GCP #9: Referral Program

Summary/Proposal

To promote the growth and expansion of the GCR Community, we propose implementing a referral program, whereby existing members can reduce the carry for deals through successful referrals.

Motivation

Due to the confidential nature of the deals we engage in at GCR, the active promotion of these deals is not feasible. As a result, an effective method to circulate information about both GCR and the exclusive deals we offer is through referrals. It is imperative that we incentivize this behavior among our existing members, motivating them to participate in expanding the GCR Community.

Specification

Members can choose to refer people to GCR to reduce the carry that they are charged on a deal that they participate in.

Link to calculate: GCR Referrals

Example 1

(Investment Amount: 5,000; Carry Reduction: 2%)

GCR Referrals_eg1

In this example, a GCR member intends to invest $5,000 in a deal and desires a 2% carry reduction. To qualify for this reduction, the member must refer either two individuals with Gold memberships or one person with a Gold Pro membership.

Example 2

(Investment Amount: 10,000; Carry Reduction: 4%)

In this example, a GCR member intends to invest $10,000 in a deal and desires a 4% carry reduction. To qualify for this reduction, the member must refer either four individuals with Gold memberships or two individuals with a Gold Pro membership.

GCR Referrals_eg2

Example 3

(Investment Amount: 15,000; Carry Reduction: 2%)

In this example, a GCR member intends to invest $15,000 in a deal and desires a 2% carry reduction. To qualify for this reduction, the member must refer either four individuals with Gold memberships or two individuals with a Gold Pro membership.

GCR Referrals_eg3

It's important to note that the referred individuals need to make a successful minimum investment in any GCR deal for the referral to be eligible for the carry reduction.

Steps for Carry Reduction via the Referral Program:

1. Participants can reduce their carry by 1% to 4% max per deal, in 1% increments, similar to GCP #7 - Burn $GCR Tokens for Carry Reduction.
2. Participants will need to enter their desired investment amount and carry reduction in this sheet GCR Referrals to determine the # of referrals required.
3. Participants will have to fill out this form to submit their referral entry.

The GCR Core Team will determine the validity of each entry and whether it has already been utilized for carry reduction.

FAQ

1. Why is there a need for a referral program?

Having more members in the GCR Community through a referral program will increase the likelihood of deals getting filled and will position us to secure more deals.

2. What's the max carry a member can reduce with referrals + burn?

The maximum carry reduction percentage a member can receive per deal is 4%, whether through the referral program, the burn program, or a combination of both.

E.g. if a member has made enough # of referrals to qualify for a 4% carry reduction in a deal, they would no longer have the option to additionally decrease their carry by utilizing GCR tokens (through other programs), and vice versa.

3. When does a member’s carry reduction through burn or referral get finalized?

The carry percentage for a deal gets finalized at the time of investing in a deal.

Vote:

The ‘Single choice voting’ Snapshot voting system will be used for this proposal, meaning each voter must hold at least 1 GCR token to be able to vote and may select only one choice:

Yes - Approve the proposal No - Decline the proposal