RGP-3: Ribbon Tokenomics & DAO Multisig Committee

Authors

@julian

Summary

Proposal to expand the Ribbon DAO Treasury multisig to a committee of six, with a small RBN grant for each signer.

RBN Tokenomics

At genesis, 1 billion RBN tokens were minted. 30 million tokens were distributed in a retroactive airdrop, and 10 million tokens were distributed in a liquidity mining program.

So far the RBN token has been used to vote on 5 proposals, including voting on a liquidity mining program and a vault fee change. With the advent of Ribbon V2 algorithmic vaults, we expect RBN to play a much bigger role in tuning the vault parameters, as well as continuing to govern the system overall.

RBN Allocations
The 1 billion RBN tokens will become accessible over the course of 3 years (or more). All allocations that have vesting schedules start on the 24th May 2021, which is when the RBN Token Contract was deployed to mainnet

- 49% to Community Treasury
This community treasury is controlled by RBN Governance, and can be used to incentivize liquidity mining programs, provide provide grants to developers, and other programs to improve the protocol. 20% of this supply is unlocked immediately, and the remaining is vested linearly over 3 years starting from 24th May 2021.

- 23% to Current and Future Team
These tokens go to the current team members as well as future team. This entire allocation is on a 3-year vesting schedule, with a 1-year cliff, starting from 24th May 2021.

- 15% to Current Investors
These tokens go to the existing Ribbon investors over two private funding rounds to fund the development of the project thus far. This entire allocation is on a 3-year vesting schedule, with a 1-year cliff, starting from 24th May 2021.

- 8% to Corporate Property
These tokens goes to the company behind the development of the Ribbon protocol. These tokens are reserved for advisors, future fundraises, and future employees, who will all have a similar vesting schedule based on when the agreements are executed.

- 3% to Retroactive Airdrop Recipients
These tokens go to the RBN Retroactive Airdrop which took place on the 25th of May 2021. This allocation is not locked.

- 1% to Liquidity Mining Participants
These tokens go to the first Liquidity Mining program, which was part of RGP-2 that took place on 16th June 2021. This allocation is not locked.

- 1% to Initial Market Makers
These tokens go to the initial market making firms that provided services from the first week of the Theta Vaults operations onward. This entire allocation is on a 1-year vesting schedule, starting from 24th May 2021.

Ribbon DAO Multisig Committee

The current model of Ribbon Governance primarily runs on Snapshot. Historically, this means that once proposals are proposed and passed on Snapshot, the Ribbon team would execute the proposals. As we transition into a full-fledged DAO, we will transition to a multisig committee of 6 for greater accountability.

To this end, we have selected a few individuals who represent different parts of the Ribbon stakeholders to control the Ribbon DAO multisig. This multisig will be a 4 of 6 to begin with, meaning that at least 4 people need to sign transactions before they can get executed.

The 6 members are:

  • Julian Koh (Co-founder @ Ribbon)
  • Ken Chan (Co-founder @ Ribbon)
  • Tom Schmidt (Investor @ Dragonfly Capital)
  • Zubin Koticha (Co-founder @ Opyn, Ribbon protocol partner)
  • Lucas Kohorst (Early and active Ribbon community member, creator of the Ribbon Dashboard)
  • Amulvs (Early and active Ribbon community member, amulvs#7751 on Discord)

We propose that each multisig member will paid by the DAO through a monthly grant, denominated in RBN. This is to compensate for gas fees and the responsibility of signing DAO multisig transactions. The initial grant will be 3,000 RBN a month per person, paid monthly, for the first 3 months. We will revisit these numbers after the first 3 months.

Vote

We will put up a Snapshot vote on Thursday, 23rd September.

Edit 14/10/21 - Added vesting start date

8 Likes

Hello ser,

Thank you for putting this together.

I wonder if you can tell us the methodology behind the 3000rbn for multisig work?

Many thanks,

Currently:

46% for the team, investors, and corporate property.

49% for the treasury.

5% for the public/people/community.

This is one of the heavier allocations for teams/investors I have seen compared to other projects. Suggesting to better distribute to the public/people/community:

26% for the team, investors, and corporate property.

49% for the treasury.

25% for the public/people/community.

I think it helps if you calculate the 46% with a little more resolution, and reference the tokenomics you’re comparing it to.

Excited to see this post, and very appreciative to take on the role of a signer.

Few takeaways are I’m happy to see a solid treasury allocation with future ideas to incentivize ribbon users.

There was some mentions of the treasury allocation and @julian posted in the discord some references numbers that might help, crossposting here


**community/insiders**
uniswap: 60/40 
ribbon: 53/47 
compound: 51/49

Additionally now that we are closer to LBP might be worth time revisiting how we can actively give value to RBN.

A few easy ones are

  • % of performance fees
  • Vote on deltas for vaults (as a side I really like 1inch dynamic voting of fees and such)

below is a thread with some more ideas
https://gov.ribbon.finance/t/ideas-tokeneconomics-rewards-mechanics-of-rbn/85

2 Likes

I know that it is unlikely that anything will change, since you have probably already promised this amount to your market makers, but I will write this anyway, cause we are playing in the DAO (let’s see if this is really DAO, surprise, suprise).

1% to market makers who are close to your company (have never seen a public announcement in search of market makers) comparing to 1% on the first distribution to liquidity mining participants (do not forget that these market makers also participated in this liquidity mining distribution and took the tokens) looks unfair and like a cheap additional sale/distribution of tokens to friend companies.

Suggestion:
Since the percentage of first distribution among the liquidity mining participants cannot be changed, I would suggest distributing a maximum of 0.5% to market makers and return part of the tokens (or all of it) from the first liquidity mining program earned by internal market makers to the treasury.

1 Like