RFP-44: Strategic Adjustment to Emission Schedule from RFP-35

Abstract

This proposal builds on the objectives outlined in RFP-33, which focused on adjusting the RDNT token supply and included a plan to distribute additional emissions to dLP lockers to incentivize long-term commitment. While RFP-35, was intended to outline the mechanics of this airdrop, RFP-44 refines and amends the approach, addressing logistical challenges in tracking cross-chain dLP compositions and introducing a more robust mechanism for emission distribution, forfeiture management, and reward streaming.

Motivation

To achieve the goal set in RFP-33 of allocating 25% of the newly-minted token supply to dLP lockers, this proposal refines the distribution strategy originally introduced in RFP-35. It implements a chain-agnostic approach to tracking locked RDNT and introduces a weekly rebalance and streaming mechanism to ensure fair and continuous emissions distribution.

RFP-35 initially set a linear emission schedule for distributing the earmarked 125,000,000 RDNT over two years to eligible dLP lockers. However, due to differences in dLP composition across Radiant’s supported chains, this amendment proposes moving away from using qLP as the basis for distribution. Instead, it seeks to reference the total amount of locked RDNT in a user’s cross-chain portfolio (qRDNT) as the new metric for determining airdrop allocation.

Additionally, a 24-hour grace period will be introduced for users to relock expired dLP positions, allowing them to maintain their qRDNT before forfeiture is applied.

Errata Notice: It should be noted that a line in RFP-33, stating "50% of all DAO Reserve tokens will be vesting linearly over two years," was a typographical error carried over from an earlier RFP draft. The correct allocation for the anti-dilution airdrop remains as 125 million RDNT, representing 41.667% of the total 300 million DAO Reserve tokens. This clarification aligns with the consistent public communication regarding the 125 million RDNT allocation across RFP-33 and both iterations of RFP-35.

Key Terms

• qRDNT (Qualifying RDNT): Total RDNT within a user's locked dLP positions across supported chains.

• Initial Snapshot: A record taken three months (90 days) post-ratification of RFP-35 and after initial successful workflow checks, capturing the total RDNT in each user's locked dLP positions to determine qRDNT. Initial snapshot date is set for 2024-09-05 0000 GMT, pending successful testing.

Specifications

1. Incentivization Structure: RDNT allocated to dLP lockers will be distributed over two years (104 weeks). The distribution amounts will be recalculated weekly based on each user's proportional qRDNT. These rewards will be streamed weekly, with each stream vesting over a 90-day period to promote continuous engagement and reduce the risk of large-scale sell-offs.

2. dLP → qRDNT Conversion: At the time of the initial snapshot, each user's total RDNT locked in dLP positions across all supported chains will determine their qRDNT. This amount will either stay constant or decrease, depending on whether the user unlocks any portion of their dLP.

3. Weekly Rebalance: A cross-chain DuneSQL query will run every week to calculate the total qRDNT held by all users. If any user’s dLP has expired or been withdrawn, reducing their qRDNT, the forfeited proportion will be redistributed among the remaining qRDNT holders for the next weekly cycle.

4. 24-Hour Grace Period: When a user's locked dLP position expires, they will have a 24-hour grace period to relock their dLP. If the dLP is not relocked within this period, the associated RDNT will be forfeited and deducted from the user's qRDNT calculation for the following week’s distribution. Note that this grace period is only relevant when a user has the auto-relock option disabled in the dLP Overview section of the Manage Radiant tab. Enabling auto-relock will prevent any unintended forfeitures due to early exits.

5. Streaming Rewards: The reward distributions will use Merkle streaming, with no fee, facilitated through Angle. Users will receive mtwRDNT, which, upon claiming, gets burnt, and the equivalent RDNT is vested over a 90-day period. The qRDNT query will run on a weekly schedule and be available via an API endpoint. The DAO multisig will utilize the JSON output from this query to fund the weekly Angle campaign.

6. User Interface: The Radiant app will be updated to show qRDNT balances, alert users about upcoming relock deadlines, and provide clear information about how weekly rebalances affect their reward entitlements.

Steps to Implement

Initial Setup & Launch:

1. Conduct the initial snapshot once the following checks have been passed:

   • Three months (90d) post-ratification of RFP-35 (Resubmission).

   • Successful end-to-end testing of the entire workflow that integrates the SQL query, API endpoint, DAO multisig execution, and the Angle streaming mechanism.

System Development:

• Backend: Implement the necessary infrastructure to automate the tracking of qRDNT, manage weekly balance recalculations, and interface with the Angle streaming system for distributing rewards. Surface an API endpoint via Dune Analytics to run the weekly qRDNT query.

• Frontend: Update the Radiant app's user interface to display qRDNT balances, notify users about relock opportunities, and visualize changes in rewards resulting from weekly rebalances.

Timeline

Initial snapshot date is set for 2024-09-05 0000 UTC, pending successful testing, with weekly distributions to follow over the subsequent 104 week period.

Overall Cost/Impact

There will be no additional costs beyond Radiant's regular operational expenses, as the implementation will use existing resources and infrastructure to maintain cost-efficiency.

Voting

In Favor: Support the implementation of RFP-44, agreeing with the proposed changes to establish a dynamic emission schedule based on qRDNT and the updated mechanisms for reward distribution.

Against: Oppose the implementation of RFP-44, rejecting the proposed changes.

Abstain: Undecided, but contributing to quorum.