KIP-84: Develop Referral Program

Simple Summary

Add a referral program that modifies the existing trading rewards calculations, allowing Kwenta traders to add to their own rewards_score by holding an NFT which represents referring a trader, being referred, or participating in promotions directed by the Grants Council.

To prevent self-referrals or Sybil attacks and incentivize wallets participating in the program to stake $KWENTA tokens, the NFTs representing referrals will have a tiered impact on the rewards_score of a wallet based on a combination of factors, including the $KWENTA balance of the issuing wallet.

Abstract

This proposal aims to introduce a referral program to Kwenta, enhancing the trading rewards system and incentivizing traders to refer new users. The referral program will utilize NFTs to represent referrals, with different tiers and impact on rewards_score based on factors such as the $KWENTA balance of the issuing wallet. By implementing the referral program, Kwenta aims to increase user acquisition and provide additional value to $KWENTA stakers and traders.

Motivation

Referral programs are a common marketing strategy for both centralized and decentralized exchanges, offering advantages such as permissionless onboarding, low overhead, and performance-based incentives. By introducing a referral program tied to the rewards_score variable described in KIP-3 and the $KWENTA staking mechanism, Kwenta can leverage a clearly defined source of funding for user acquisition while providing additional value to $KWENTA stakers and traders.

The referral program aims to utilize the existing $KWENTA trading rewards mechanism to reward participants. Additionally, by storing Issuer and Recipient data on-chain, Kwenta can target Issuer wallets with future rewards sources from Kwenta or partner protocols, creating incentives for immediate referral participation.

Specification

For more information, visit the: Kwenta State Log