Creation of a Strategic Fund
This proposal aims to establish a Strategic Fund. The purpose of this Fund is to incentivise strategic actions to develop and grow xExchange and its ecosystem. The Fund will be managed by the Governance.
At start, the Fund will receive all undistributed farm rewards of xExchange, both those undistributed to date, valued at ~$2,290,356 as of 11/17/2023, and those to be undistributed each subsequent week.
This proposal aims to establish a Strategic Fund. The purpose of the Fund is to incentivise strategic actions to develop and grow xExchange and its ecosystem. The Fund will be managed by Governance.
This proposal only aims to establish the Strategic Fund, not to determine how it will be allocated. That will be the purpose of subsequent proposals.
Even though this proposal doesn’t aim to determine the allocation of the Fund, it is important to start imagining how the Fund could be used. For example, it could be used to:
- Offer attractive prizes for xExchange hackathons, such as the prestigious Battle of Yields competition.
- Reward those who aid in the testing of new and exciting features on xExchange, ensuring smooth and efficient rollouts.
- Support protocols that choose to build on top of xExchange, further enriching the xExchange ecosystem.
- Reward the community for implementing xExchange features or tools, further improving xExchange user experience and capabilities.
- Reward the community for creating high-quality content around xExchange, further increasing our presence and visibility.
- Burn more MEX.
There are probably many other great ways to allocate the funds of the Strategic Fund, and this will be the subject of subsequent discussions and proposals.
The first source of funding of the Strategic Fund will come from undistributed farm rewards.
A user who deposits an LP token into a farm earns base rewards and a part of the bonus rewards he is eligible to. This part depends on his energy: he earns 0% of the bonus rewards if has no energy and up to 100% of bonus rewards if he has sufficient energy. Moreover, he has 4 week to claim his bonus rewards. Past this time, he will lose them.
The undistributed farm rewards to go in the Strategic Fund are the bonus rewards that users were eligible to but didn’t earn because they either lacked energy or didn’t claim them on time.
To add the undistributed farm rewards in the Strategic Fund, an endpoint will be added to the farms. This endpoint will mint the undistributed farm rewards as XMEX locked 4 years and send them to the Strategic Fund.
As of 11/17/2023, 339.3 billion XMEX farm rewards have been undistributed, which are valued to ~$2,290,356. If you want to compute by yourself the undistributed rewards or get more up-to-date numbers, you can run this script: