[Governance Proposal] - Biweekly Airdrop Update

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We would like to propose to the Valkyrian community to engage in a constructive discussion on the topic of reducing airdrop incentives to LUNA stakers.

More recently launched protocols are setting new trends to minimize or eliminate staking airdrops because indiscriminate airdrops are both costly to the protocol as well as not translating into meaningful user acquisition.

As such, we would like to bring to a vote for the elimination of airdrop incentives to LUNA stakers. The VKR originally slated for airdrops will be either re-allocated to the community pool to support teams building on top of Valkyrie, burned to create more VPs, or deployed to other strategic initiatives to enhance the performance of the VKR token.

We believe that the creation of VPs will be the better option. As indicated above, VPs empower the truest users of Valkyrie Protocol. VPs are used in exchange for admission to exclusive campaigns and other variety of campaign participation benefits.

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I think there is precedent for eliminating staking airdrops to LUNA stakers already. Many protocols are doing and for good reason - LUNA already has immense value accrual, I believe the statistics from flipsidecrypto has shown that LUNA stakers just dump the airdrops, and convert back to LUNA for said value accrual.

That being said, completely agree with the Proposal.

However, as suggested in the telegram previously I think there should be a more ‘user-friendly’ way of accessing VPs/VKRs on the platform. A ‘one-click-button’ for UST>VKR>VP. Meaning all that users need in their wallet is UST. The portocol does the rest. Just my thoughts. Referals and campaigns should be extremely easy to use and navigate for new users.

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Two points I would make

  • Completely agree with getting rid of airdrops. They don’t accomplish much for the protocol.
  • However, they are extremely small airdrops after the earlier reduction, so I’m not sure how much this will actually change emissions and therefore sell pressure. How many tokens are we talking about?
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This is great fdbk. And something that is necessary.
We’ll take your suggestion and propose it so that we can get an intuitive UI for enhanced performance and experience. As always, appreciate the feedback.

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We’re going to be eliminating the remainder of the initial 5% TGE Airdrop allocation and reinstating it to either create more VPs or another strategic initiative to enhance value and performance. As always, thank you for the feedback!

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Thank you everyone for the feedback and responses.

The proposal is to eliminate the remainder of the 5% TGE Bi-weekly airdrops and use them to better enhance the Valkyrie community.

The governance poll: