SIP-3: Zealy XP Rewards

Summary

This SIP would implement an airdrop reward system within our protocol to incentivize user engagement and participation in social media campaigns like Zealy. By distributing tokens based on weighted XP points, we aim to promote active involvement in our platform. A total of 20,000 SVY will be allocated for this initiative from the ecosystem wallet.

Detail

Background

To enhance user engagement and promote the growth of our ecosystem, Savvy uses Zealy to grant points (XP) for completing tasks that help Savvy grow. There has been discussion about how to make XP valuable to users, including connecting XP to direct rewards. At the point this proposal was drafted, we had 1,795 unique wallet addresses who are participants and have actively interacted with our quests and earned XP points ranging from 10 to 14,950 XP.

In order to drive future users to the platform and keep current users motivated to complete quests, we propose an airdrop system that distributes rewards as SVY tokens based on participant Zealy XP.

Description of Proposed Improvement

A total of 20000 SVY will be distributed across 8 rounds, with the first round granting 6000 SVY and each subsequent round distributing 2000 SVY as rewards. This system will calculate each participant's share of the reward pool by comparing their cumulative XP against the total XP earned by all participants. If a participant does not earn any XP during a round, they are not included in that round.

This incentive design rewards the following:

• early participation: XP is cumulative so participating in all rounds can max the XP.
• persistence: it is worthwhile to keep coming back each round to participate in each airdrop
• good chance for late-starters: due to the participation requirement, early accounts that are no longer active do not impact those who started later.

The formula for calculating a participant's weighted share in a specific round will be:

rewards_this_round = 2000 # SVY
participant_active = did they participate this round? 1; else 0
participant_xp_total = (sum(participant_xp_previous_rounds) + participant_xp_this_round) * participant_active
all_xp_this_round = sum(all_participant_xp_total)
participant_weight = participant_xp_this_round / all_xp_this_round
participant_svy_this_round = participant_weight * rewards_this_round

Round 1 will be special

Because some users have been accumulating XP for some time now, SIP-3 would recognize that by increasing the size of the first airdrop and by considering all participants to be eligible. Beginning with round 2, the participation requirement will be applied. Since some users have already accumulated XP, they will have additional incentive to keep coming back. However, since many of the older accounts are now inactive, there will be substantially fewer participants in Round 2 than Round 1, giving new participants a good chance.

Example Scenario

Let's consider how 2 rounds would look with a simple example that. In Round 1, we have 8 participants with a total of 5300 initial XP. Each participant in the example receives their share of 6000 SVY for round 1 and 2000 SVY for round 2 according to the following calculations.

• Participant 1 earned 800 XP; 800 / 5300 * 6000 = 905.67 SVY
• Participant 2 earned 600 XP; 600 / 5300 * 6000 = 679.26 SVY
• Participant 3 earned 1000 XP; 1000 / 5300 * 6000 ≈ 1132.08 SVY
• Participant 4 earned 300 XP; 300 / 5300 * 6000 ≈ 339.63 SVY
• Participant 5 earned 700 XP; 700 / 5300 * 6000 ≈ 792.45 SVY
• Participant 6 earned 450 XP; 450 / 5300 * 6000 ≈ 509.43 SVY
• Participant 7 earned 550 XP; 550 / 5300 * 6000 ≈ 622.65 SVY
• Participant 8 earned 350 XP; 350 / 5300 * 6000 ≈ 396.24 SVY

In Round 2, we now have 10 participants but 3 of the original participants were not active. After excluding inactive participants, the XP total this round is 5500.

• Participant 1 earned 100 XP; (800+100) / 5500 * 2000 = 327.27 SVY
• Participant 2 earned 0 XP; 0 * 2000 = 0 SVY
• Participant 3 earned 300 XP; (1000+300) / 5500 * 2000 ≈ 472.73 SVY
• Participant 4 earned 0 XP; 0 * 2000 ≈ 0 SVY
• Participant 5 earned 300 XP; (700+300) / 5500 * 2000 ≈ 363.64 SVY
• Participant 6 earned 350 XP; (450+350) / 5500 * 2000 ≈ 290.91 SVY
• Participant 7 earned 0 XP; 0 * 2000 ≈ 0 SVY
• Participant 8 earned 350 XP; (350+350) / 5500 * 2000 ≈ 254.55 SVY
• Participant 9 earned 250 XP; (0+250) / 5500 * 2000 ≈ 90.91 SVY
• Participant 10 earned 550 XP; (0+550) / 5500 * 2000 ≈ 200 SVY

This scenario illustrates how each round of the airdrop allows participants to be rewarded for their ongoing Zealy contributions, as well as the way late-starters can get meaningful rewards for later participation. The pattern repeats until the entire airdrop allocation has been exhausted.

Proposed Implementation/Transaction

Implementing this SIP will involve recording a data snapshot of Zealy XP for each round, calculating XP and SVY rewards, and executing an airdrop for each round of the program. The snapshot will determine eligibility and support off-chain computations to calculate XP and SVY rewards. The off-chain computation will consider the XP points earned by each participant, then calculate their weighted share using the provided formula. Finally, the airdrop is implemented as on-chain transactions that transfer SVY rewards to recipient addresses.

Impact upon Protocol

This proposal will allocate 20,000 SVY to the Zealy rewards program to provide for 10 rounds of rewards. We expect the protocol will benefit from the program by driving consistent participation from Zealy quests, which are themselves designed to grow Savvy brand awareness and social media presence.

Benefits

• Incentivizes user engagement: Participants with higher XP are rewarded more, encouraging continued engagement with our platform.
• Community growth: A well-structured airdrop system attracts new users and retains existing ones, contributing to the growth of our ecosystem.
• Transparency and fairness: The weighted distribution ensures reward allocation fairness, promoting community trust.

Costs

The protocol shall allocate 20,000 SVY tokens from the ecosystem wallet for this series of airdrops. This program does not draw from liquidity mining or boost pools so as to not impact the token supply or market dynamics.