App Mining on Rarible Protocol Proposal

Link to the Forum Post: https://gov.rarible.com/t/app-mining-on-rarible-protocol-v2/16101

TLDR

The high level concept behind the app mining program is that instead of the DAO distributing RARI rewards to buyers and sellers, the DAO will instead allow applications building on the protocol to decide where their share of RARI rewards are going, based on the sales volume or fees obtained by each application. An application for example could decide to keep the RARI rewards, or they could decide to give them to their users, or their DAO (among other possibilities).

High Level Overview

We roll out an app mining program in three phases:

• Phase A: This is the current phase. There is no app mining program. The DAO gives rewards to buyers and sellers of the rarible ecosystem directly.
• Phase B: Phase B will last 6 months after beginning and allows applications to direct rewards proportional to fees collected on the protocol. During the early stages of Phase B, we will work with projects to ensure we have the right information to calculate the share of RARI for each project. Phase B will not start as soon as this proposal passes, instead, it will start once we sort out the operational issues associated with the program.

Token Distribution Details

• Phase A: 75% to buyers and sellers on the rarible.com platform, 25% to Rarible DAO treasury.
• Phase B: 10% to RARI stakers once staking is live (until then, the 10% will go to the DAO), 35% to the DAO, 55% to the discretion of applications on the protocol (based on fees collected).

Other Details

• Rewards for Phase B will be scaled quadratically
• There will be a white-listing process, wherein applications must be approved by the DAO (this will be a simple proposal asking to be whitelisted + a bare minimum of details)
• Rewards will be proportional to fees collected by the applications on the protocol, as this is a good proxy for the revenue generated on those apps. This is a better option than revenue of each app since the protocol has a shared order book, and NFTs might be listed on App1, the sold on App2.
• Any application which is notices to have fake volume activity will be immediately removed from the app mining program.