KIP-47: Use Reclaimed Trade Rewards to hold Monthly Trade Contests

Summary

Use a small percent from the reclaimed Trade Rewards allocation to hold regular contests.

Abstract

KIP-43 reduced Trade Rewards from 20% of inflation to 5%. This proposal reallocates some of those reclaimed tokens as a prize for a reoccuring trade contest.

Motivation

Trader acquisition and retention are critical targets for the next 12 months. Currently, there is very little to draw new users to the platform except its decentralized nature. We consistently see dramatically increased trade volumes during contests. A regular contest for a small prize could potentially generate reoccuring visits to the site, increasing likelihood that users will trade and stay. These tokens were already allocated as trade rewards, so using them to generate trade volume is an appropriate usage.

Specification

Read full details here: https://kips.kwenta.io/kips/kip-47/