[RFP] Request for Proposals: Develop a Keyper Incentive Mechanism and (delegated) Staking
Shutter DAO 0x36 members have voted to start a Request for Proposals process for contributors to apply to develop the mentioned incentive and staking mechanism.
Shutter DAO 0x36 will disburse up to 50,000 SHU tokens and 25,000 USDC to the selected contributor of the RFP to develop the incentive and staking mechanism.
The proposals should only focus on the technical aspects of developing the necessary smart contracts and front end and ensuring hosting of the front end. They should be agnostic (and fully configurable by Shutter DAO 0x36) regarding the economics, e.g., staking amounts or the amount of ETH or SHU rewards over time.
A separate proposal needs to be issued and discussed for the economic concept of the incentive and staking mechanism.
Goals
- Encourage Keyper Participation: Provide an incentive for keypers to participate in the network by staking SHU tokens and fulfilling their role.
- Enable Community Support: Allow SHU token holders to support specific keypers by delegating their SHU tokens, enhancing the network’s security and decentralization.
- Reward Long-Term Commitment: Offer rewards to both keypers and SHU token holders who lock their tokens and support the network over time.
- Counter Selling-Pressure: The upcoming unlock schedule on March 18th and the subsequent vesting period will create selling pressure on SHU. A staking mechanism can reduce this selling pressure.
Background on contribution
The mechanism that is going to be developed should cover the following pillars:
- Creating the technical possibilities for a reward system to distribute incentives, in the form of fees generated by the system (e.g. ETH) and/or Shutter Tokens (SHU), to Keypers for running and maintaining nodes.
- Staking Mechanism for long-term commitment by allowing the SHU token holders to support specific Keypers by delegating their SHU tokens, enhancing the network’s security and decentralization. Development of a rewards mechanism to lock tokens and support the network over time.
- Ensuring the mechanism is compatible with the Shutter Network’s existing infrastructure for seamless integration by any development team.
Implementation
Upon approval of this proposal by the Shutter DAO 0x36, the next steps involve a collaborative and competitive process to select the most qualified contributor(s) to develop the Keyper Incentive and Staking mechanism. The process is outlined as follows:
- Open Call for Contributors: After this proposal passes, a Request for Proposal (RfP) will be issued to the community. Interested contributors, including developers and teams with the requisite expertise in blockchain development and smart contract programming, are invited to submit their proposals. Each proposal should detail the contributor’s approach to developing the mechanism(s), including timelines, scope of work, and any previous relevant experience. Review and selection of the most suitable proposal by the Shutter DAO 0x36 through voting via Snapshot.
- Development and Submission: The selected contributor will develop the technical Keyper Incentive and Staking Mechanism, adhering to the agreed-upon timelines and milestones. Progress updates will be provided to the community as per the agreement/proposal.
- Contributor Selection and Funding: The selected contributor will then receive a disbursement of 50,000 SHU tokens and 25,000 USDC from the Shutter DAO treasury: 50,000 SHU tokens at the beginning of the contribution period and 25,000 USDC after the submission and quality assurance of the work. All SHU tokens are subject to the same lock-up period as the genesis allocation.
- Final Submission and Disbursement: Upon completion and submission of the work items, the contributor will present their work to the Shutter DAO for review. Upon satisfactory review and acceptance of the work, the full disbursement of funds will be made to the contributor. Approval of the funds will be voted via Fractal by Shutter DAO 0x36.
Example high-level technical requirements (for staking)
- Keyper and delegate staking front-end
- Purpose: Allows Keypers and SHU holders to deposit and withdraw their staked SHU amounts and implements a simple dashboard to understand the general economics of the system
- Needs a way for the DAO to operate/pay for hosting, i.e. on IPFS
- Keyper Staking Contract
- Purpose: Allow Keypers to stake SHU tokens as a commitment to their role.
- Features:
- Uniform staking requirement for all Keypers.
- 6-month lock-in period for staked tokens.
- Can be funded by Shutter DAO with ETH or SHU for initial rewards.
- Keypers should lock for X months, after which they can withdraw their principal and earn a share of the fees generated by the system in the native token (e.g. ETH) and/or rewards in SHU based on time locked.
- Allows withdrawal of earned rewards over time and full withdrawal of staked amount after 6 months.
- Integrated with DAO governance for validating new Keyper sets.
- Delegated Staking Contract
- Purpose: Enable SHU token holders to delegate their tokens to keypers.
- Features:
- Token holders can withdraw their principal and earn a share of the fees generated by the system in the native token (e.g. ETH) and/or rewards in SHU based on time locked.
- Supports the community in choosing and backing Keypers, fostering a more engaged and participatory ecosystem.
Example Dashboard mockup (just for reference/context, the real one should be more elaborate):
Delegated and Keyper staking might require many transactions and should be accessible also to smaller holders. This could mean an L2 or Gnosis Chain deployment could be advisable.
Notes to contributors for submitting proposals
- Only one contributor will be selected to fulfill this request.
- The selection will be done by the Shutter DAO 0x36 members via a Snapshot vote.
- Please use the rpf-proposal tag in your submission for identifying it as such.
- The initial proposal did not set a deadline for submissions. Currently, before a deadline and start of a vote is proposed, you should submit your proposals ASAP, within 10 days of this post is recommended.
Original proposal by @jul1an:
Original vote on Snapshot: