Should we transition from GIVbacks V1 to GIVbacks V2 "the raffle"?

This is a proposal to transition our legacy GIVbacks program to V2, to better meet the needs of our community.

Instead of distributing small amounts of GIV corresponding to each donation over $5, each donation will count as an entry into a GIVbacks raffle. Every GIVbacks round, 5 donors will "win" GIV prizes.

How it will work:

1. Raffle entries

Each donation made in a GIVbacks round will have a certain number of "raffle entires" associated with it. The number of raffle entries is the product of the USD value of the donation and the "GIVbacks factor" of the GIVbacks eligible project being donated to.

Example 1: If a donor donated 100 USDC to a project with a 79% GIVbacks factor, they would have 100*0.79 = 79 raffle entries.

2. Size of the Prize Pool

The size of the prize pool depends on the USD donated made in the round. The more funds donated, the bigger the prize pool, up to a maximum of 1,000,000 GIV per round.

The prize pool can be calculated using the number of raffle entires and the USD value of GIV at the time.

Example 2: If there are 3,000 total raffle entries in GIVbacks round, and the price of GIV is $0.005. The size of the prize pool will be 3000/0.005 = 600,000 GIV

Example 3: If there were 7,000 total raffle entires, and the price of GIV were $0.005: 7000/0.005=1,400,000 which is above 1 million GIV. So the price pool would be 1,000,000 GIV for that round.

3. Selecting the GIVbacks recipients

• After the GIVbacks round ends, 5 donations will be selected randomly (with each donation having a relative weight based on its raffle entires).
• These donations will be checked to ensure no recirculation of funds with projects, and if they pass, those donors will be the winners.
• Each address can only win 1 prize per GIVbacks round.
• The winners will get the prizes in order of selection, so, the first randomly selected winner will get the biggest prize, the second the second, etc.

4. Prize sizes

1st place: 50% of the GIV pool 2nd place: 25% of the GIV pool 3rd place: 15% of the GIV pool 4th places & 5th places: 5% of the GIV pool each

5. Announcement & Distribution

Winners will be announced biweekly through Twitter Spaces, and then their winnings will be added to their GIVstreams within 1 week. GIV will need to be claimed by the users.

Things that won’t change

• The maximum GIVbacks pool per round will be 1 million GIV and the amount distributed will be less if there are not many donations to verified projects.
• GIVbacks rounds will still happen continuously - as soon as one round ends, the next begins
• GIVbacks rounds will last 2 weeks and will be numbered the same.
• GIVbacks will still need to be “claimed”, and they will be subject to the GIVstream.
• GIVpower users still affect which projects offer the most incentives to donors, because the top-booted projects give the donor a greater likelihood of winning.
• GIVpower parameters stay the same.

This was tested as experiment over GIvbacks rounds 71-73. For results of the experiment and further discussion, please refer to the forum post linked.