RFP-35 (Resubmission): Establishing a Dynamic Emission Schedule for dLP Lockers

Abstract

This proposal is a resubmission of the original RFP-35, which was not ratified. It is a strategic extension to RFP-33 by introducing a dynamic anti-dilution emission schedule to dLP lockers as per RFP-33. Two (2) key changes from the original submission include the linear schedule for the anti-dilution emission and ensuring 100% of the forfeited RDNT tokens remain in the qLP pool to be redistributed to only qLP.

Motivation

Building on the foundation laid by RFP-33, which sought to enhance Radiant's emissions runway and increase utilization rates, RFP-35 is crafted to further leverage these efforts by prioritizing the contributions of those who have committed to locking their dLP within the Radiant protocol.

RFP-33 earmarked 125,000,000 RDNT for the purpose of streaming additional rewards to eligible dLPs over a two-year period. RFP-35 introduces a linear emission schedule designed to reward long-term commitment among these eligible dLP lockers, thereby ensuring sustained engagement and enhanced liquidity. This phased approach to distributing rewards aligns with the gradual dilution expected from the supply adjustment terms as laid out in RFP-33, ensuring that the incentives remain effective and stabilize token value as the supply increases. By doing so, RFP-35 aims to bolster the community's investment in the protocol's success, aligning the community with Radiant’s strategic goals.

Key Terms

• qLP (Quantum dLP): Dynamic Liquidity Provider (dLP) tokens that have been locked prior to the initial snapshot of the two-year incentives program. qLP represents a user’s proportional share of the two-year allocation. These tokens are identical in value, benefits, and function to standard dLP tokens on-chain, but are logged and tracked separately within the Radiant protocol to facilitate the allocation of additional incentive rewards.
• Initial snapshot: A designated on-chain record taken three months (90d) after the ratification of RFP-35 or when the anti-dilution drip mechanism has passed the security audit and is fully implemented, whichever is later. This snapshot captures and locks the quantity of dLP tokens held by each user, determining their eligibility and proportional share as qLP for the two-year incentives program.

Specifications

1. Incentivization Structure: RDNT allocated to dLP lockers will be distributed linearly over an accelerated two-year term compared to the parallel three-year increased emission schedule and will be paid out in 6-month tranches following the qLP snapshot. These incentive tranches will be dripped out (airdropped) using the new dripping mechanism and will be immediately claimable. :

2. dLP → qLP : Upon initiation of the snapshot, each dLP currently locked within Radiant will be considered as a qLP, regardless of its lock duration. A user’s qLP total represents their proportional share of the total RDNT allocation pool.

3. Allocation to qLP and new dLP during the 3+ month transition period: During the transition period between RFP-35 ratification and the qLP snapshot, the anti-dilution emission will be split 85/15 with 85% to qLP and 15% toward incentivizing new dLP, especially for an additional chain launch that is anticipated during this transition period.

4. Partial Forfeiture for Early Exit: If a locker decides to unlock any portion of their qLP during the term, they will forfeit that corresponding proportion of potential emissions. Their remaining qLP balance will continue to remain eligible for incentives as the term progresses. The later in the term the exit occurs, the lesser the penalty, with the most substantial forfeitures occurring within the first 12 months. To track the early exits, random monthly snapshots will be made to track any drop from the previous month’s qLP total.

   By enabling “Auto relock” on the “Manage” page within the Radiant app users can ensure that their qLP positions remain uninterrupted, safeguarding their full eligibility throughout the term. In the event qLP is unlocked but hasn’t been claimed/withdrawn from their pools (displayed in redeemable or dLP overview section) and before the random monthly snapshot is taken, the UI will prompt the user to relock as qLP or explicitly withdraw/exit. If the monthly snapshot is taken without them being relocked prior, they will be counted as early exits, and previously allocated tokens forfeited.

5. No New Entries Post-Snapshot: Post the initial snapshot, no additional qLP can be created. This ensures that the benefit is reserved exclusively for those who are part of the ecosystem at the time of the snapshot. Future incentives will be structured differently to accommodate new community members.

6. Reclamation of Forfeited RDNT: RDNT forfeited by early exits will remain in the qLP reward pool, and 100% of the accumulated total will be redistributed to the remaining qLP at the end of the 2-year term, over the following six (6) months.

Example of Early Withdrawal Impact on Incentives

Consider a user, Alice, who has 100 dLP locked at the time of the opening snapshot. Those 100 dLP are now treated as 100 qLP. For these examples, let’s assume that her 100 qLP represents 1% of the total qLP pool:

RDNT Received at Point: The total RDNT received by Alice up to the point of withdrawal or check-in, calculated based on the linear emission schedule at the specific timeframe.

Remaining Eligibility: vFor partial withdrawals, this column shows how much more RDNT Alice would continue to receive until the end of the term if she maintains the remaining qLP.

Steps to Implement

Initial Setup & Launch

1. Conduct an on-chain snapshot of all dLP lockers three months (90d) from the proposal ratification date to determine initial eligibility and each qualified user’s proportional share of the incentives program. This will establish which dLP tokens are converted into qLP for the duration of the emission period.

2. Begin the RDNT distribution following the linear emission schedule immediately after the snapshot validation.

Frontend

1. Update the Radiant app’s user interface to display each holder's qLP balance distinctly from their standard dLP holdings.

2. Implement a visualization of distribution progress and status, allowing users to see the amount of RDNT they have received and the expected future distributions based on the linear schedule.

3. Provide information on the timing of future distributions and emission schedules.

4. Allow users to easily understand the implications of early exits or additional locks after the snapshot, emphasizing that new locks will not qualify as qLP.

Backend

1. Implement a database schema to tag and track dLP tokens that qualify as qLP at the time of the snapshot. This involves marking eligible tokens in the database and ensuring they are distinguishable from regular dLP tokens.

2. At the time of the snapshot, run a script that scans all dLP holdings. For each dLP token held by a user, if the token is locked, update the database to set is_qLP to true.

3. Implement a monitoring system that continuously checks the state of qLP tokens. If a user unlocks some or all of their qLP tokens, the system should update the database to reflect these changes, recalculating the remaining RDNT entitlement based on the linear schedule.

4. Develop a dedicated module within the existing backend architecture that handles the logic for RDNT distribution from the DAO Reserve, along with an automated distribution stream.

Timeline

• T-0 (Ratification Date): Official announcement of the emission schedule to the Radiant community. The snapshot for determining eligible dLP lockers called quantum LP (qLP) is scheduled. Development of backend database schema and frontend UI/UX integration commences.

• T+ ~3m (see snapshot in Key Terms section): The snapshot is taken, locking in the eligibility and the amount of RDNT each qLP will potentially receive. This marks the closure of new entries into the qLP category. From this point, the emission schedule begins.

• Snapshot - month 6: Initial tranche of anti-dilution emissions with 25% of the total 125,000,000 RDNT distributed at the end of period.

• Months 7-12: Second trance of anti-dilution emissions with 25% distributed at the end of period.

• Months 13-18: Third trance of anti-dilution emissions with 25% distributed at the end of period..

• Months 19-24: Forth and final trance of anti-dilution emissions with 25% distributed at the end of period..

• End of Year 2 (T+ ~27 Months): Completion of the RFP-35 emissions program. Forfeited RDNT from early exits will be redistributed to remaining qLP over the folowing 6 months.

Overall Impact

User Impact: By implementing a linear emission schedule, this proposal strongly incentivizes long-term commitment and enhances user engagement with the Radiant ecosystem. System Impact: Increases protocol stability and locked liquidity.

Cost

• Development: The development efforts required for this proposal will be handled by our existing salaried development team, incurring no additional charges.
• Operational Expenses: There are no new outlays for services or operational expenditures anticipated, ensuring the implementation is cost-efficient and leverages our current resource allocation effectively.

Voting

In Favor: Agree with establishing a dynamic emission schedule as described.

Against: Oppose the dynamic emission schedule proposal.

Abstain: Remain neutral, contributing to the quorum without endorsing or opposing the change.