FIP 04B – Structure Portion Of Booster Program Provisions to "Airdrop"

I hope that this proposal (and the title) are appropriate given that this is the first time I am making such a proposal. I am not adding a vote to this, as I would rather share my thoughts informally first. My apologies if I’m not doing this in the required way.

I’m writing this in consideration of the proposed changes to the Booster Program and in recognition of the current successful incentive structures I see within DeFi.

I think that structuring these user-acquisition programs as a future airdrop would be the most successful approach to gaining more users. Like it or not, this is what the crypto community responds most to. A portion – or all – of the Booster Program funds could be allocated for an “airdrop” in several months and a points system could be implemented in the meantime. If the decision was made to combine the Booster/Referral Program into an Airdrop Program, then the actions currently being incentivized through the Booster/Referral Program would simply be added into the behaviors rewarded via points (and subsequently with airdropped tokens).

It is not a problem that FXN is already circulating. Many projects continue their airdrop program even after the first phase (Optimism, Arbitrum, Ether.Fi, etc).

I think such a program would have several advantages:

  1. Unlike a referral system which only benefits people with large followings, this will benefit everyone.
  2. The booster program is ambiguous since there is no guarantee that constructive actions (such as writing an article) will result in recognition or gain. However, this allows everyone to be predictably rewarded, incentivizing action.
  3. This program would allow us to incentivize various in-dapp actions, which would teach people how to use the platform. We could be precise with what actions are incentivized and those could change over time to direct the TVL funds.
  4. Points have the psychological benefit of allowing users to see – in real time – their progress.
  5. Current crypto coverage focuses on “finding future airdrops.” Structuring the program as such would
    allow for f(x) Protocol to be featured in this form of coverage and would provide greater exposure.

The point system could be put in place for the following two months, at which point the airdrop would occur. I do not know exactly what allocation of tokens could be made available for this. As stated before, imo, it would be reasonable to include the referral and booster program into this, granting points for those activities as well. Whether or not they are combined: I envision the following actions being rewarded (some of these were already mentioned in FIP04):

  1. Points awarded to the quantity of f(x) Protocol tokens held in wallets or staked in the rebalance pools.
  2. Points awarded for minting any f(x) Protocol tokens
  3. Points awarded for community contributions (if combined with the booster program)
  4. Points awarded for voting on DAO proposals
  5. Points awarded for staking in Curve Pools
  6. Points awarded for bridging funds.
  7. Points for referrals (if combined with the referral program)

Walkthrough guides could be created to help people take all of the above actions. This would incentivize people actually learning how to use f(x) Protocol. The exact actions that would be incentivized would need to be designed and weighted properly (something I could assist with).

I know that airdrop point systems are – at times – looked down upon. However, I think that serious consideration to this should be given, due to the reasons stated above. I think it could be a great short term tool to build the TVL, build the user base, gain greater exposure, and encourage people to learn about f(x) Protocol.

I hope that this proposal is in the ethos of the community. Looking forward to hearing your thoughts.