Fuel Season 1 Claim Draft

Good call - maybe 100billy needs to be reconsidered too.

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Monthly milestone is a cool idea. Thanks for the feedback.

If you could design it, what would you make the milestones?

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Im not talking the numbers, thats up to the team but
Let’s say we have 5 month
Each month got 2 sub milestone = Base Milestone & Targeted Milestone.
Team could set what the base milestone should be (lower perp volume) WHILE Targeted Milsestone (High perp volume)

Goal is to hit Targeted milestone, but if not met then certain amount of DRIFT is set for that mounth (small amount of DRIFT BASED MILESTONE)
If perps target is met agreed DRIFT allo is set for that month

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I like your thinking. Could you give some example numbers to illustrate what you mean / what it would look like in practice?

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Lets say 7% DRIFT is allocated for the FUEL campaign
For MONTH 1
is allocated 1.4% from Total 7%
Base Tier Perps volume: $60m
Base tier alloc: 1% of Total 7%
Targeted Tier perps volume: $80m
Targeted Teir alloc: 1.4% of Total 7%
Allocation is released according to teir requirement
If by chance any of the month doesn’t meet either Base or Targeted perps volume, Foundation could seize that particular month allocation with option to reinject into following month or use for something else.

Do this for the rest 4 month, then use the data to distribute on the fiveth month.
These are all example number

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Cool idea. Appreciate you taking the time to share :handshake:

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Sure, happy to contribute
Mind connecting in X? It’d be great to add you to my smart network on X ser

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Of course. LMK your handle :+1:

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x.com happy to connect, appreciate you ser

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Some ideas based on the previous conversation:

  • monthly/weekly rewards, equal supply of $drift to distribute in each period
  • instead of volume, let’s use current period’s fuel emission as milestone unit: setting rewarded activites and boosts for each period makes it a more flexible incentive system.
  • call option-like rewards: (at least) two milestones for each period: base and target fuel emission. each one unlocks fixed % of current supply. if total fuel emission of the period is lower than the ’strike emission’ of base milestone, there’re no rewards for that period. if both milestones achived, full supply is distributed. if there is remaining supply, it’s added to the reward pool of the next period. this mechanism reduces inflation when things are slower and the same time creates incentive for users to come back to drift.
  • wallets are eligible if they earned fuel in last period
  • supply distributed linear but allocation is based on wallets’ weighted average of earned fuel, where current period has the highest and the oldest has the lowest weight. this way we can reward consistent usage.
  • instead of giving vested bonus for delayed claims rewards could be paid as staked drift.
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Lot’s of good ideas represented here. A couple thoughts in no particular order:

  1. Can we try to be clear on first principles for the FUEL program to avoid lots of questions following. For example: FUEL program intention is to have n number of seasons, over t period of time, approximating x amount of total token supply. Rather than an arbitrary 7% for S1, or any other quasi-arbitrary %.

  2. JUP 2nd airdrop provided a good roadmap and seemed well received, i.e. some level of tiering - primarily so vaults and MM’s don’t end up with 85% of the rewards. They get rewarded by their activities via fees and spreads - so the top tier should max out on alloation at some level. DRIFT accrues most of its economic value over time from increased organic actual user activity - which is what should be incentivized.

  3. Individual users have no ability to influence DRIFTS total volumes in a given period, therefore likely don’t care that much about bonus allocaitons related to aggreagate DRIFT volumes - because they can’t influence it. They care about maximizing their own rewads for their own activity.

  4. Consider maybe two tiers of vesting bonuses, 30 days to reduce imediate impact of ditribution (this worked well for initial airdrop) and something like meaningfully increased bonus for 90 days or 120 days - to incentivize genuinley long-term holder behavior

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Dear Drift Team, I believe all of your users truly appreciate that you are considering another drop, as it is crucial for product growth and user retention. However, there is one BIG issue with almost every crypto project: the tendency to make rules so complex that they counter and dilute the impact of a drop.

I’m not a developer or a technical person; my background is in social sciences. Perhaps that’s why I find these discussions artificial and unproductive. Crypto doesn’t need more complexity—it needs more simplicity. Look at Hyperliquid: they emerged from nowhere and properly rewarded their users instead of overanalyzing drop mechanics.

Given the new US government regulations, alternative ways to reward users will likely be necessary in the future. e.g.Surprise your users—drop a small amount but do it more frequently. Don’t announce a drop five months in advance; instead, keep it fresh and unexpected. Cheers.

“In game theory, as in life, complexity is often the enemy of strategy. John Nash’s equilibrium concept showed that the best outcomes arise not from convoluted tactics but from simple, stable choices where no player has an incentive to deviate. The power of a strategy lies not in its sophistication, but in its clarity.”

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Great feedback, restless. Appreciate you taking the time and agree with your point on simplicity.

Great quote at the bottom.

  1. Great point, the other side of that would be: how do we ensure flexibility and not paint Drift into a corner? e.g. flexibility for different or bigger (or smaller) programs in future.

  2. Good point on distribution. There’s a chicken and egg problem here – without market makers, organic users don’t have liquidity to trade against. In the current proposal, both users and MM’s are treated equally. Penalising or punishing MM’s or larger users by capping could result in a situation where there is less liquidity for individual users to trade against and therefore end up losing out over the long run.

  3. interesting point around individualised incentives as opposed to community (aggregate) incentives.

  4. I like this suggestion!

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Great suggestions. FUEL targets is a really cool idea for milestones, I really like the staked drift for delayed claims concept too. Appreciate you taking the time!

simplicity and diluting value through uncertainty is an interesting idea, great feedback

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i agree with a fair few points made here.
10% would be a more fairer airdrop in my opinion.
Also a max cap of tokens and a min cap would be nice. In the spirit of decentralization this would be good.
Also believe stakers should be rewarded. Maybe a tokens staked* duration can be added as a multiplier.
Finally i believe there was a bonus allocation for liquidated accounts last time, i am not sure how that was done, but something similar would be nice.

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Looks like a balanced approach - would be interesting to expand on the concept of vesting part of the amount to get a larger portion of the pie (i.e. more multi-tiered system, the longer you vesting, the higher the bonus, going for periods longer than 30 days).

Important also to commit to a date, avoiding further delays (first was May, now os June). Having a clear fix date worked very well for the original airdrop since gives traders a reason to focus their activity on Drift for that period.

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