Introduction
As we are in the final hours of the vote as to whether Wonderland continues or gets dissolved, I believe it to be wise to begin thinking of ways to sustain growth. This value in this project, and our investment in Wonderland has always been in the revenue share of profits earned through investments made by the treasury.
Anything can happen in the coming hours, but for now it seems that Wonderland will continue. We will need to decide on many things in the coming days and I anticipate that a NO vote will probably result in increased price volatility as people who may have purchased in an effort to capitalize on arbitrage, so there should be something in place that works as a stabilizing force for price action that will also work as a long term benefit to the protocol.
Proposal
I propose that we utilize treasury holdings of wMemo to incentivize long term holding of the wMemo token.
How?
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Initiate a system in which someone can only be eligible to participate in revenue share after they have help wMemo for a period of 30 days.
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After 60 days of holding, you be eligible to begin receiving a “revenue share bonus”
What is a revenue share bonus?
The revenue share bonus would use the wMemo held in the treasury to provide a boost in the holders revenue share. The bonus would be based on a percentage of your current wMemo holdings, with the percentage increasing every 30 days up to a maximum bonus of 100%.
Bonus Chart
1-30 days holding wMemo = no revenue share
31-60 days holding wMemo = revenue share
61-90 days holding wMemo = revenue share + 10% bonus
91-120 days = revenue share + 20% bonus
121-150 days = revenue share + 30% bonus
… and it would continue like this until we cap out at a potential 100% revenue share bonus.
The bonuses are sustainable because after you qualify, your bonus revenue share will come from a portion of the treasury’s wMemo holdings that will then be allocated to you. YOU WILL NOT RECEIVE MORE WMEMO FROM THE TREASURY. THE TREASURY WILL ALWAYS HOLD THE WMEMO. However, if you own 1 wMemo and reach the 20% bonus level, then .2 wMemo will be allocated to your wallet from the treasury and you will receive a revenue share that month on the equivalent of 1.2 wMemo (1 + .2 bonus).
So to be clear, the bonus would be the additional revenue share. You would still own 1 wMemo but your revenue share would be based on a total of 1.2 wMemo.
This would have to occur through multiple snapshots throughout the month and you would only be eligible for bonus rewards based on the wMemo you held at the beginning of the month, so if you added to your holdings, you would have to wait until the next 30 day period to be able to receive the bonus on what has been added.
Like I said this could occur to the maximum bonus of 100%, which is feasible because there is a finite amount of wMemo in existence and since the treasury would continue to hold the wMemo, it would not decrease its value.
In order to disincentive, but not prevent or lock anyones wMemo, I also propose that if a wallet sells any wMemo within a 30 day period, then they cannot advance to the next bonus tier. They will not lose their bonus, they simply cannot advance until reaching 30 days of holding without selling.
If a wallet sells more than 5% of their wMemo, then they would automatically get demoted 1 tier. If they sell more than 10% they drop 2 tiers… 15% will drop you 3 tiers… And if a wallet sells 20% or more they lose the bonus and go back to regular revenue share. Over 50% sell and you lose the ability to share in the revenue for that month.
Please note that this only refers to selling your wMemo holdings, anything received as part of the revenue share will have no restrictions on it.
Conclusion
I feel like this is a better use of the wMemo in our treasury than just burning it for a one time bump in market cap. Using the treasuries wMemo for a bonus payment system as I have outlined makes more sense and incentivizes the right kind of behavior regardless of the amount of wMemo you own.
Thank you for taking the time to read this proposal, I hope it leads to a meaningful discussion and hopefully a leads to a future vote and implementation. Let me know what you think, or what suggestions you may have that might improve what I have laid out. Or even any concerns that I may not have mentioned or you feel may have been overlooked. Thank you.
