DIP-2: Use Forfeited and Unclaimed DRIFT to launch the Drift FUEL Fund

General
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Name of the Proposal: Use Forfeited and Unclaimed DRIFT to launch the Drift FUEL Fund.

Category of the Proposal: Technical

Overview:

Currently there are ~8.2MM in unclaimed and forfeited DRIFT from the initial DRIFT claim (found here: https://drift.foundation/).

This proposal suggests using the ~8.2MM unclaimed and forfeited DRIFT to initialise the Drift FUEL Fund. This proposal notes the comments made in the previous discussion thread (found here: DIP-2: Launch an Active Staking Rewards (ASR) Program - #10 by andrewsaul) and incorporates the feedback provided by the community.

FUEL Fund:

This proposal proposes using ~8.2MM DRIFT to initialise the Drift FUEL Fund. The objective of FUEL is to recognize and award usage of the protocol. The FUEL fund would serve as a source to fund the FUEL program. Governance is a key lever in driving the future growth of Drift and it is crucial that governance power is distributed to the protocol’s most active and core users.

The ~8.2MM DRIFT used to initialise the FUEL Fund will be sent to the security council.

The distribution methodology of the FUEL Fund is to be decided through governance at a later date in order to ensure community alignment. The ~8.2MM DRIFT will just be used to initialise the fund so that further rewards can be added in the future through other proposals, such as the one suggested by Proph3t here [DIP-2: Buyback 4,000,000 DRIFT].

What is Fuel?

FUEL is Drift’s first on-chain loyalty program for Driftoors designed to recognise those who continue to use Drift and are active participants in its mission. Your activity won’t go unrecognized — whether you’re actively trading perps or staking you can now kick things into high gear with FUEL.

The FUEL program has been designed to take into consideration a broad range of activities throughout the Drift ecosystem. Your activity is represented with each FUEL you earn and you’ll be able to accelerate even faster with Activity Boosters.

More information here: Overview – Drift Protocol

6 Likes
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Really like the focus on distributing governance power to core users. Lots of questions about distribution but I guess that is down the line.

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Sounds great, I am collecting enough fuel for a trip to the noon :grinning:

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Learn some dang tokenomics and add a burn mechanism to the Drift token for God sakes. Who cares about this. So something to better the value of the token add an asset not to keep it as a gimmick token used only to vote on this drivel

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You know there are security laws and other considerations here right?

Aevo has a burn mechanism and look where they are. Barely moved the needle for them.

fwiw token has done spectacularly without any of these “tokenomics” so I’d say team is doing quite well honestly.

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How are we supposed to comment, when we have only vague idea what FUEL is?

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Forfeited rewards: yes, I think this is a great idea.
Unclaimed: no.

I’ve seen a lot of projects burn so many hours of support time and cause much unneeded grief for themselves by turning off claims.
Just leave the claims up. You were budgeting on them being claimed, there’s no extra effort by leaving them live.
Pulling them down will only cause more work.

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claims have already been turned off

10

I like this because it adds funding to fuel while allowing the community to define the specifics at a later date through a later proposal.

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What is the relationship between the DRIFT used and FUEL?

Is the idea that fuel acts as points which can be redeemed for DRIFT?

Perhaps there is an opportunity to make Fuel an SPL token to enable a community token for users that can have a budget of DRIFT for community initiatives and experiments. WEN for Jupiter is a good analog for this.

1 Like
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This is actually really interesting.

Tokenize the world anon