Abstract
This proposal aims to optimize the allocation of rewards issued during TANIP1. We observed that a portion of these rewards remained undistributed because some users did not have enough TEL staked in the application. Although Arie’s TANIP may encourage more staking and reduce this reward evaporation, there remains uncertainty. Therefore, this proposal recommends redistributing the undistributed rewards to the top three fee stakers, according to a proportional split, to further stimulate user engagement and trading activity on the app.
Objective
The primary objective is to ensure that undistributed TANIP1 rewards are not lost but reallocated to the most active participants — the top three fee stakers. This initiative aims to maintain high user engagement, increase trading volume, and fairly reward active users, including those who may not have referees.
Rationale Optimizing Reward Distribution:
Since part of the TANIP1 rewards were not distributed due to insufficient staking, reallocating them ensures better usage for the benefit of the community.
Encouraging Activity and Volume:
Rewarding the largest fee generators will incentivize greater activity on the app and stimulate trading volumes, thereby strengthening the ecosystem.
Fairness Among Users:
Some users have benefited from large rewards due to the activities of their referees, even with little personal trading activity. This redistribution would ensure that the most active traders are also fairly rewarded, even if they have no referees.
Proposed Incentive Details Redistribution Scope:
50% of undistributed rewards allocated to the highest fee staker.
30% allocated to the second-highest fee staker.
20% allocated to the third-highest fee staker.
Eligibility Criteria:
Rankings will be based on fees generated during the TANIP1 period.
Only direct trading activity will be considered (excluding activities from referees).
Program Duration:
A one-time redistribution covering only the undistributed rewards from TANIP1.
Implementation
The TAO will find a suitable way for writing and implementing the smart contract (or appropriate backend code) that automates the distribution of the undistributed TANIP1 rewards based on the final validated ranking of fee stakers.
Financial Resources and Budget Objective:
To use exclusively the undistributed rewards from TANIP1 without requiring additional funding.
Cost Breakdown:
No additional cost beyond the already allocated rewards.
Next Steps
Obtain formal approval from TAN Council members.
Identify and validate the top three fee stakers.
Implement the reward redistribution mechanism through developer intervention.
Proceed with the reward distribution according to the proposed plan.
While the idea of distributing the remainder of tel rewards is a great idea, I don’t think giving it to the top three who have already made out pretty good is the best solution. I thought there was talk of just running the script again dealing out the remainder in the same percentage as your position. In that case everyone shares it with large stakers still getting a bigger % but everyone benefits all the way down the line
So as I said, on the one hand, some of the top traders don’t have any referrals. On the other hand, the portion of undistributed rewards should normally decrease drastically, so redistributing tiny amounts to all users (who already received rewards) doesn’t seem like a smart move to me. Rewarding the top 3 is pretty fun, and trader competitions are regularly held on exchanges.
Also, it feels like you’re trying to defend your own interests and rewards here. You should start opening up a bit.
It’s not for my interests at all. I know I will never be a top 3 and I’m sure most other people will feel the same as we have some heavy hitters who most likely will be at the top all the time. Spread the wealth down to the little guy to keep them interested and participating.
I think rewarding the top 3 is wrong - since they have already received the most benefit.
If you want to encourage competition and increase activity the “competition” should be directed at the most people .
If you look at a bubble chart of rewards from period 6 …you see the highest density is at the bottom (those who receive less than 40,000. That’s the pool where competition would be greatest. Lets further reward that group - top 10 in that group each get 10%. !
I’d have to agree with the others sharing this sentiment here. Giving more benefits to top 3 does nothing for incentivizing new people. I’d rather see these funds go towards marketing initiatives or pay for crypto influencers to discuss our projects
I guess I don’t see the benefit of rewarding on top of already large rewards the top 3 are receiving.
Furthermore, the goal of the tanip1 rewards is to incentivize trades (which it does accomplish). It’s important to note that the rewards are uncapped (there’s no max amount you can earn other than what you have staked) and percentage-based formula enables individuals to capture far more than their trading fees by being at the top of the transactions/fee generation.
This obviously will decrease as time goes on, but as others have mentioned, once other companies come online, they also will be part of the tanip1 rewards program. I highly doubt that any individual trader will outperform a whole platform on fee generation.
It would be much more desirable to run trading contests or social media contests to keep these unused rewards in the hands of individual traders. If not, doing giveaways for social media engagement would be an easy way to draw more people into the project.
I completely understand your point of view;
I want to emphasize once again that I’m only talking about the REDISTRIBUTION of undistributed rewards (which will hopefully become smaller and smaller over time).
I get it — you all want free money falling from the sky.
Personally, my only intention here was to redistribute this tiny remaining portion (which, from my perspective, doesn’t harm anyone) to those who worked hard and actually deserve it.
Now, let’s get to work — I’m excited to see what you come up with!
disagree that rewarding top wallets fosters any sort of competition, especially when the top 3 wallets have largly been the same and are earning more in kickbacks than they spend in fees for trading.
i’d rather see us fix the formula to just distribute all rewards evenly
