MIP-8 “Ranking system for token holders” has been submitted to the Moonwell Governance Portal for on-chain voting. Though I did not submit this MIP, I did want to go ahead and create a forum post to give the community a space to discuss this proposal.
I would also like to take this opportunity to point out a couple of things. Firstly, as stated in the Proposals category of the Moonwell Docs and in the forum’s Governance Overview, proposals should generally begin with a forum post. Though it is technically possible, as we see with MIP-8, to submit a proposal on-chain without any prior deliberation, it is highly recommended that a forum post is created beforehand. This allows for the community to give feedback and help improve a proposal before voting begins. Governance is a collective effort, and as such we should try and leverage the tools at our disposal (forum, signal voting) to engage with our fellow community members and create the best governance proposals possible.
I would also like to make it clear that this proposal only contains a single contract call (on-chain action). This contract call would transfer 20,000 WELL tokens from the treasury wallet to the wallet of the proposal author. The other proposed actions included in MIP-8 (updating the rewards structure to account for WELL staked in the Safety Module), do not have code to backup/action these changes. If passed, MIP-8 would merely transfer 20,000 WELL tokens to the proposal author.
Currently the biggest utility of the well token is governance.
This proposal aims to increase the utility of the well token with the target of rewarding the most dedicated token holders and at the same time increase the amount of well tokens in the safety module.
So, what I propose is to have a ranking system that can be used to reward the well token holders that have well tokens staked in the safety module.
Currently there are 3 types of rewards when we supply an asset to moonwell:
- Supply APY
- Well rewards
- GLMR rewards
I think it makes sense for the GLMR rewards calculation to take in account the amount of well token the user is staking in well safety module.
I propose 4 different rankings:
Base Ranking (0 - 1000 well staked in safety module):
GLMR rewards = Current GLMR rewards*0.5
Beginner Ranking (1000 – 3000 well staked in safety module):
GLMR rewards = Current GLMR rewards*0.8
Intermediary Ranking (3000-6000 well staked in safety module):
GLMR rewards = Current GLMR rewards*1.1
Advanced Ranking (more than 6000 well staked in safety module)
GLMR rewards = Current GLMR rewards*1.3
I think with this proposal we give one more step ahead in adding utility of the well token.