[GIP1] - Guardian Validator Program (Draft)

Voting ended about 3 years agoSucceeded

Author: IamTroll

Summary

The Guardian Validator Program will match rewards that CG has accumulated from providing nodes on other networks. These rewards will be used to buy CGG, then locked in a DAO controlled fund. Next an equal amount of CGG from the DAO Treasury will be matched to fuel voting and staking incentives. You would need a minimum of 50k CGG and must vote within the period to receive staking rewards.

Motivation

ChainGuardians has always focused on collaborating and supporting quality projects in the crypto space. This has pushed CG to provide nodes for multiple networks. These nodes secure, validate and maintain networks, and are rewarded for doing so. CG has run nodes for Avax, Elrond, Eth and was among the first projects to provide one for Polygon.

There has been recent agreement on how to use these rewards, which have been untouched up to this point. The current amount of Polygon rewards accumulated by CG stands at 153k MATIC. The first phase of the program begins with selling 50,000 MATIC for CGG and locking it in a DAO fund.

The objective of Guardian Validator rewards will differ from the Community Fund and CGC conversion rewards. It will have a multipronged effect:

Hodlers and buyers of CGG aiming to stake will increase market activity.
Users stake CGG securing and stabilizing the ecosystem.
Polygon rewards used to buy CGG creating positive inflows.
Locking CGG from Polygon rewards adds to stability and support of the market.
Ecosystem funds used for staking rewards provide incentive to current and new users.

The Guardian Validator program would help offset current reward incentives in which CGG is sold/swapped for stables. It should also help increase DAO activity by requiring 3 votes per staking period.

Specifications

The 50,000 Matic will be sold for CGG and locked in a wallet controlled by the DAO. This can be voted on or even burned at a later time. The amount of CGG locked will be matched with CGG from the DAO Treasury. These matched ecosystem funds will be used as the incentive for Guardian Validators through a staking pool. The staking pool will use the same UI and framework as the NFT staking site, avoiding the need to re-develop a system.

Rewards distribution would be per block for a period of 3 months. No auto-compounding. The staking will take place on the Polygon network and will be located on the Staking section of the ChainGuardian site.

The Guardian Validator pools would be active for 3 months. Users would then need to unstake and a new pool could be deployed. Users must vote on at least 3 proposals to be whitelisted for the next staking period. This would average out to 1 proposal a month. There is also the capability to set the min and max amount a user can stake.

To receive Guardian Validator rewards users would be required to stake a minimum of 50k CGG and must participate in one 3 DAO votes per staking period.

By staking as a Guardian Validator you will help in stabilizing our network and by default secure other networks that CG validates.

Notes

Though CG has decided to put these rewards to use, a portion must go towards node maintenance/dev, admin, smart contract, etc before hand.
If this phase shows success then further locking of node rewards and utilization of matched funds could be used.
An extended date after approval of the proposal will give users enough time to horde some CGG and not miss out on initial rewards.

Outcomes

This is meant as a soft poll not as the official vote to initiate the specifications of this proposal.

-Voting “Proceed” will allow this draft to continue to the final Proposal phase. After 4 days of a favorable amount of reviews it can go for an official 7 day vote.

-Voting “Reject” will stop this proposal from proceeding to the final Proposal phase. After another period of 3 days in the Draft phase it can be rewritten and submitted once more.