Blockchain Proposal: Incentivizing On-Chain Usage with ZK Proofs
Introduction: Enhancing on-chain usage is critical for the growth and sustainability of our blockchain ecosystem. By incentivizing active participation, we can attract new builders and users, thereby increasing network metrics and overall MultiversX appeal. This proposal outlines a strategy to achieve this through the utilization of Brevis, a tool for proving on-chain usage via Zero-Knowledge (ZK) proof, across various xExchange.
Utilizing Brevis for xExchange Adoption: Brevis, integrated with xExchange, can enable users to cryptographically prove their on-chain activity, leveraging trustless data computation of liquidity providers (LPs) and traders’ historical transactions. I propose implementing ZK proofs within xExchange to incentivize trading and xExchange activity. Similar to mechanisms employed by platforms like Uniswap, traders with higher trade volumes can produce ZK proofs, granting them discounts on transaction fees. This approach:
- Rewards high-volume traders, encouraging them to utilize xExchange.
- Increase volumes cause of a more trader-friendly environment**
Enhancing Metastaking through Usage-Driven Rewards: For metastaking, I suggest introducing usage-driven rewards to augment staking incentives for active xExchange users or participants in specific projects. By tying staking rewards to on-chain activity, we incentivize continued engagement and participation, increasing the network’s utility and attractiveness. Users may receive boosts based on xExchange and specific projects usage.
An example could be increased UTK metastaking rewards based on xMoney transactions volume or number.
Revamping Metabonding for Increased Adoption: Metabonding, while offering benefits to MEX holders, currently lacks attractiveness for projects due to its distribution mechanics. To address this, I propose a paradigm shift by incorporating usage-based rewards. Rather than solely distributing tokens based on XMEX holdings, I suggest a model that amplifies rewards for active platform users. For instance, users conducting transactions via the Utrust payment platform could receive enhanced metabonding rewards proportional to their transaction volumes. This approach achieves dual objectives:
- Incentivizes user activity, driving adoption of the platform.
- Makes metabonding more appealing to projects, leading to broader adoption and utilization.
Conclusion: By integrating Brevis with xExchange and implementing usage-driven incentives across various MultiversX products, we can significantly enhance on-chain usage. This approach not only rewards active participants but can also attract new users and projects, potentially increasing MultiversX ecosystem adoption.