Enable Reward Incentives on Avalanche

[0xBuns]

Proposal Submitted: Snapshot

Purpose

The purpose of this proposal is to enable SoulSwap to launch on Avalanche by extending our liquidity mining incentives to motivate and reward liquidity providers on the Avalanche network.

Proposal Details

This proposal is intended to update the allocation for SoulPower (SOUL) emissions per the amount voted upon by the community, such that some share of SOUL is minted daily on the Avalanche blockchain. The vote will be for a total allocation share (%) that is based off the most preferred outcome.

In the event that the proposal passes, the liquidity pools and their relative reward allocations shall inherit the authority granted by an earlier proposal – namely, at the discretion of the SoulSwap founders.

Key Considerations

Please recall the following as per our Tokenomics Documentation,

• SoulPower (SOUL) Daily Emissions: our maximum daily emissions is limited to 250,000 SOUL across all blockchains, which means we will never exceed 250,000 SOUL no matter how many blockchains to which we are deployed.

• Flexible Emissions Contracts: our contracts are designed to enable each minter to abide by a set % share of emissions, which applies to our bonds and our liquidity mining incentives.

• Current Emissions Allocation: we currently allow emissions to flow through Fantom Opera at 100% on the blockchain-level, which is split between bonds (80%) and farms (20%). The proposal will effect the blockchain-level emissions, which may reduce the net reward amount, but will have no effect on the share (%) split within the Fantom Opera network, so the 80-20 split shall remain constant.

• Global Token Share: please keep in mind that the DAO and the Team share 25% of emissions, so the net daily community emissions (75%) amounts to 187,500 SOUL rewards.

Example Outcome

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Suppose the proposal authorizes 20% SOUL rewards allocation on the Avalanche network, the (daily emissions) implications are as follows,

• Updated Chain Emissions (+/- change):
  • Fantom: 200,000 (-20%)
  • Avalanche: 50,000 (+20%)

TOTAL EMISSIONS: 250,000 (0%)

• Updated Allocation (+/- change):
  • Fantom Bonds: 120,000 (-20%)
  • Fantom Farms: 30,000 (-20%)
  • Fantom DAO: 25,000 (-20%)
  • Fantom Team: 25,000 (-20%)

FANTOM ALLOCATION: 200,000 (-20%)

• Avalanche Farms & Bonds: 37,500 (+20%)
• Avalanche DAO: 6,250 (+20%)
• Avalanche Team: 6,250 (+20%)

AVALANCHE ALLOCATION: 50,000 (+20%)

TOTAL ALLOCATION: 250,000 (0%)

Additional Information

Since an earlier proposal authorizes the founders to determine the allocation within the farms and within the chain, then the rewards for each pool and for each incentive are unaffected by the outcome of this proposal.

Please feel free to add comments and consideration regarding this proposal, thanks!

Warm Regards,
Buns “back from the dead” Enchantress

Voting takes place here: Snapshot

[Spacemaker]

I think it’s basically a good idea despite the fact that it will cost me in SOUL rewards. Basically I see no option of a DEX and a Cross Chain Swap other than for it to have many pools with large liquidity on many chains The purpose of the DEX is to be used to exchange tokens and unless there are liquid pools it isn’t usable. Liquidity providers are rewarded by trade fees. (yes, there are minted tokens as rewards but fundamentally that’s just inflationary blah blah). The point is, the ideal scene is a multi chain DEX that’s used by the whole crypto community. It requires multiple pools of at least the major coins on each chain so that people can swap chains and then go off into that ecosystem and go into more detailed token chicanery on whatever platform they want. But the first part - swapping from one chain to the next - can either be done in a CEX, like Binance, or a DEX and unless SoulSwap is widely used, it has no value, so for the greater good in the long run I think it needs mining pools on multiple chains and then the huge usage of fees really pays the liquidity providers. So I’m for it.

[diarrhea]

Splishity, splash, splash, plotp. The sounds of diarrhea can be heard hitting the porcelain bowl. As the camera pans upwards an old man, disheveled, sits there with his eye closed. The black suit pants around his ankles makes him seem somewhat humbled but the frown lines and yellow tinge to his clamored countenance is rather off putting. With eyes still closed he lets out a wracking cough, then begins to speak

This is something we must do.

As much as I was content farming at these low prices on this god-forsaken chain I understand we must branch outside and try to capture new victi…err, liquidity on other chains.

The old man releases another huge gush of semi-solid waste from his bowels

OooOoooo

Now with all the hype around layer two’s, I should probably be questioning ‘Why Avalanche’. Especially when Fantom transactions are twice the amount, but what does that mean anyway? Probably a bunch of automated zero’s and one’s hitting a sell, buy button. Fantom’s reputation stinks. The developers who heralded it have turned their backs on it, hurt, and their qualms with the chain have echoed through the social media platforms. It stains.

Avalanche doesn’t have a great community. We’d have to build it.
Where is your strategy to do that young lady?
We can’t just deploy and expect people to come. If we deploy and shill without a strategy these emissions are going to cause the price to take a hit after a short stir, possibly, maybe. It’s going to disgruntle new users once they buy their bonds. Not only that, we would annoy our original users because of their own farms dilution.

As a fragmented community we’d take the brunt.

He slowly unrolls around two feet of single ply toilet tissue and begins to fold it, and fold it, and fold it until it resembles one perfect square.

We’re going to need people to work with, partners, on Avalanche otherwise it’s just going to be us dumping on each other. If you don’t believe it will be, please, tell me who will be buying Soul in the middle of a bear with the majority of buyers searching the real yield narrative.

Unless we address this there is no point moving to Avalanche. We need a campaign to go over there with, we need an army of people willing to go in-depth about what it is we can provide over our competitors. There needs to be selling points in laymen terms that any Tom, Dick and Harry can tweet out, or write in a discord, that might appeal to others of the same sort.

Until this is addressed, there is no point in going over.
Until this is addressed, we will not succeed.
This ain’t no Kevin Costener “If you build it they will come scenario”. This is survival of the fittest right now, and you don’t survive by dumping on each other. You survive by coming together and having a mission goal, making it in every Soul holders best interest to hold the token in the promise of what’s to come.

Going cross chain is great on the surface, but it is only surface. Once we are there we have no body to our mission. Only a mission title. “Set up here, deploy emissions…now what?”

He slowly reached behind his body, a twisted contortion that seems somewhat unnatural and begins to slowly wipe between his buttocks. A faint sound resembling sand paper light brushing up against a tree branch can be heard*

Now what?

We do this journey all over again and expect a different result? Unlikely.

Now what?

We can discuss this, but I worry you’re already on the move and my old body will be dragged along for another ride based on impulse and impatience.

If you have a marketing plan, a strategy than I am unaware of and it’s good we need to do it properly, and I’d be more than happy voting for a higher than twenty percent allocation.

But, what do you think is going to happen when we get there? Answer my “Now what?”

-NOIR-

A toilet flush is heard and after a few seconds the zipping of a fly

[SoulSwap]

I appreciate your feedback and I can empathize with your delivery. I, too, use humor to navigate through how best to express how I feel, especially when it’s a heavy topic — which this certainly is.

I am glad we are getting some formalized discussions on this matter and hope you feel encouraged to continue deliberating and pressing us to be answerable to our intentions, motivations, and strategies.

I will do my best to remain transparent on these matters, which also means acknowledging I do not have all the answers. In fact, this is precisely why these matters are up for debate and proposed in such a way that ultimately enables the community to decide how we operate on substantial and structural matters.

Let’s review some of your points. I will do my best to paraphrase, but please feel free to correct me if I do so inaccurately (overlook or ignore). I’ll reply below each:

1. Why Multi-Chain?

One of the main advantages we have over others is in our ability to maintain flexible rewards in a simple manner. Our contracts are an improvement over our competitors as we have implemented the ability for our token SOUL to have mint permissions extended to more than one “owner”, instead we have “roles”, one of which belongs to our minters, which are currently bonds and farms on Fantom.

In other words, we were built and designed with multichain in mind. This has been our intention since day one and discussed throughout our documentation and publications. I will gladly expand on this, if you’d like, to highlight or review whatever concerns you or anyone else in our community may have on this matter, but we have been especially transparent on this matter.

2. Why Avalanche?

Avalanche has stood out as the strongest contender for the next step in our expansion. We held an informal vote on Twitter and (correct me if I’m wrong) but also on Telegram. We have discussed this topic with the community for the past 3 months (at least) and it has been consistently mentioned in our Town Hall.

These are our best method for catching onto how our community feels about where we should go next and I want to emphasize that there is still ample opportunity for the community to disagree via this proposal and in this forum. I can go on, but I will move on for meow.

3. Community Growth

First, I want to make it abundantly clear that this proposal was not made on a whim and without months of careful consideration as to what and when is best for us to expand to another blockchain. I will highlight a few points to demonstrate what I mean:

1. Time is of the Essence: we have a cap of 250M SOUL, yet we have already reached almost 100M SOUL on Fantom, which leaves us with around 60% of our emissions. We cannot continue to wait around while our emissions trickle down. If not now, then when? We have done our due diligence and this is not a trivial matter whatsoever. This wouldn’t be feasible without proper foresight, especially from a technical perspective.

2. Community Support: there are a number of initiatives runnings parallel to this potential launch.

A. I’m a member of 30+ females in a Twitter (DM) group filled with ladies who are all part of the Avalanche community. They’re eager to welcome us with open arms and will fill our schedule with AMAs, partnerships, and opportunities that we don’t have lined up on others chains. Not even on Fantom.

B. In my experience, I have witnessed an active and welcoming community from Avalanche thus far. There’s no clear way to gauge what’s popping. It is a subjective matter, so we may respectfully agree to disagree.

C. We have close ties with projects also launching on Avalanche. Namely Enjoyooor NFT and Surveyor DAO, but also another project I have been working with that will be made evident in the future. This project already has funding far beyond most projects on Fantom. They are professionals and a large team with an impressive track record and remarkably well-connected.

D. Today we announced my permanent role on the new Fantom Unchained (Fantom Alerts YouTube), which has been rebranded as “Across the Chains”. This will help us tap into an audience of 150K+ subscribers.

I am sure I’m missing some points, but I’ll end it here (for meow) and would love to hear from you and anyone else who’d like to chime in.

[Wind]

Hi @SoulSwap,

Thanks for the context provided above that you made in response to the other commenter (with the… erm… colourful post).

I understand the benefit of us expanding beyond our home chain (Fantom) and think your points about the inroads you’ve already built (and expect to activate) in the AVAX community are great.

All of that strikes me as good for SOUL in the future and I can see how expansion is in our best interest.

That said, as much as I intellectually understand the above I also am still struggling to wrap my head around the prospect of seeing my current bonds take a significant hit to their returns. It definitely presents a significant impact to the calculus that BOND users would have made (6 months ago, 1 month ago, or even today) to tie up collateral for an extended period of time.

Has there been any brainstorming of ways to perhaps open up some of our daily SOUL emissions to AVAX rewards without current bond holders bearing such a hit?

For example, some thought starters:

a) Because FARMS are more flexible (you can much more easily withdraw and reallocate as yields change)… could the allocation of emissions come out of just farms instead of also from BONDS?

b) Is there a way to allow current bond users to reallocate their collateral, perhaps as a one-time option in light of this merge, to AXAX bonds? For example, I know if we allocated 50% of soul emissions to AVAX i’d be interested in moving 50% of my current bond collateral there.

c) Could there be an incentive of some other kind to encourage existing BOND users to support this proposal?

[diarrhea]

Master Wind. Well said, sir. Well said.

I worry about this too. I worry more about the token being worthless because we’ve stayed on a dormant chain for too long. I don’t like the community around the Fantom brigade; It’s strange and detached from what’s going on in reality, which can work when you’re a 500k market cap coin but it’s not real and it cannot last. These relationships which are formed are fickle and vapid, if it falls to pieces now we’ve all lost our investment. Avalanche at least gives us a fresh look and a chance to build as well as cut fat.

Young Buns has made some good points.
If there is a community willing to embrace Soulswap out there I think we need to head there pronto. Fantom has been a little ugly in that regard. It’s a fairly gated community in the top 10-20 protocols, even the best ones are constantly being manipulated and hoodwinked by its biggest contributors.

Mr Wind do you think the team is taking too much @ 20%? If it’s all going to Buns, I can live with that as she’s at least active on the Github. The social side of things I don’t like. Again it’s Buns doing the proper leg work ( Alerts regular is great reach ) and all I see outside of her is soft shilling with no real reason to buy the token behind it. Have you seen anything different? If there’s anyone else taking cuts of this outside basic moderator duties they are doing a poor job in my opinion as a blind, gassy investor.

[SoulSwap]

Thank you so much for your feedback and there’s much I could say, but the response I feel matters most is the fact that we already allocate >2x what we originally started bonds off with (now at 80% of all reward emissions), so I don’t think it is unrealistic to cut into that allocation.

While I sympathize with bonders, ultimately, returns are (and shall always be) variable. We can control some factors, and some we can’t, but, regardless, there is an expected variability. Such variable has always included the knowledge of lowered emissions once we expanded to new chains.

Additionally, thanks to a recent proposal (a community member created), bonders now have the power to use their pending SOUL to signal how they feel, providing those who disagree with the power to shut this all the way down to 0% emissions on Avalanche, if they so decide in a democratic manner.

Because of this, imho, to dismiss any potential decreases in the bucket that receives 80% of all reward emissions sounds a bit, for lack of a better word, myopic.

[Wind]

@SoulSwap

I think it’s important to be really clear on perspective here: of all the people who have voted on this proposal so far (a historic amount of Soul for any vote in our history I think?!), zero people have voted to dismiss any potential decrease in the bucket that recieves 80% of all emissions.

So I think it’s safe to say we are certainly way outside the risk of anyone being myopic here – in fact there seems to be unanimous consent so far that some decrease in favour of allocating some rewards to AVAX is justified.

What I think is true, however, is that folks are not clear and fully aligned on:

a) What amount of daily emissions going forward is the right amount to reallocate to AVAX

b) Having a clear understanding of the expected, or anticipated, benefits to SoulSwap (and their investments in it so far) of this reallocation will be.

I think there is likely an opportunity to maybe fill in the uncertainties around B a bit more in order to encourage more folks to not only be more cohesive about A, but also to encourage them to be more willing to vote for the 50% option (as you did).

For example on my end, I voted for a lower amount (but again, far from 0%… which no one has voted for!) with a pretty significant amount of Soul because while I intellectually can understand that expanding to AVAX is good for the protocol… how good it is, what impact it will have, and how that impact might positively improve my existing investment in SOUL to date is unclear to me.

Would love to better understand those factors before I vote with the remainder of my SOUL holdings (in other wallets), and I have a feeling other SOUL holders might as well.

Who knows, it could be a great opportunity to convince some folks to vote for the 50% option instead of tipping the scales in the close battle right now between the 40% and 20% options.

[DefiDt]

Okay, my two cents… No objections to allocating rewards to the Avax side; it makes a lot of sense for all the reasons mentioned above. But I do wonder about what would be the minimum required allocation to build any meaningful tvl there; with an 80/20 split the liquidity on Avax will obviously be a fraction of what’s on Fantom (which also has significant permanent POL)… Do you have any idea?

I also agree with Wind about the problem with bonders. Anything above 20% would seem rather harsh on the most committed group of holders. Maybe it’s more fair to reduce fantom bond allocation less than the other groups (e.g. make bond reduction -10% and reduce the other groups more: 135k/35k/30k/30k). If necessary, the bonds could be reduced further on the fantom side over time (say another 10% in 3 months). This at least alleviates the pain for recent entrants.

[Mr_Slugg]

The bonds are junk status at the moment. What will change this on FTM? Giving a fair crack of earning potential to new AVAX investors would seem the only reasonable option at the moment.

On a side note could bonds be bought and sold without minting to allow the purchaser to keep earning the rewards and the seller not have to market sell soul to redeem?

I personally voted for 50% allocation and have a decent size bond started within a day of it going live in december.