Season 1 Review

Our goal for Season 1 of the rewards program was to introduce new users to re.al, growing accounts while attracting TVL and capital deployments into the protocols on the chain. Reviewing various metrics, Season 1 has been a great first step in launching re.al to a new community of users.

By many measures, re.al is one of the fastest growing L2s in DeFi, looking at bridge transactions and TVL growth. Both new accounts and active accounts continue to trend up and to the right and we’re seeing daily growth in new transactions on re.al.

Looking purely at awareness, social metrics have seen considerable growth the past month. New follows on Twitter are up substantially as are impressions, profile visits and overall engagement. Do more people know about re.al and are they familiar with some of our key messages? We believe so.

And no other message is more important than our core value proposition:

re.al is the only L2 to fully capture chain and ecosystem value and return it to our users and community. Locked $RWA holders are the primary beneficiary of the growth of the network.

100% of transaction fee profit, along with fees generated from seven additional sources across five total protocols, accrue back to locked $RWA in reETH, a liquid-staked ETH. Rewards accrue in an ETH derivative because $RWA is actually deflationary.

Onchain activity through one month of Season 1 has returned over $500k in fees back to locked $RWA. This has been a major first step in showcasing the value of the chain to new users, including the farmers currently earning $RWA rewards in Season 1.

So what’s the plan for Season 2?

Season 2 Rewards Allocations

The $RWA Rewards Program has gained momentum as a result of its fully transparent approach to typically non-transparent points programs.

With $RWA already in circulation, we could calculate a live value of daily rewards based on the current price of $RWA. We built on that transparency by sharing all of the token multipliers, liquidity multipliers and using those figures to generate in-line APRs for nearly any liquidity activity in the ecosystem. Rewards APRs update daily as monies flow within the ecosystem and we’ve recalibrated along the way to drive the actions critical to growth. To ensure maximum transparency, the scraping algorithm used to record daily points accruals has also been shared in GitHub for anyone to review.

None of this is changing for Season 2. Users can continue to expect full transparency in the process.

The major shift for the upcoming season is an emphasis on driving transaction volumes on re.al. Our goals are the following:

• Continue to build revenue for the community through locked $RWA by increasing total transactions and daily fees

• Incentivize new protocol deployments on the chain through $RWA incentives aimed at rewarding transaction fees they generate, giving new teams a chance to build stake in the chain

• Increase blockspace production and utilization efficiency

Up to 50% of daily Season 2 points will be allocated to blockspace rewards, distributed based on the amount of transaction fees paid.

This allocation will be distributed to both individual users or contracts paying the transaction fees as well as the protocols and contracts responsible for necessitating the transaction.

How it works:

• Up to 50% of daily points will be allocated based on gas expenditure, starting with 1% on the first day of Season 2 and increasing linearly up to 50%.

• Half of that to users spending the gas, half to the protocols necessitating the transaction

• We will be scanning for all events on the chain and then allocating gas rewards (points) to the user or protocol wallets spending the transactions costs

• We will be excluding the genesis protocols (re.al, Tangible, Pearl, Stack, Arcana) from the protocol allocation, rewards will go exclusively to new protocols deploying onto the chain

• New protocols can connect with the team to register the contracts/events we’ll need to track in order to link those transactions back to the correct protocol as well as provide a wallet for rewards

• We’ll add new protocols to the leaderboard like we do with any other program participant, they’ll receive a referral code to onboard their users

• Protocols can determine if they want to redistribute rewards or keep them to build stake in the ecosystem and support ongoing activity through veRWA yields

Our goal is to make it easy for protocols to distribute earned points back to their users if they choose and will help with any integrations and endpoint development to make it easy for them to reflect rewards in their protocol.

The team reserves the right to remove points we determine to be accrued through system abuse. Transaction volume should have a productive impact on protocols or chain operations. Needlessly spamming the chain with transactions will result in forfeiture of points.

Updated Timing and Allocations

Initially proposed, the $RWA Rewards Program was structured as four, two-month seasons. The $RWA supply offered would drop by 1% each season, starting with 4% of supply in Season 1 and ending with 1% of supply in Season 4.

We’ve slightly modified the timing, allocating the remaining six months equally across two, three-month seasons. We’ve also reconfigured the token distribution per season. Total program timing and total supply allocation have not changed.

We believe the updated timing will allow us to better maintain the current momentum from Season 1 as we adjust to the updates of Season 2.

In the meantime, there’s still plenty of time remaining in Season 1 for current and new farmers to maximize the value of their capital and climb the leaderboard.