| id | Title | Status | Author | Description | Discussions to | Created |
|---|---|---|---|---|---|---|
| TIP-189 | Integration Rebates Program | Draft | padzank | Integration Rebates Program | 2023-11-28 |
This TIP proposes to reward successful Thales Protocol integrators with weekly THALES token rebates.
In recent months, Thales Protocol has started establishing itself as an easily integratable liquidity and market making layer for projects that want to build their own Sports Markets and Digital Options applications.
This TIP proposes to further leverage this phenomena by granting successfully integrated Gold Tier projects ongoing rebates of 0.05 THALES tokens per each 1$ of volume driven through Thales Protocol via their affiliate address (e.g. 5,000 THALES awarded per $100,000 Volume Driven).
Volumes to be snapshotted on a weekly basis with rewards distributed weekly as well.
Program to be trialed for 2 months and be capped at 50,000 THALES per month. Max emission of 50,000 THALES per month would be reached in a hypothetical scenario of whitelisted integrators driving $1,000,000 Volume per Month.
Benefits of having the entire protocol built completely on-chain with permissionless access to its contracts has just started coming to light recently for the Thales Protocol.
This type of architecture allows for anyone to use the Thales Protocol contracts as the liquidity and market making layer for any Sports Markets and/or Digital Options application. With serving as the backend, Thales Protocol has successfully delegated the forward facing growth to the integrating projects. Their benefit is not having to worry about collateralization, data and market making risks and can focus completely on user acquisition.
To further promote and solidify the Thales Protocol as the leading infrastructure for this specific type of markets, awarding THALES tokens to projects in amounts approximately equal to total user fees paid is a logical step forward. By having a program that awards teams of integrating projects to drive volume through the contracts will allow us to invite new integrators, motivate more aggressive growth of integrators and overall help steer every party in the right direction.
Since the integrating projects mostly rely on Referral Fees as a sole incentive and motivation, receiving THALES tokens on top will add additional incentive alleway. Projects will have the option to stake the received THALES tokens and further amplify their benefits.
The chosen amount of 0.05 THALES per $1 of Volume Driven by Affiliate Address is sufficient to provide enough incentive for growth while also being safe from gaming the system due to it barely covering the total Fees and incurred Spread for traders. In a hypothetical scenario of distributing 50,000 THALES a month to $1,000,000 Monthly volume driven, the cost is negligible compared to potential benefits of the SafeBox inflow and AMM LPs performance.
Hard Cap of 50,000 THALES per month ensures limit on the budget while also motivating integrators to push growth more aggressively or risk rebates being depleted by other integrators.
This TIP entails the Thales Treasury DAO to:
- Prepare a budget of 100,000 THALES tokens for 2 months (50,000 THALES per month) for Integrator Rebates Program
- Program to run until funds are depleted or another TIP entails additional changes.
- Take weekly snapshots of Total Volume Driven by Gold Tier Affiliate Address each
Wednesday 08:00 UTC. - Disperse the eligible THALES Rebates on the same weekly basis.
- Addition of projects to the Gold Tier Affiliate list automatically makes them eligible for this program, also removal of projects from the Gold Tier Affiliate list automatically removes them from the program.
Copyright and related rights waived via CC0.