RFP-24: Incentivizing Long-Term dLP Locks on Mainnet Using Strategic ARB Reserve

Abstract

RFP-18 codified the Radiant DAO’s plan for the ARB tokens granted to Radiant by the Arbitrum Foundation. As per the ratified terms, 30% of the original ARB allocation (amounting to 1,004,408 tokens) was earmarked for strategic use.

This proposal aims to leverage the Radiant DAO's remaining strategic ARB reserve to incentivize additional long-term dLP locks on Ethereum Mainnet. This is an extension of RFP-18 and aims to further stabilize and grow the Radiant protocol's liquidity pools.

Motivation

The successful implementation of RFP-18, saw substantial growth in new dLP lockers, especially for 6-month and 1-year locks. Now, with a significant amount of ARB standing by in the strategic reserve, the DAO has the opportunity to further incentivize long-term commitments.

Following the ratification of RFP-19, Radiant is in the final stages of deploying the protocol to Mainnet. The DAO should consider the strategic value of attracting whitespace users, bootstrapping the expansion by incentivizing dLP liquidity and TVL.

RFP-24 proposes to extend the Starfleet initiative to new lockers who commit to long-term dLP locks on Mainnet, thereby harmonizing with the previously passed RFP-18. In accordance with our branding and prior initiative, this will be referred to as Starfleet Season 2. This action is proposed to fortify our Mainnet presence and capture more long-term value for the Radiant ecosystem.

Key Terms

• ARB: The governance token of the Arbitrum Foundation.
• dLP: Dynamic Liquidity Providers within Radiant’s ecosystem.
• Snapshot window: A specific time period determined by block height for measuring on-chain activities. Please note, this term is not to be confused with "snapshot.org," the on-chain governance system.
• Starfleet: Term used to identify a group of users that the DAO aims to incentivize due to their commitment and vested interest in Radiant’s long-term performance. Not directly tied to the Discord “Starfleet” role in economic terms.
• Starfleet Season 2: An extension of the original Starfleet initiative. The proposed designated timeframe following Radiant's launch, designed to incentivize long-term dLP locks on Ethereum Mainnet.

Specifications

Snapshot Window

• The snapshot is targeted to commence immediately upon Radiant's launch on Ethereum Mainnet, with a contingency window of up to 72 hours for unforeseen circumstances. The start time will be publicly announced.

• The snapshot window will conclude within 30 to 60 days from opening.

• In order to prevent manipulation, the exact duration of the snapshot window will remain undisclosed until it ends.

Qualifying Wallets

• All wallets which lock or relock dLP on Ethereum Mainnet within the snapshot window will be eligible for the airdrop.

• Like Season 1, only 12-month and 6-month dLP locks will qualify for Season 2.

• Only dLP locked directly via the Radiant protocol will be eligible. dLP locked through a third-party yield aggregator will not directly qualify. The distribution of ARB to dLP locked through third parties is left to the discretion of those protocols.

Distribution

• The strategic reserve of ARB tokens in the RDNT DAO Treasury (1,004,408 tokens) to be allocated to Starfleet Season 2.

• The airdrop distribution ratio will be implemented in the same manner as the DAO-approved airdrop distribution specifications for Starfleet Season 1.

  • As per RFP-21, the allocation ratio for 12-month locks will be three times that of 6-month locks. This option rewards long-term commitment to the protocol.

• Eligibility for the window is specific to Ethereum Mainnet lock events, but the qualifying ARB airdrop can only be claimed on Arbitrum.

Steps to Implement

1. Snapshot window will commence as per terms outlined above

2. The snapshot window will conclude within 30 to 60 days from opening

3. A list of eligible wallets will be pulled, accounting for:

   • 6-month & 12-month lockers from within the qualifying block range
   • Total amount locked per duration
   • Applied allocation weighting

4. Integration of the Starfleet Season 2 airdrop into Radiant's frontend

Overall Cost/Impact

Developmental costs and effort are relatively minimal, given that the framework for the Season 1 airdrop, redistribution approach and claim page is already in place.

Anticipated impact includes stabilizing and growing Radiant's Mainnet liquidity, while enhancing the protocol's overall ecosystem vitality across all supported chains, through the utilization of the DAO's strategic ARB reserve.

Timeline

1. Starfleet Season 2 snapshot window to commence alongside Radiant's Mainnet launch, with a contingency window of up to 72 hours; start time to be publicly announced.

2. The snapshot window will conclude within 30 to 60 days from opening.

3. Upon closing, the eligible block window will be announced retroactively.

4. The Radiant app will be updated to allow users to check their Season 2 eligibility.

5. The ARB airdrop will subsequently be distributed to all eligible wallets in the same manner as Season 1.

Voting

• In Favor: Supportive of, agreeing to use the Radiant DAO’s strategic reserve to incentivize long-term locks on Mainnet
• Against: Against implementation of RFP-24
• Abstain: Undecided, but contributing to quorum