PGM-46: Renew Delegates Incentives Program

Authors: @Dydymoon & @AkgEmilio

Summary This post aims to revise & renew the Delegates Incentives Program from January to April 2024, initially approved from September to December 2023.

Context Reminder of incentivization eligibility criteria:

Governance participation: Initially 80%, update to minimum 90% Obligation of transparency: Explain voting rationale Delegation Threshold: Minimum 10 000 hPAL delegated from 2 stakeholders Recognised Delegates have to self-report on a monthly basis in this thread in order to get their incentives Rationale This proposal aims to evaluate the Paladin delegates status & spending over the past months, as well as propose to revise & renew this program for an additional 4 months.

The two previous renewals were defining the budget based on the price of PAL at the period start, which is not ideal considering its strong volatility. After the analysis, I’ll share a few options below to update this distribution method.

Recap of the past period (September to December) Max budget approved : 200 000 PAL

5 eligible delegates: Dydymoon; Kene; Bozo; Alex; 0xTekGrinder

Breakdown of actual spendings

955×206 8.96 KB This represents 36,7% of the max spending approved.

Overview of the past period Despite not all delegates being active during the full period (some actually joined in the middle and others didn’t self-report), we’ve reached the goal of 5 active delegates mentioned in PGM-33 & 40.

According to Boardroom, 7 addresses have 10k+ PAL from 2+ delegators. However, only 5 of them fill all eligibility criteria including participation rate according to Karma & Boardroom.

Analytics of defined metrics

956×406 11.7 KB Options to update PAL incentives distribution for delegates I believe the delegation rewards should be based on $ value but paid in PAL for now, & would say we have a few options to update this program.

Delegation rewards still based on delegation weight This option would require to define a compensation amount in USD, and probably update the current formula. Rewards would still be paid in PAL.

If the base compensation is calculated from the value of the first program, the new formula to be used should be the following one:

f(x) = 0.165*(sqrt(x^(1.27718))+641.607)/PALy

Where 0,165 & PALy = price of $PAL at every monthly snapshot

If the community would like to update the amount, feel free to propose an alternative in the comments

Keep the current design (No changes) This option would renew the program on the same terms as PGM-40, so compensation based on PAL value & multiplicator updated each quarter.

Options to not renew the delegate program & abstain are also added.

Means Define new program budget

Technical Implementation Remove old delegates & add new ones on the portal.

Voting Options PAL reward based on USD value & delegation weight Reward based on PAL value & quarterly multiplicator update (No changes) Don’t renew the delegate program Abstain