

Example

An example of how this will work has been created here - https://docs.google.com/spreadsheets/d/1ZQz6bSS0Rnv2lufM5qBucIEaKfgicZwmuyO4pQatiyQ/edit#gid=429323264

This also shows how the staking period weighting will be calculated.

Development cost

This proposal is consistent with implementation that has been coded at this stage. Although there are some changes to allow for membership weighting it is believed this will require minimal further explicit development costs and/or time.

Vote Options

Voting “For” means that you support the proposal and the calculation methodology as shown.

Voting “Against” means that you would like the Calculation explained in GIP-0001 to be implemented as originally formulated. This was TOTAL_SHARE = ((BLOCKS_STAKED/TOTAL_BLOCKS_STAKED)+(AMOUNT_SPENT_ON_DROP/TOTAL_SPENT_ON_DROP)+(TOKENS_STAKED/TOTAL_TOKENS_STAKED)+(MEMBERSHIPS_STAKED/TOTAL_MEMBERSHIPS_STAKED))/4

Voting “Abstain” means that you want to record that you do not have a preference for one of the options given.

Glossary

TOTAL_SHARE = Share of the pool generated by a drop that an individual account will receive. BLOCKS_STAKED = Number of blocks that an account staked for during the drop reward period (usually 90 days but can be altered). TOTAL_BLOCKS_STAKED = Sum of the number of blocks all accounts staked for during the drop reward period (usually 90 days but can be altered). AMOUNT_SPENT_ON_DROP = Amount of ETH that the account spent on the associated drop. TOTAL_SPENT_ON_DROP = Sum of the amount of ETH spent by all accounts on minting the associated drop. TOKENS_STAKED = The amount of $GENART tokens an account has staked. TOTAL_TOKENS_STAKED = The amount of $GENART tokens all accounts have staked. MEMBERSHIPS_STAKED = The amount of memberships that an account has staked (1 Gold = 5 Standard Memberships) TOTAL_MEMBERSHIPS_STAKED = The amount of memberships that all accounts have staked (1 Gold = 5 Standard Memberships)