Ideas: tokeneconomics & rewards mechanics of $RBN

Hello everybody,

a few days ago a few community members and myself had a quite interesting exchange of ideas in the discord regarding the possible future tokeneconomics and rewards mechanics of the $RBN token.

Discussion started somewhere here:
https://discord.com/channels/808777716396195851/808777716941193249/849657245742399498

To keep the discussion going, develop new ideas and make further steps to potential proposals, I want share the ideas here with you.

Those ideas are based on the following assumption:

  • The facts the $RBN token not no-tradable right now, puts the DAO in a interesting position to incentivize long term alignment of the holder/community, reward user and also protects the token from whale-dumping.

  • the $RBN token can be used as incentive to attract new user or to keep them in times when the vaults are OTM and/or capital in danger to leave.

Here are a summary of the ideas:

1.) Incentivize users with RBN rewards when the vault is X weeks out OTM.

Goal: keep existing users in the vault and attract new users. Incentive: users get rewards even if the vault ist not profitable.

2.) Keep RBN no-tradable until certain milestone is reached. For example: 100 million TVL

Goal: align the community and users under the ultimate meme-goal „ making the god damn token tradable “ to help the project grow.
Incentive: the future ability to take profit from the airdrop and rewards

3.) Create some kind of sink for token by using (for example) the xSUSHI concept.

Goal: reduce sell pressure by pulling RBN off the market.
Incentive: get more RBN token by staking (earn fees).

These are of course only rough ideas which need to be discussed and worked out in detail if the community likes them.

Of course you a free to post new ideas!

Cheers,
Looping Noob

3 Likes

Idea nr 3) is something I feel every DAO should have for their governance , as I suggested on discord I would definitely take a look at the way barnbridge has set up their dao and token staking

Generally disagree with “defensive” tokenomics as it tends to create more problems than it solves eg. meta-games around token prices (bullish unlocks) increase volatility, lack of price discovery/low float/liquidity means harder to approve + use as collateral on MKR/AAVE/COMP (one of the biggest ways of supporting token prices long term is REMOVING opportunity cost, not restricting circ supply) and generally distracts from the long term goal of a) creating great tokenomics b) finding the strongest holders. All of the above create perverse incentives to perform certain behaviors short term. Also worth noting that Ribbon has been performing well in terms of AUM without any incentives other than native APYs, so no need to already be thinking in that direction imo.

The first goal of any protocol with regards to token releases should be ensuring there is enough float to get decent price discovery + deep liquidity on dexes, directing native cash flows to the token, and then getting it approved as collateral to remove opportunity cost. Everything else is foreplay.

7 Likes

I agree with your statements. But as you see in the recent proposal about the LM Programm, giving people rewards not only about pushing TVL / AUM but also to attract new people to the community and distribute the token as fair and wide as possible.

See this points:

  1. Expand the voting power to those who missed out on the airdrop
  2. Distribute the governance token to those who have the most skin in the game: vault depositors themselves
    RGP-2: Ribbon Liquidity Mining Program

This approach also COULD get strengthened by keeping the token non-tradable until a certain community goal is reached, because dumping whales or yield farmer likely won’t enter and the rewards will go to those user who are willing to hold term or really believe in the project. For those people opportunity cost is not a thing.

I see it a community bootstrapping mechanic.

After this is done, all the points you brought up a very vaild and should have high priority: high liquidity on dexes, listing on AAVE/COMP, good tokeneconomic and so one.
But those thinks don’t stand in contrast to using and novel way of attracting a good community.

2 Likes

I missed the airdrop however I have skin in the game.
I like the strategy however I cannot vote since I do not have any RBN tokens.
Does this proposal have a solution for ones who have the most skin in the game but missed the aridrop?