On June 26, L2 Blast distributed the drop for Phase 1. One of the features of this campaign was to incentivize ecosystem users not directly, but through projects. Some of the Blast points and gold were allocated to projects, which they in turn had to distribute to their users. Blast has done a great job of involving users in the ecosystem, but there is always a dilemma in such cases. On the one hand you need to achieve successful metrics such as TVL, number of unique users, transactions, etc. On the other hand such large campaigns always attract a lot of sybils who inflate the financial metrics and dump the token, getting the drop. This is not beneficial for web3 projects, so it is important to limit the number of such audience, but real users should not be affected.

The article provides a methodology for distributing drop among DAO Envelop participants who have supported the project since Blast was released in the testnet.

Clustering of users

The first thing to do in such cases is to categorize each of the participants according to some criteria and thereby distinguish several groups of users.

Any partitioning must take into account the transactional reputation (TR). You can try one approach in TR implementation using the Envelop Programmable Asset Protocol.

The Envelop DAO utilizes updatable SBTs with tokens inside that reflect the vote power. In addition, these SBTs are categorized into stages reflecting the time of entry into the DAO. The more tokens a participant has locked in an earlier SBT, the more benefits they member has.

Three groups were highlighted:

• SBT zero queue holders;

• Users who don't have the SBT but have (regular) contact with DAO;

• Users who first learned about DAO through Galxe and other platforms' campaigns.

Drop Calculation

Each group was allocated a different percentage of the total number of tokens:

1. 50%, as these are the most loyal members of the community (SBT holders);

2. 40%, as these are those participants who are closer to the first group and are involved in the DAO (token holders who follow for the telegram chat);

3. 10%, as this group already received bonuses for participating in the campaign (participants not actively engaged in the DAO).

Identifying engagement metrics

Such metrics should be defined by the project itself, which uses this methodology, taking into account the interests of the community, the stage of its development, the current market phase, etc.

In the DAO Envelop, it was accepted to take into account the following activities in the first phase of the Blast token drop:

• Claim NIFTSY token in the Blast testnet;

• Create an wNFT (ERC-721 or ERC-1155) in the Blast testnet;

• ETH (Sepolia or Sepolia Blast) donation to the DAO developers' wallet;

• Having the DAO'‘s SBT

• Mint wNFT or NFT in Blast mainnet;

• Buying Menaskop’s NFT collection in the testnet.

All factors were scored at 1 point, but having SBT gives a 2X boost.

Scoring of users

Each group received the following score range as a result:

1. 3 to 7

2. 2 to 6

3. 1 to 5

Next, the scores in each group were summarized:

U is the number of Users, S is the number of scores.

Total of 57 scores were got, which were taken as 100%.

Further, according to the activities chosen above, 50% of tokens for the first group, 40% for the second and 10% for the third were taken and BLAST tokens were divided within the groups:

A total of 57,375 Blast tokens were distributed (Specifies first the scores, then the percentages within the group, and the number of tokens):

1. For the first group

   7 - 12,28% - 3523,026316 - 5 members;

   5 - 8,77% - 2516,447368 - 3 members;

   4 - 7,02% - 2013,157895 - 1 member;

   3 - 5,26% - 1509,868421 - 1 member.

2. For the second group

   6 - 18,75% - 4303,125 - 1 member;

   5 - 15,63% - 3585,9375 - 1 member;

   4 - 12,50% - 2868,75 - 3 members;

   3 - 9,38% - 2151,5625 - 1 member;

   2 - 6,25% - 1434,375 - 3 members.

3. For the third group

   5 - 11,63% - 667,1511628 - 1 member;

   4 - 9,30% - 533,7209302 - 1 member;

   3 - 6,98% - 400,2906977 - 7 members;

   2 - 4,65% - 266,8604651 - 5 members;

   1 - 2,33% - 133,4302326 - 3 members.

It is important to note that active DAO participants are always a minority (usually dozens, rarely hundreds of people), while token holders and chat participants are thousands. Therefore, allocating 50% of all rewards to a limited number of SBT holders is potentially of more value, while 40% for token holders can dilute into hundreds or thousands of people.

After the payouts, DAO Envelop decided to increase the value of SBTs and will from now on allocate 60% of rewards to the first category of participants, 30% to the second, and 10% to the third.

Drop Distribution with time lock

In the Envelop application: app.envelop.is/mintnew a collection of 36 NFTs was created on an individual smart contract: 0x9514B0e9141BBd37Bcd2a4AA11dD4A923a993Da7.

Actually the previous step is not necessary to distribute tokens, but the original NFT would give more value to the drop.

Now in the dApp we wrap these wNFTs and add the previously calculated number of tokens inside.

You can set different time-locks for when a user can unwrap wNFT and get tokens. In our example, we used the same lock time of 60 days.

Such wNFTs remain liquid even though they are locked into token unwrapping. The user can transfer or trade them.

Conclusion

The proposed approach takes into account both quantitative (tasks) and qualitative (SBT of a certain turn) metrics of DAO participants' engagement making the reward system more fair.

Envelop is a multichain programmable asset protocol and NFT oracle.

🌎 Website | 🐦 Twitter | 🗯 Telegram-chat | 🐱 Github | 📢 TG channel |
2️⃣ NFT2 aggregator

📩 Wrapper dApp | 🌾 Farming dApp | 🗂 SAFT wNFT | 🔨 Mint