[GIP-4] GYFI Incentives, Marketing and SPIN

Background/motivation

This proposal aims to secure a GYFI budget to incentivize Gyroscope adoption. This will enable the Gyroscope DAO to build on the momentum from the imminent public Token Generation Event, focus attention on Gyroscope’s new strategic focus on Volatile Pair pools, and provide an alternative incentive scheme to SPIN. This proposal also seeks an additional GYFI budget for marketing.

Summary of proposal

1. It is proposed that an initial GYFI budget of 275 000 GYFI (2.01% of GYFI supply) be allocated to be used to incentivize liquidity.
2. It is proposed that a GYFI budget of 25 000 GYFI (0.18% of GYFI supply) be allocated to fund marketing campaigns and onboarding new users.
3. It is proposed that an additional 100m SPIN is made available for ongoing liquidity incentivization.

Post-public-TGE Incentive Strategy: Following Gyroscope’s Token Generation Event (TGE) the GYFI token will have a market price, reducing uncertainty and enhancing the ability to attract new users. Given the high-profile nature of the TGE, it is crucial to build on its momentum by launching an incentives campaign that extends the benefits of the SPIN scheme to both existing and new users. Note, this may take the form of direct incentives, aka liquidity mining, or a second SPIN phase.

New Focus on Volatile Pair Pools: Gyroscope will also increasingly focus on Volatile Pair pools. These pools have the potential to generate substantial protocol revenue. The stablecoin GYD will play a complementary role as a hub-and-spoke asset for stablecoin; increasing capital efficiency, internalizing stablecoin yield, and growing alongside the pools.

Integrated Growth and Marketing Approach: Growth campaigns yield the best results when supported by marketing. As such, any growth initiatives should be accompanied by additional marketing efforts to clearly communicate Gyroscope’s product offering. This would expand a previously approved marketing budget as per [GIP-3]. The allocated budget sets the upper bound on what can be spent on the previously described purposes. If the budget is not fully allocated by the end of Q2 2025 (30.06.2025) any remaining funds are to be returned to the Gyroscope DAO.

Feedback from Step 1, which much include an explanation of how this was incorporated into the proposal.

During the consultation, there were a few areas of feedback:

• The allocations were broadly supported for both the liquidity mining program and the boost to the marketing budget.
• It was raised that there must be a reporting mechanism to report on DAO progress / matters and token disbursements. This will certainly be undertaken and a space for DAO reporting has been created on the forum.

Risk assessment

Not relevant.