Proposal Title: Relaunching the FRT Incentive Program to Boost TVL and Optimize Yield Sharing Across the Jarvis Ecosystem

Objective

This proposal aims to relaunch and upgrade the Futures Reward Token (FRT) incentive program to:

• Regrow and sustain Total Value Locked (TVL) in the Jarvis protocol and partner platforms.
• Revitalize yield generation and farming activity across core pools.
• Strengthen demand for jFIATs (especially Super jEUR) via new liquidity and lending opportunities.
• Optimize protocol revenue allocation in a sustainable, modular framework.
• Leverage the potential macro rally of the EUR against the USD by positioning Super jEUR as a high-yield, euro-denominated on-chain savings asset. Enable revenue sharing for JARVIS holders.

Background

The DAO currently holds 4.3M JARVIS tokens, representing ~10% of total supply, worth $80K.

Since 2022, the DAO has stopped distributing JARVIS rewards, and this, along with the Midas and 0vix hack causing jEUR jGBP and jCHF depegs, but also the stop of any BD like stopping the fiat on/off-ramp etc., has led to a significant drop in TVL and overall ecosystem activity.

The FRT model — where rewards are distributed via a token backed by JARVIS and redeemable after 3 months — was previously used with success. This proposal revives and enhances it to meet the current needs of the protocol, integrate more components (e.g. Morpho Blue, Spectra), and align incentives between farmers, liquidity providers, JARVIS holders, and the DAO treasury.

Proposal Details

• Launch a quarterly incentive program (every 3 months, 4x per year).
• Each round, create a new FRT token backed by $20K of locked JARVIS.
• Users farm FRT by participating in select strategies (see below). FRT tokens can be traded or redeemed for JARVIS at expiry.

Eligible Pools for Earning FRT :

• Morpho: Supply USDC in our upcoming vault to be borrowed against Super jEUR and PT Super jEUR, borrowing (DAO will seed this market with 10k USDC)
• Morpho: Supply and Borrow jEUR
• Aerodrome: FRT-ETH
• Aerodrome: jEUR-EURC (this program will come in addition to the current yield on Aerodrome)
• Spectra:PT sjEUR => using to deposit bribes
• Uniswap: EURUSDx5 / USDC (this is the LP token of Jarvis representing a short position)

Spectra Bribing Strategy

For Spectra's PT sjEUR, the DAO will experiment with using FRT as a bribe. However, since FRT is not a well-known token, it may not be attractive to external voters initially.

Thus, the DAO proposes:

• Default approach: Use FRT for bribes.
• If ineffective: Use JARVIS or revenue to bribe directly.
• Continue using the DAO’s existing Spectra voting power in the meantime to support the gauge. In the future, the DAO may explore earning and redistributing yield via its veSPECTRA position.
• Increase our veSPECTRA position by locking the unlocked SPECTRA (SPECTRA lost a lot of value since the last proposal and now it does not make sense to sell them).

Revenue Sharing Distribution Model

To create a more sustainable and aligned reward system, the proposal updates how protocol-generated yield is allocated. Specifically:

• USDC LPs 30%*
• Super jEUR holders 40%
• stJARVIS holders 20% (via 50/50, 80/20, 98/2 pools that are going to be deployed)
• DAO treasury 10%

LPs would earn 30% of the revenues generated by their pools, rather than 30% of the whole revenues. So, as a result, there will be some revenues not shared, called Revenues Surplus.

Revenue Surplus Management

To manage the unallocated 18% of protocol revenue effectively, we propose:

• Delegating authority to the group of 9 DAO signers to determine how to best allocate these funds.

• Options include: ** Backing the FRT, increasing its redeemable value over time. ** Bribing Spectra pools in well-known tokens to attract more external votes.

This gives the DAO tactical flexibility to respond to evolving liquidity and incentive conditions across platforms.

Rationale

1. Regenerates TVL and activity across Jarvis pools with a low and capped budget.
2. Repositions JARVIS as a reward mechanism, while rewarding long-term participation.
3. Aligns protocol revenues with stakeholders in a fair and modular way.
4. Boosts Super jEUR and Morpho Blue activity, while bridging toward wider adoption and future DAO strategies (e.g. jCHF, jBRL). 5 .Supports strategic partner platforms (Aerodrome, Spectra, Morpho) with aligned emissions and liquidity.
5. Leverages the macro potential of a EUR rally against USD:

• In an environment where EUR strengthens, euro-denominated yield becomes more attractive to international DeFi users.
• The program positions Super jEUR as a compelling on-chain savings asset with upward exposure to EUR.

Budget

• $80,000/year in JARVIS (from DAO treasury) ** Distributed via 4 FRT campaigns ($20K each)
• Bribes or extra yield injection from protocol surplus (18%), governed by DAO signers
• DAO will also seed the USDC market on Morpho Blue to bootstrap lending and increase jFIAT borrow capacity

Conclusion

This proposal revives the FRT incentive model with a modernized, modular structure to power liquidity, yield, and governance throughout the Jarvis ecosystem. By aligning stakeholders via updated revenue distribution, supporting new use cases (like Morpho Blue and Spectra), and reacting to macro opportunities (e.g. a strengthening EUR), the DAO can reignite activity and expand sustainably.

The program’s quarterly cadence, yield targets, and flexibility make it an efficient vehicle for growth. Delegating allocation of surplus yield ensures adaptability in execution across each campaign cycle.

Voting Options

• Yes: Approve the full relaunch of the FRT incentive program, updated yield-sharing structure, Spectra strategy, and surplus management via the signer group.
• No: Reject the proposal and maintain current reward and treasury strategies.