[PIP-2] Turning on Incentives for Pine Protocol Users for Age 1 / Epoch 4

Summary:

This proposal suggests the activation of a weekly PINE token incentive program for Pine Protocol users. The program will allocate 208,000 PINE tokens per week, distributed among four pools, to encourage participation in different activities on the platform.

Motivation:

The main purpose of this proposal is to incentivize users to actively engage with Pine Protocol by participating in different activities like borrowing, lending, and providing liquidity. By offering incentives in the form of PINE tokens, we aim to attract more users and increase the platform’s overall adoption. Additionally, the incentive program will lower the barrier for users to hold and stake PINE tokens, which will ultimately benefit the platform’s governance mechanism.

Specifications:

The PINE incentive program will allocate 208,000 tokens per week, which will be distributed among four pools as follows:

• Borrowing: 42% of the weekly allocation will be reserved for borrowers, pro-rata to the amount borrowed. This pool will incentivize users to borrow assets on the platform.
• Value of NFTs Escrowed: 18% of the weekly allocation will be allocated to users who escrow their NFTs on Pine Protocol, pro-rata to the sum of the floor prices of the NFTs escrowed.
• Permissioned WETH Amount: 12% of the weekly allocation will be reserved for users who permissioned WETH on the platform, pro-rata to the amount permissioned.
• Lending Amount: 28% of the weekly allocation will be allocated to users whose permissioned WETH are lent out, pro-rata to the amount lent out.

The distribution of tokens among the pools will be based on the level of activity and demand for each pool. The incentive program will be initially launched for a period of 3 months, after which it will be reevaluated based on its effectiveness.

Conclusion:

Incentivizing users to participate in different activities on Pine Protocol will increase the platform’s adoption and usage, ultimately leading to a more active and engaged user base. By launching a weekly PINE token incentive program, we can encourage users to participate in different activities and hold and stake PINE tokens for governance purposes. The proposal, therefore, recommends the activation of the PINE incentive program, as it will be beneficial to the platform’s long-term growth and success.

Copyright:

Copyright and related rights waived via CC0.