Profile of CampbellLaw in Rari Foundation
Posts by CampbellLaw
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RRC-4: Retroactive $RARI airdrop for Rarible users - Ecosystem Fund Allocation
by CampbellLaw - This user is a moderator
Posted on: Oct. 6, 2022, 9:47 p.m.
Content: Category : Ecosystem Fund Allocation
Author : Campbell Law
Abstract
This document proposed a retroactive $RARI tokens airdrop for Rarible Protocol users, including Rarible.com 8 and Protocol-powered community marketplaces, for the past 3 months in order to support and incentivize loyal community members with RARI Prime membership.
Motivation
The proposed distribution is intended to reward users for interacting within Rarible contracts and incentivize future use of products within the Rarible ecosystem. The last several months were marked by overall decline in the number of transactions and trading volume across the NFT market, and the airdrop is aimed at supporting loyal community members and long-term believers during the bear market.
Eligible users will receive 100 $RARI each, which will enter them into RARI Prime membership program.
Rationale
Rarible.com 8 users will receive retroactive $RARI rewards if they bought, sold, or listed an NFT on the secondary market on Rarible.com 8 and community marketplaces built on Rarible Protocol.
All primary listings, including lazy minted items will not be eligible for the airdrop, since it is impossible to evaluate the impact of primary listings for the marketplace ecosystem if a sale has not happened.
Specifications
The snapshot of users who purchased, sold, or listed items on Rarible from X date to Y date was made on Y date.
A total of 50 , 000 $RARI tokens will be allocated. $RARI rewards are equally distributed among eligible users in the amount of 100 $RARI.
Steps to implement
Make a snapshot on the selected date.
Publish snapshot on the forum
Determine the eligibility criteria making sure we’ve got exactly 500 addresses so that overall distribution totals to 50 , 000 RARI
Transfer to a separate wallet for Safe Contract controllable via veRARI (address: 0 x 04 D 4241 c 42 B 63706 E 4139 b 2 C 73 a 5661 b 7 b 4 E 6 df 9 )
50 , 000 RARI for the program
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RRC-3: $RARI allocation for Rarible 2 brand partners - Ecosystem Fund Allocation
by CampbellLaw - This user is a moderator
Posted on: Oct. 6, 2022, 9:45 p.m.
Content: Category : Ecosystem Fund Allocation
Author : Campbell Law
ABSTRACT
This proposal outlines the vision and process of onboarding a collective of partners in efforts to spread awareness and provide ongoing support to Rarible 2 starting from the public launch. It provides a detailed overview of the partner selection process, outreach requirements, compensation plan and recognition of potential benefits from partner utilization.
MOTIVATION
By allocating $RARI to existing brand partners and new Key Opinion Leaders who support Rarible 2 , we aim to create a word of mouth chain reaction. The anticipated network effect will increase visibility and brand awareness of Rarible 2 and support new users to join the platform.
RATIONALE
Since the launch of Rarible as the first community-owned marketplace, we have built a strong network of projects and influencers with a multimillion following combined. This allocation of $RARI aims at effectively engaging and broadening this partner network through incentives for spreading awareness around Rarible 2 in their communities.
Partners who meet the specific requirements (number of followers, influence in web 3 space) will receive $RARI token rewards as a program sign up bonus, and will be expected to support Rarible 2 through various social channels. As Rarible is a household name and with many partners already using the platform, the generated content will be highly native and will create the required effect.
KEY TERMS
Partner Marketing - a strategic collaboration between parties, whether it is two businesses or a business and an individual
Deliverables - tangible or intangible outputs that are submitted within the scope of a project.
Compensation - monetary payment given to an individual in exchange for their services.
SPECIFICATIONS
Partner Selection Criteria:
Social content style
Number of followers and engagement
Minimum follower count = 10 K
Relevance and influence within the Web 3 /NFT space
Outreach Requirements:
Provide full overview of product
Deliverables - continuous $RARI support via socials
( 2 ) Twitter posts per week
Specific tags will be required to disclose partnership
#RariPartner / #RariRewardPartner
@Rarible
Compensation Plan:
$RARI will be used as the payment method for the partners as a compensation and authentic user experience
Max total budget = 20 , 000 $RARI
1000 $RARI (staked) per partner
1 month full token lock-up
12 -week vesting schedule
83 . 3 $RARI/week
Partner Utilization Benefits:
Amplification for Rarible 2
Build and maintain key relationships for future opportunities
Wide-spread network through partner social channels to reach target audience
Increase in brand awareness and GMV
Generate new leads
STEPS TO IMPLEMENT
Partner research and outreach
Confirm timelines and deliverables
Provide suggested social copies and required partnership disclosure tags
Transfer to a separate wallet for Safe Contract controllable via veRARI (address: 0 x 04 D 4241 c 42 B 63706 E 4139 b 2 C 73 a 5661 b 7 b 4 E 6 df 9 )
20 , 000 RARI for the program
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RRC-2: $RARI listing & trading incentives in collections voted on by veRARI holders - Ecosystem Fund Allocation
by CampbellLaw - This user is a moderator
Posted on: Oct. 6, 2022, 12:46 p.m.
Content: Category : Ecosystem Fund Allocation
Author : Campbell Law
Abstract
This document proposes a new $RARI rewards system for listing NFTs on Rarible and buying NFTs from Rarible aggregated NFT marketplace to incentivize users and capture value. It introduces the concept of RARI Rewards Collections that veRARI token holders will be able to vote on to identify NFT 5 collections eligible for $RARI rewards on a weekly basis, as well as 0 % marketplace fees for stakers.
Motivation
By introducing a long-awaited update to the $RARI rewards system, we aim to establish a committed community of token holders and create a strong network effect that will increase engagement and attract new users to Rarible aggregated NFT marketplace.
This will be achieved by clear and concise mechanics for holders to lock their $RARI and receive veRARI that they can use to vote for collections to subsidize liquidity, and enjoy 0 % trading fees on the marketplace. As a result, community members are expected to form a “sticky” behavior that will lead to recurring trades on Rarible.
Liquidity incentives include:
Listing rewards paid to the lowest priced items with exponential decay.
Purchase rewards paid proportionally to the volume of royalties paid, including purchases from other marketplaces, acting as royalties cashback.
This will create a vortex of liquidity moving from order books of carefully selected collections to Rarible Protocol’s order book.
Rationale
Whether the goods are digital or physical, marketplaces compete for two things to provide value to users: listings and sales. The more listings a marketplace has, the faster a buyer will find the item they seek. And the more buyers a marketplace attracts, the faster a seller can sell at the desired price.
This creates network effects, where each user provides positive externalities to every other user, which in turn attracts more users. For trading venue competition, this means the more liquidity a marketplace already has, the more liquidity it will likely attract in the future. As liquidity thus compounds, user experience improves: The more satisfying transactions a marketplace facilitates, the higher the likelihood that traders will return.
Neither additional features nor desirable branding compensate for lower liquidity. This is why both web 2 and web 3 marketplaces subsidize network effects to attract users to their platform.
$RARI started as a governance token with liquidity incentives directly incentivizing trading volume. The program succeeded in increasing volume, but at the cost of incentivizing wash trading and lacking long-run value capture. The community voted to end the program in January 2022 .
The proposed token incentives for listing and buying on Rarible and Rarible Protocol-powered community marketplaces let us attract liquidity and kickstart the virtuous cycle outlined above in a sustainable way.
The proposed comprehensive update to $RARI tokenomics introduces:
$RARI staking for power to vote for collections to receive liquidity
Listing rewards for Rarible Protocol orderbook
Buying rewards for aggregated orders: royalties cashback
RARI Prime benefits program
Voting
To avoid spreading incentives thin (e.g. incentivizing all collections at once), we propose to concentrate the liquidity incentives among a few collections selected by the community. To make the choice mechanism fair, we introduce a Weekly leaderboard selected by veRARI holders. By rotating collections that receive liquidity incentives, veRARI holders can make sure hot collections are incentivized for a specific period of time, but after that native/non-incentivized behavior is kept.
Listing rewards
To create a healthy marketplace, we aim to incentivize listings (sell orders) as close to the fair market value as possible. We will start by choosing 5 collections for liquidity incentives and implement the following model inspired by bonding curves:
The lowest priced listing with a price below 1 . 4 X of floor inside a collection receives the highest reward with an exponential decay. The longer an item remains listed, the more value it provides to deter holders from listing items for mere seconds before delisting.
Buying rewards: royalties cashback
To process more transactions, we need both sides of the market. That’s why we want to encourage buyers by offering them rewards as well. Rarible Protocol’s access to orders aggregated from other marketplaces’ order books plays a key part here. Wherever the item is listed, if a user bought it through an aggregator, they can claim a reward.
It’s important to note that we expect a royalties cashback program will mainly be used to balance the supply/demand in the first weeks/months of the program, so over time rewards will be decreased.
Rari Prime: 0 % Rarible orderbook fees and other perks
Rari Prime program is intended to be built on top of the new staking program. This mechanism creates value capture by providing fee discounts to preferred traders based on the time commitments. Thus it will help establish a core community incentivized to cast votes to subsidize liquidity to trade NFT collections which seem promising for the long term. As a basic rule we expect to make the orderbook fee 0 % for power users that stake enough RARI
image 795 × 895 58 . 8 KB
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Key terms
veRARI – a non-standard ERC- 20 implementation representing non-transferable voting power a holder receives upon locking their $RARI in a voting-escrow contract for a chosen period of time. Technically, veRARI is a non-standard ERC 20 token implementation.
Lock – an instance of locked $RARI with a specific Release Schedule. One address can have multiple Locks with different Release Schedules. E.g. one may have a Lock of 100 $RARI with a one-month Release Schedule, and another Lock of 1000 $RARI with a two-year Release Schedule.
Epoch – predefined period of time equal to 1 week, during which Buying and Listing Rewards are applicable for 5 selected Collections.
Weekly voting leaderboard – weekly ranking of collections voted on by veRARI token holders, listed in the order according to the number of received votes.
Points – listing rewards accumulated by a user every 10 minutes according to the predefined formula. Points are converted into $RARI tokens at the end of every day.
Claiming – the process of receiving $RARI rewards from the claims contract. Rewards are not distributed automatically to a user’s wallet and need to be claimed.
RARI Prime – a status granted to $RARI stakers alongside with benefits including veRARI voting power, 0 % marketplace fees, a special badge on Rarible marketplace, and private Discord access.
Specifications
We propose to allocate a total of 420 , 000 $RARI over the period of 1 month for these liquidity incentives
1 week - 30 , 000 $RARI/day
2 - 4 week - 10 , 000 $RARI/day
30 , 0007 + 10 , 0007 * 3 = 420 , 000
75 % of daily reward to be spent on listing rewards ( 1 Week - 22 , 500 $RARI)
25 % of daily reward to be spent on trading rewards. ( 1 Week - 7 , 500 $RARI)
Voting
A long-term committed community of $RARI holders will decide which collections should receive liquidity incentives. The top 5 collections ranked by number of votes for them at any time will receive liquidity incentives. To enable fair participation, a collection can’t receive liquidity incentives longer than 2 weeks out of every 4 weeks.
Terms:
There is a weekly Epoch cadence for elected collections. Votes are locked in every week at the same time ( 12 am UTC)
Every week veRARI holders can cast their vote to a specific collection that will be receiving $RARI rewards the following week
Vote is attached to a collection as long as the veRARI balance is kept.
Ex: I’m casting 100 veRARI for mfers
Vote can be changed until epoch lock-in and recast to another collection
Top 5 collections sorted by total sum of votes attached to them are deemed eligible for incentives.
A collection can’t receive more than 2 weeks of liquidity incentives during any 4 weeks time period.
The Rarible team reserves the right to vote for 1 Collection every week with the team’s tokens.
Rewards Lock
To avoid the inflation, we suggest the following distribution process:
20 % of allocated rewards are to be released instantly to the users;
80 % of allocated rewards are to be automatically staked for 1 month and gradually unlocked over the course of 4 Weeks.
The proposed process is aimed at incentivizing users to ongoingly collect rewards, shaping a sticky behavior.
Listing rewards
Terms:
Only listings in Rarible native orderbook under 1 . 4 x of the floor price are eligible for the rewards
Every 10 minutes we take sorted listings by price low to high.
Starting from listing # 1 to listing # 100 according to the floor price each listing generates POINTS for every 10 minutes of existing according to the formula.
Points(N) = 900 /N+ 100 , where N is the listing number.
Now this might sound hard, but let’s see examples:
Listing # 1 gets 1000 points every 10 minutes
Listing # 2 gets 550 points every 10 minutes
Listing # 3 gets 400 points every 10 minutes
Listing # 4 gets 325 points every 10 minutes
Listing # 5 gets 280 points every 10 minutes
Listing # 6 gets 250 points every 10 minutes
…
Listing # 20 gets 145 points every 10 minutes
…
Listing # 50 gets 118 points every 10 minutes
Listing # 100 gets 109 points every 10 minutes
If that’s a fresh listing, it should be live at least for 5 minutes before the first 10 minutes epoch to qualify for rewards. (Avoid bots listings just before the epoch and delisting seconds after)
Rewards are good while listing is active.
Every 24 hours points are converted into $RARI. Daily $RARI reward is equally distributed among all Points accumulated by users
$RARI can be claimed at a person’s discretion.
Buying rewards: royalties cashback
Terms:
The same list of top 5 eligible collections participates in the program.
Each user $dollar value of royalties is calculated.
Every 24 hours all royalties spent by all users are summed.
If that number is less than total amount of $RARI rewards allocated daily for Royalties Cashback ( 7 , 500 RARI for the first week)
In this case Reward = $royalties_paid
If total royalties paid more than daily rewards pool, this pool is split equally among all the buyers proportionally to royalties they paid.
In this case Reward = $royalties_paid/total_royalties * Daily_reward_pool
We expect royalties cashback to be a temporary program to later decay, and the Listing Rewards program to be prioritized.
Rari Prime
Requirements:
Own 20 veRARI from all your locks, which is an equivalent of 100 $RARI locked for 1 month.
Benefits:
0 % Rarible marketplace & protocol fees (i.e. buy and sell on Rarible and Rarible Protocol-powered marketplaces for free)
Fee discounts schedule is expected to be actively governed to achieve protocol efficiency
Prime Status on Rarible Marketplace
Access to a gated Discord community
Steps to implement
Transfer to a separate wallet for Safe Contract controllable via veRARI (address: 0 x 04 D 4241 c 42 B 63706 E 4139 b 2 C 73 a 5661 b 7 b 4 E 6 df 9 )
420 , 000 RARI for the program
Approve spending from Safe to Claims Contract
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RRC-1: Introducing veRARI and Voting - Process
by CampbellLaw - This user is a moderator
Posted on: Oct. 3, 2022, 5:44 p.m.
Content: Category: Process
Author: Campbell Law
ABSTRACT
This document proposes the voting protocol for the RARI DAO outlined in “RRC- 0 : Introducing the RARI Foundation and Fully On-Chain Governance for RARI DAO - Process” based on a holder’s locked $RARI (“veRARI”). This document should be reviewed and considered in conjunction with RRC- 0 , which has been simultaneously posted at Snapshot 14
MOTIVATION
The main motivation behind this proposal is to create the voting infrastructure for the community to participate in the decision-making of the RARI DAO, the governing body of the RARI Foundation. The core objectives for the proposed voting system, in alignment with the RARI Foundation’s guiding values, are:
Greater voting power for long-term lockers (Long Term Sustainability)
Direct on-chain voting and proposal execution (Autonomy + Efficiency & Accountability)
The proposed veRARI (vote-escrowed $RARI) model is based on the notion that long-term aligned participants are willing to exchange short-term liquidity for enhanced privileges within the RARI DAO, which primarily include, but are not limited to, voting rights. This model encourages long-term oriented decision-making rather than the pursuit of individual short-term interests.
RATIONALE
As the RARI ecosystem evolves and expands, a well-defined proposal and voting system is required to gather new community ideas and provide a clear path for these ideas to be approved and implemented.
The RRC Process as detailed in RRC- 0 needs an accompanying consensus mechanism. It must be fair, transparent and automated. Balancing each of these requirements is challenging: on-chain solutions make it costly to vote; off-chain solutions are less expensive, but require actions to happen outside of the platform.
This proposal outlines a voting protocol and system based on veRARI that seeks to balance the pros and cons of various voting approaches, and to hold up the RARI Foundation’s core guiding values of autonomy, efficiency and accountability, and long-term sustainability. The voting protocol based on veRARI can be found below in the following SPECIFICATIONS section.
KEY TERMS
veRARI – a non-standard ERC- 20 implementation representing non-transferable voting power a holder receives upon locking their $RARI in a voting-escrow contract for a chosen period of time. Technically, veRARI is a non-standard ERC 20 token implementation
Lock – an instance of locked $RARI with a specific Release Schedule. One address can have multiple Locks with different Release Schedules. E.g. one may have a Lock of 100 $RARI with a one-month Release Schedule, and another Lock of 1000 $RARI with a two-year Release Schedule.
Lock Amount – number of $RARI subject to a Lock.
Release Schedule – a schedule according to which locked $RARI are released over time.
Release Cadence – time-based intervals whereupon locked $RARI are released. The default Release Cadence shall be weekly (i.e., locked $RARI releases will occur on a weekly basis).
Cliff Period – a period in a Release Schedule during which no locked $RARI are released (i.e., the Cliff Period must pass before any locked $RARI are released).
Slope Period – a period in a Release Schedule during which locked $RARI are linearly released in accordance to the Release Cadence.
Slope – rate at which locked $RARI is released during the Slope Period in accordance to the Release Cadence.
Governor – veRARI-governed smart contract enabling the submission, voting, and execution of RRCs
Timelock – smart contract where, for the duration of the Cooldown Period, Accepted RRCs are queued for implementation and execution. The RARI Foundation’s Board will have the power to veto Accepted RRCs in the Timelock only for the specifically enumerated reasons in RRC- 0 .
SPECIFICATIONS
Assuming the approval of RRC- 0 :
Introducing veRARI
Vote-Escrowed $RARI (“veRARI”) is an extension and modification of a similar concept originally introduced by Curve DAO. The main distinction in the case of veRARI is the introduction of a Cliff Period, which serves as a period of “hard-locking” during which no locked $RARI is released.
In short, veRARI is received proportionally to the Lock Amount and the duration of such Lock, and is reduced as locked $RARI are released.
Any $RARI holder can create a Lock specifying following parameters:
Lock Amount
Cliff Period
Slope
Upon creation of a Lock, a Release Schedule will be initiated.
No locked $RARI will be released during the Cliff Period and instead, to-be-released locked $RARI will accrue and be released in a single batch upon the end of the Cliff Period.
The Slope Period is determined as: Slope Period = Lock Amount / Slope.
See the illustrative examples below depicting three different types of Locks that are possible to create based on the parameters submitted.
Green: Only the Cliff Period is present in the Lock, Slope is set to be equal to Lock Amount.
Amber: Both the Cliff Period and Slope Period are present in the Lock.
Yellow: The Cliff Period is equal to 0 , only the Slope Period is present in the Lock.
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Parameters
The following initial parameters of the system are proposed to be set:
Cliff Min = 3 weeks
Cliff Max = 104 weeks ( 2 years)
Slope Min = Lock Amount/ 104
Slope Max = Lock Amount
Note: This gives us Slope Period to be:
Slope Period Min = 1 week
Slope Period Max = 104 weeks
The voting power of an individual Lock is dynamic and directly corresponds to the Release Schedule.
The initial veRARI balance is determined by the Cliff Period and Slope Period
During the Cliff Period, the veRARI balance remains constant
During the Slope Period, the veRARI balance decreases as locked $RARI is released
Total voting power of a user is the sum of voting power of all their Locks
The illustration below depicts a hypothetical chart of how the Lock Amount corresponds to the veRARI balance
Blue = Lock Amount during the Cliff Period and Slope Period
Red = Balance of
Below is the initial veRARI balance formula:
Screen Shot 2022 - 10 - 03 at 5 . 48 . 35 PM 1678 × 444 48 . 8 KB
where Cliff Min <= Cliff Period <= Cliff Max and Slope Period Min <= Slope Period <= Slope Period Max
This formula consists of three main components:
Fixed Component – the veRARI balance a user receives regardless of the duration of the Lock
This means, at a minimum, the initial veRARI balance will equal 20 % of the Lock Amount.
Variable Cliff Period Component – changes to the veRARI balance depending on the length of the Cliff Period
Screen Shot 2022 - 10 - 03 at 5 . 50 . 50 PM 1104 × 304 19 . 8 KB
Increases to the veRARI balance range from 0 % to 80 % of the Lock Amount depending on the Cliff * Period relative to the Cliff Min and Cliff Max.
Variable Slope Period Component – changes to the veRARI balance depending on the length of the Slope Period
Screen Shot 2022 - 10 - 03 at 5 . 51 . 14 PM 1350 × 340 26 . 4 KB
Increases to the veRARI balance range from 0 % to 40 % of the Lock Amount depending on the Slope Period relative to the Slope Period Min and Slope Period Max
Note: The Variable Cliff Period Component is weighed twice as heavily vs. the Variable Slope Period Component in the calculation of the veRARI balance given that no locked $RARI is released during the Cliff Period, while locked $RARI are linearly released during the Slope Period.
A user’s overall initial veRARI balance will be 20 % to 140 % of the Lock Amount:
20 % multiplier is achieved by setting the Cliff Period equal to the Cliff Min and the Slope equal to the Slope Min.
140 % multiplier is achieved by setting the Cliff Period equal to the Cliff Max and the Slope equal to the Slope Max.
Full Implementation is below:
github.com
protocol-contracts/staking at master · rarible/protocol-contracts 10
master/staking
Interfaces for smart contracts used by Rarible. Contribute to rarible/protocol-contracts development by creating an account on GitHub.
On-chain Governor Set up
This document also proposes a system of direct governance based on the OpenZeppelin Governor contract with a TimeLock extension contract and veRARI as the voting-enabled token. The governance user interface will be accessible via Tally, while the veRARI locking user interface will be accessible at rari.foundation.
Main components of the governance system:
RARI Token Contract - Plain ERC- 20 Token used as a main foundation for governance
https://etherscan.io/token/ 0 xfca 59 cd 816 ab 1 ead 66534 d 82 bc 21 e 7515 ce 441 cf#readContract 13
veRARI Locking Contract - Escrow contract holding locked $RARI and maintaining veRARI balance
Supports migration
Upgradable
Voting-enabled: supports snapshotting mechanism to be able to connect with Governor
Governor Contract - Main governance contract managing Proposals, Voting, Quorum and Threshold
Uses veRARI as the voting token
Voting capability opens immediately upon launch
The voting options for a Live RRC are “In favor” and “Against.” Voting “In favor” means the voter is in favor of implementing the RRC exactly as-is. Voting “Against” means the vote is against implementing the RCC exactly as-is — one may vote “Against” to encourage the author to resubmit the RRC after making changes.
Quorum and threshold are denominated in veRARI
Quorum is 10 % of veRARI total supply
Threshold for proposal submission is 5000 veRARI
Upgradable
The voting for each proposal will be open for 5 days.
Docs: Governance - OpenZeppelin Docs 2
TimeLock Contract - Extension of the Governor Contract enabling the Cooldown Period.
!! Acts as an executor so it should hold Treasury funds as well as all Admin Roles in other contracts. Tech details:
After a proposal is passed in the Governor it can be queued for time-lock for 2 days period
After this period is proposal is executed and the technical executor is TimeLock contract
That means that Treasury Funds, Approvals, Admin functions should use TimeLock contract as “owner” of everything, not governor.
Proposals that are approved by the holders of the requisite number of veRARI will enter into the Cooldown Period, during which the Board of the Foundation may reject such proposals for reasons detailed in RRC- 0 and the Foundation bylaws. If the Board does not affirmatively reject proposals approved by holders of the requisite number of veRARI during the Cooldown Period, such proposals will be implemented.
Veto right can be transferred to another wallet by governance decision
Docs: Governance - OpenZeppelin Docs
Tally - Front-end service for submitting, voting, queueing, executing proposals
https://www.tally.xyz/ 5
Rari.foundation - Locking Interface
Interface for Lock creation
veRARI calculator
Delegation interface: to be implemented here
The illustration below depicts how different parts of the governance model interact with each other:
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Contingent upon approval of RRC- 0 and RRC- 1 , this Governance Model will be used for all proposals starting from RRC- 2 .
STEPS TO IMPLEMENT
Solution is implemented:
Launch veRARI locking user-interface
Launch Governor and snapshotting contract for veRARI
Created specific space on Tally
Set administrator addresses
Set voting rules
Opened ratification of RRC- 0 and RRC- 1
TIMELINE
Solution prepared and ready to be ratified
OVERALL COST
No cost to implement
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RRC-0: Introducing the RARI Foundation and Fully On-Chain Governance for RARI DAO - Process
by CampbellLaw - This user is a moderator
Posted on: Oct. 3, 2022, 5:22 p.m.
Content: Category : Process
Author : Campbell Law
ABSTRACT
This document proposes the setup of an independent RARI Foundation fully controlled and operated by $RARI and veRARI holders. It introduces an elaborate on-chain governance process, intended to align the long-term vision and incentives for all Rarible Protocol participants. This document should be reviewed and considered in conjunction with “RRC- 1 : Introducing veRARI and Voting - Process”, which has been simultaneously posted at Snapshot 37
MOTIVATION
The proposed RARI Foundation grants members of the RARI DAO the right to submit proposals, to vote on such proposals and to execute approved proposals independently from any single centralized party. This proposal marks the next step towards full decentralization of the governance of the Rarible Protocol ecosystem in alignment with its core values.
The guiding, core values of the RARI Foundation are the following:
Autonomy
Prioritized resource allocation for autonomous mechanisms rather than programs reliant on human execution
Governance minimization
Algorithms rather than bloated DAO operations run by humans
Efficiency & Accountability
Sharp focus on optimizing available resources
Accountable parties, measurable deliverables and milestones for every proposal
Long Term Sustainability
Strategic decision making for the long term
Zero tolerance for short-term profit seeking
Reinvesting and compounding value (vs. external extraction)
RATIONALE
RARI Foundation is set up as an independent legal body that allows the RARI DAO to vote to enter into contractual relationships, issue grants and utilize the other benefits and protections of a legal entity.
RARI Foundation serves the RARI DAO community and is governed by it, in the joint pursuit of building decentralized infrastructure products that empower NFT communities.
The goal for RARI Foundation is to facilitate a sustainable governance system that will allow veRARI holders to execute on this vision in an independent and community-centric manner.
GUIDELINES
The RARI DAO will be able to vote to nominate, appoint and/or remove directors of the RARI Foundation (the DAO’s “Board”). The purpose of the Board is to administer DAO proposals and serve the vision of the community, not as its leaders but as its service providers.
A Board member may be removed and replaced pursuant to a majority vote of veRARI holders at any time following the standard proposal procedure.
In the event that no director nominee receives the requisite votes of veRARI holders to be appointed as a Board member, the then-current Board members will continue to serve on the Board until removed or replaced otherwise by vote of veRARI holders.
The total cost of implementation of any proposal should be clear in order for such proposal to go to vote.
The Board is a mere administrator of the wishes of the RARI DAO. Thus, proposals must be crafted to leave as little room for discretion by the Board to implement and must explicitly and specifically include the required terms as detailed in Phase 2 below. Proposals that do not include sufficient specificity may be rejected by the Board.
KEY TERMS
RRC (RARI Request for Comment) – a document proposing a new feature, project, activity, goal, piece of information, or change to any proposal that has already been implemented.
RRC Idea – an optional, but recommended first step in the process of creating an official RRC, which will be presented to the community for gathering informal feedback for a period of seven days.
RRC Categories – the predetermined classification system for organizing RRCs by their nature or intent. They are: Core Proposal, Principles Proposal, Ecosystem Fund Allocation Proposal (a subcategory of Core Proposal), Process Proposal, and Informational Proposal.
Core Proposal – a proposal that would be considered the main activities of the RARI DAO, with subcategories that can be expanded on over time via proposal submission.
Principles Proposal – a proposal for establishing and/or updating the major principles behind the distribution of the $RARI token and fees, including, but not limited to, staking, $RARI tokenomics and budget rules. A subcategory of Core Proposals.
Ecosystem Fund Allocation Proposal – a proposal about how the Ecosystem Fund should be spent. A subcategory of Core Proposals. Allocation proposals should follow Principles Proposals, e.g. yearly budget is a Principle Proposal while funding a project is an instance of Allocation Proposal.
Process Proposal – a proposal about making a change to a process or proposing an implementation. Examples include procedures, guidelines, changes to the decision-making process, and changes to the tools or environment of the RARI DAO or RARI Foundation.
Informational Proposal – a proposal that provides general guidelines or information to the community but does not propose a new feature.
Live RRC – an RRC that has launched for the community to vote on it. The voting options for a Live RRC are “In favor” and “Against.” Voting “In favor” means the voter is in favor of implementing the RRC exactly as-is. Voting “Against” means the vote is against implementing the RRC exactly as-is — you may vote “Against” to encourage the author to resubmit the RRC after making changes.
Accepted RRC – an RRC that has met quorum requirements and received more than 50 % of votes “In favor”.
Accepted Final RRC – an Accepted RRC which has not been rejected by the Board during the Cooldown Period and will be implemented by the RARI Foundation.
RRC Process – the process by which an RRC can be proposed, voted upon and implemented by the RARI DAO and RARI Foundation.
SPECIFICATIONS
Every holder of at least 5 , 000 veRARI can make a proposal for a new feature, project, activity, goal, piece of information, or change to the RRC Process.
RRC PROCESS
Phase 1 : RRC Idea (optional but recommended)
An RRC Idea is submitted as a post in https://gov.rarible.org/ 19 or other discussion forum approved by the RARI DAO (“Forum”).
The person or people submitting the RRC Idea will be referred to as the author or authors.
Multiple members can work together on an RRC Idea, but it should be submitted only once.
RARI DAO members should search past proposals to ensure any idea they intend to write a proposal for has not already been submitted.
If a suggested proposal directly conflicts with a proposal that is currently up for vote, the second proposal should not go for a vote until a decision is made on the first proposal to avoid approval of opposing requirements.
A suggested proposal that directly conflicts with another approved proposal should explicitly include in the Abstract (as detailed in Phase 2 below) a statement indicating that such proposal is amending a prior approved proposal.
The RRC Idea informally gathers comments via the Forum.
Seven days after being posted in the Forum, the community feedback process for the RRC Idea will close.
Phase 2 : RRC Draft
Once the seven-day feedback window has passed, the author shall draft a proposal with the below required fields (“RRC Draft”).
A proposal must include:
Abstract – Two or three sentences that summarize the proposal.
Motivation – A statement on why the RARI DAO community should implement the proposal.
Rationale – An explanation of how the proposal aligns with the RARI DAO community’s mission and guiding values.
Key Terms (optional) – Definitions of any terms within the proposal that are unique to the proposal, new to the RARI DAO community, and/or industry-specific.
Specifications – A detailed breakdown of the platforms and technologies that will be used.
Steps to Implement – The steps to implement the proposal, including associated costs, manpower, any legal documentation and risk assessment (if applicable) and other resources for each step where applicable. The steps must be described with sufficient specificity to leave as little room for the Board to exercise discretion in implementing the proposal.
Timeline – Relevant timing details, including but not limited to start date, milestones, and completion dates.
Overall Cost – The total cost to implement the proposal.
The author will draft the proposal based on the original RRC Idea, incorporating any feedback provided by the community that helps the idea better serve the RARI DAO, including, but not limited to, lack of specificity in the proposal.
The author can add additional fields if necessary to fully communicate the intentions, specifics and implications of the RRC Draft.
From this point on, the RRC is referred to as “RRC-#: (Name) - (Category)”. For example, this RRC is “RRC- 0 : Introducing the RARI Foundation and Fully On-chain Governance for RARI DAO - Process”.
Phase 3 : Live RRC
Drafts that have been completed can only become a Live RRC provided that the author(s) have at least 5 , 000 veRARI to kick off voting.
Each Live RRC will undergo a 5 day voting period on Tally, during which the RARI DAO members will be able to cast their votes.
The voting options are “In favor” and “Against”. Voting “In favor” means the voter is in favor of implementing the RRC exactly as-is. Voting “Against” means the vote is against implementing the RRC exactly as-is — voters may vote “Against” to encourage the author to resubmit the RRC after making changes.
Any holder of veRARI is entitled to vote. A veRARI holder may also delegate their veRARI to delegates via smart-contract call ‘delegateTo’. Further details on the delegation user-interface are available in RRC- 1 .
The quorum requirement for a Live RRC will be 10 % of the total supply of veRARI. Once quorum has been met, a Live RRC may only be passed with greater than 50 % of votes cast “In favor”. A Live RRC which has not received greater than 50 % of votes cast “In favor” will not pass. A Live RRC which has met quorum and received greater than 50 % of votes cast “In favor” will be deemed an Accepted RRC.
Phase 4 : Cooldown Period
An Accepted RRC will commence a time-lock period of 2 days (“Cooldown Period”) following the approval of veRARI holders.
During this Cooldown Period, the Board will be able to reject the Accepted RRC only if implementation of such Accepted RRC would, as reasonably determined by a majority of the Board acting in the best interests of the RARI Foundation:
Directly conflict with a proposal that is currently up for vote;
Directly conflict with another proposal approved by the RARI DAO;
Does not include the required proposal terms as detailed in Phase 2 above;
Compromise the Board’s fiduciary duties as they are owed to the RARI Foundation;
Be in violation of the RARI Foundation’s bylaws or articles, any statutory requirements of Cayman Islands laws or the laws or regulations of any other applicable jurisdiction;
Cause harm (including reputational harm) to the RARI Foundation (as determined in the Board’s sole discretion); and/or
Cause the RARI Foundation to be in breach of any contracts, agreements or any other arrangements.
Furthermore, given that the Board serves merely as the administrator of the RARI DAO’s decisions, Accepted RRCs that require the Board to exercise discretion by not including sufficient specificity, particularly with respect to the required steps to implement, will be subject to rejection by the Board. Proposals which require broad discretion in their implementation should include a grant to a community member or group responsible for exercising this discretion – not the Board.
For absolute clarity, the default pathway for Accepted RRCs will be to be implemented by the RARI Foundation. That is, the Board must defer to the decisions of the RARI DAO and may only exercise its rejection powers during the Cooldown Period for the reasons provided above.
It is intended that this power is seldom (if ever) used, as it is the hope that the issues mentioned above will be resolved by the RARI DAO community in prior phases.
If the Accepted RRC is not rejected by a majority of the Board during the Cooldown Period, it shall be deemed an Accepted Final RRC and move on to Phase 5 .
Phase 5 : Implementation
For Accepted Final RRCs, implementation will begin based on the steps outlined therein.
The RRC implementation is administered by the RARI Foundation. Implementation may be immaterially altered to optimize for security, usability, to protect veRARI holders, and otherwise to effect the intent of the RRC. Any material deviations from an RRC that would be necessary in order to effect the RRC, as initially approved, will be disclosed to the RARI DAO community and may be cause for rejecting the RRC as set forth above.
PLATFORMS AND TECHNOLOGIES
DAO Hub: the RARI Foundation website at https://rari.foundation 11 , which will provide an interface to educate the RARI DAO members on the governance process and provide access to the Forum (detailed below).
Communication Channel: Forum (Phase 1 )
veRARI holders must go through a wallet authentication process to post ideas or give feedback to ideas via comments.
All posts and comments will be regularly monitored by the DAO community members themselves. There will be zero tolerance for hate speech anywhere on this platform.
The author of an idea via a post in Forum cannot edit the original post. If the author wants to propose changes to the original idea, the author must do this via the comments.
RRC- 0 and “RRC- 1 : Introducing veRARI and Voting - Process” shall be hosted on Snapshot, with voting to be based upon holdings of $RARI.
See RRC- 1 for further details on the implementation of veRARI and Tally on a go-forward basis.
STEPS TO IMPLEMENT
Ratify the RARI Foundation’s Amended & Restated Memorandum of Association and bylaws attached to this proposal and the Foundation Board.
Bylaws - RARI Foundation (Final)( 16242905 . 10 ).pdf ( 66 . 8 KB)
A&R Mem & Arts - RARI Foundation (Final)( 16169857 . 13 ).pdf ( 211 . 5 KB)
Propose a voting process and implement the respective set of smart-contracts (see RRC- 1 ) .
Completed setup of the Forum settings including a custom token-gated solution for comments.
Approve reimbursement of costs as illustrated in the Overall Cost section below and disburse such reimbursement to applicable service providers.
Approve creation and funding of an Administrative Budget Wallet.
Approve commitment in the amount of 100 , 000 $RARI under previously signed contract that shall be granted subject to milestone achievement
Pending approval of this RRC- 0 and RRC- 1 by the RARI DAO:
Transfer to the Administrative Budget Wallet 0 x 2 a 83 d 2891 Ef 3 df 6967 E 3 C 2 e 9 b 69 cCc 7 aD 029736 B:
Transfer $ 280 , 000 USD value in $RARI to to fund administrative and operational costs, as well as reimburse service providers for RARI Foundation set up costs (see details in Overall Cost section)
Transfer 100 , 000 $RARI to the Administrative Budget Wallet 0 x 2 a 83 d 2891 Ef 3 df 6967 E 3 C 2 e 9 b 69 cCc 7 aD 029736 B to hold in escrow as a reserve for signed grant agreement.
Transfer to Main Foundation Treasury controllable via veRARI: 0 x 7 e 9 c 956 e 3 EFA 81 Ace 71905 Ff 0 dAEf 1 A 71 f 42 CBC 5
Transfer all remaining community-allocated $RARI ( 10 , 535 , 350 $RARI minus the above mentioned $ 280 , 000 USD value in $RARI) Transfer all unused funds of previous multi-sig DAO used to be ran on snapshot ( 268 , 905 $RARI)
Separate Wallet for Claim Contract 0 x 04 D 4241 c 42 B 63706 E 4139 b 2 C 73 a 5661 b 7 b 4 E 6 df 9 controllable via veRARI.
Transfer all unclaimed $RARI rewards (approximately 1 , 165 , 447 RARI which may change by the date of transfer) currently available for claims
TIMELINE
Solution prepared and ready to be ratified and approved.
OVERALL COST
Initial RARI Foundation and RARI DAO Setup Costs
Total setup costs including legal costs, DAO administration setup and registration fees to be reimbursed to service providers: $ 230 , 000 (“Total Setup Costs”).
RARI Foundation Board Compensation
Initially, there will be only one Board member: Campbell Law, in his personal capacity, who will serve as a Board member until he is removed or replaced pursuant to a vote of a majority of veRARI holders or upon his resignation. For Board member services, the total cost is $ 25 , 000 USD per year and is already included in the Total Setup Costs figure above.
RARI Foundation Operational Budget
For the sake of operational and administrative efficiency, a separate wallet controlled by the Board has been created (“Administrative Budget Wallet”). Upon approval of this RRC- 0 , $ 50 , 000 USD value in $RARI shall be transferred to the Administrative Budget Wallet for purposes of covering ongoing administrative and operational costs of the RARI Foundation.
As a one-time measure, $ 230 , 000 USD value in $RARI shall also be transferred to the Administrative Budget Wallet to immediately reimburse applicable service providers for the Total Setup Costs. Further funding of the Administrative Budget Wallet shall require approval of an Ecosystem Fund Allocation Proposal by the RARI DAO.
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