XIP #25: XBG Trading Competition

Summary

This XBorg Improvement Proposal suggests launching a two-week trading competition for the XBG token, hosted on our XBG Portal. The initiative is designed to increase engagement within the XBorg ecosystem, bring awareness to XBG, and reward the most active participants.

Context

As we continue to expand our ecosystem, introducing competitive mechanics that engage our token holders and attract new traders is essential for growth. This trading competition follows the launch of our new LiFi-powered trading widget and aims to:

• Provide a fun and competitive environment for XBG holders
• Drive visibility to the XBG token
• Increase engagement within the XBorg ecosystem
• Distribute XBG to the most engaged participants

The competition also supports our long-term goal of creating high-value participation loops around the XBG token.

Implementation Strategy

Competition Structure

The competition will run for 2 weeks and will be hosted on our XBG Portal. Spot trades via our LiFi widget on the Arbitrum XBG/ETH pair will be counted. Users must register by clicking "Participate" on the XBG Portal before the end of the competition.

We are in discussions with the SwissBorg team to see if we can include the purchases and trading volume of XBG on Solana within their app.

Tracking & Scoring

A snapshot will be taken upon registration to capture the user's starting XBG wallet balance. Only trades made after registration are counted. The end snapshot will be taken at Day 14 to calculate the final rewards eligibility. Users will be rewarded based on a Trading Score:

Trading Score = Net XBG Gained + √(Total Trading Volume in USDC)

Where:

• Net XBG Gained = Final XBG balance - Initial snapshot balance
• √Volume is capped at 10x the net XBG Gained
• Volume is defined as total buy + sell USDC value

Prize Pool

2,000,000 XBG will be distributed to the Top 250 participants weighted based on their leaderboard rank. All rewards will be vested for one month following the end of the competition.

Suggested reward distribution:

Trading Fees

XBorg captures 1% of all XBG volume traded on Arbitrum via DEX trading fees. During the competition period, we will use all the revenue generated from trading fees on Arbitrum to buy back XBG on the open market.

Conclusion

This proposal introduces a high-impact, gamified mechanic that deepens engagement across the XBorg ecosystem. It encourages real trading activity, spotlights committed community members, and incentivises participants to explore other XBorg products.

If approved, the XBorg team will initiate the trading competition on the XBG Portal within a few days following the vote closing.

If rejected, the proposal will be adjusted based on community feedback.