RxDAI/🍯 Pair LP for Honeyswap Liquidity Strategic Partnership

🌿 Proposals
#1

Proposal Information

Proposal description:
This proposal would allocate 75 HNY to the r/xdai treasury wallet for immediate staking into the Honeyswap RxDAI/HNY LP crypto pair.

Proposal Rationale

Reddit is the definitive home for long-form crypto discussion. Community tokens, coupled with a DAO governance architecture, represent a well-regarded and growing movement among blockchain enthusiasts. There is no more robust community epicenter than Reddit so it’s only befitting that xDAI, and 1Hive as its most well-known blockchain innovation studio DAO, take a stake in this growth, both to foster xDAI-related innovation, building to the project’s visibility and goodwill, but also to keep the thirst for HNY robust.

With a HNY base crypto pair, those who wish to stake their r/xDAI airdrop tokens, RxDAI, will necessitate buying a complementary amount of HNY, further increasing demand for the token. An appreciated HNY affords further resources for HNY leadership to more aggressively scale compelling projects like Celeste, Gardens, and other exciting swams.

Existing HNY holders should consider this proposal because innovation and aggressive use cases represent the lifeblood of crypto projects. The trend in the last few years has seen the commodification of blockchain tech, e.g. Uniswap V2, and the community, e.g. Sushi, Pancake, etc, becomes often as valuable as the underlying tech. The birth and scaling of the airdrop is a recognition of the value of the community and to reward early adopters and influencers who trumpet the utility of a project they themselves use, not to shill but to inform. This further incentivized, through airdrops, provides a positive feedback loop where these early adopters are even further ingratiated to a project that recognizes their contributions. They are then further encouraged to trumpet a project’s success and, now as a stakeholder, see to its swift scaling.

Team Information (For Funding Proposals)

/u/ScarlettBurgan - Mod of r/xDAI, r/Fund, others. Solidity Dev.

/u/BrooksKoepka/ - Mod of r/ETH, r/PGA, other scaling subreddits. CS Professor. @rekt on Twitter.

/u/Mojmir_R - Mod of x/DAI, Operator of the official xDAI Discord

Expected duration or delivery date (if applicable):
Immediate deployment once allocated into the Honeyswap RxDAI/HNY LP crypto pair.

Skills and previous experience in related or similar work:
Years of collective Solidity, coding experience on L2 EVM platforms and Solidity-based crypto projects.

More detailed description of how funds will be handled and used:
HNY will be matched with RxDAI, sourced from the dev team, and added to the RxDAI/HNY LP. All RxDAI has been airdropped as part of a fair launch based on subreddit activity.

Treasury Wallet
0xA230a1c91C640dA7A947C23a889a3bD68A171915

Key Resource Links:

https://www.xdaichain.com/media/social-media

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#2

What is the use case for RxDai?

#3

I like the idea of funding communities, especially for things like decentralized crypto communities but have you suggested asking for a main pair staking by STAKE? the reason why i say this is because the reddit group is more correlated with that network then the HNY community

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#4

Hey there, we have no scope on what the RxDAI token does whatsoever. If you intend to ask for a
relatively big amount of HNY, which is around 48k USD at this point. You should at least explain the token use case and how would that benefit the 1Hive community.

At the moment, I’m seeing this proposal has: please give us money to pair it with our token that has no use case.

If you would like this proposal to have any chance to pass, you have to give more info than that.

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#5

Can you explain more information about RxDai token itself? Currently, what i see of this token is just a rewarding token for good posts under r/xdai with no value or use cases. So with the more information about RxDai token, the community will have no doubt to supports this proposal.

#6

The use case would fall under the category of a Community inclusion currencies (CICs), with the community being members of the r/xDAI subreddit community. The scarcity comes from the monthly airdrop award of the tokens for post and comment contributors, a la r/cryptocurrency and r/FortniteBR. The demand is by partnering organizations utilizing these tokens to further their brand’s message, as well as speculators–the case for all crypto in an ecosystem affording such readily available leverage. These Reddit communities, both of whom selected xDAI/Honeyswap as their L2 blockchain of choice, have done much to inspire the imagination of the 2.9 and 1.5 million, respectively, member base as to the possibilities that a DAO or a community token affords.

#7

This is also a compelling argument with a strong thesis, but I think the five reasons why we didn’t immediately go to Igor & the founding dev team are five-fold:

  1. Honeyswap is the de facto home for Reddit community tokens. Future scaling for xDAI is best positioned alongside the 1Hive DAO if it’s going to make a meaningful splash when the DAO and community token tsunami of adoption begins to more materially take shape.
  2. 1Hive has historically been the most well-regarded place where xDAI-specific innovation tends to spring so keeping such ambitious projects within this blockchain studio-type environment, tempered by the crucible of questions from the forum or discord that I know this any other promising idea must ensure to emerge as refined as does.
  3. The xDAI dev team is largely directed by the leadership efforts of Igor Barinov and gets trumped by his interviews and incisive commentary. This subreddit of r/xDAI is a true DAO, in the 1Hive tradition. This is more befitting of this type of proposal for an organization that almost exactly mirrors its organization. There are visible community leaders, like Luke, but it’s more of a consensus council in the cafe, with people pitching ideas and testing out code in front of everyone for commentary.
  4. There are many projects that 1Hive spearheads, but there’s a school of thought that worthwhile projects should be nurtured in a Y-combinator type fashion, if they’re well thought out and meticulously planned, such that the collective press and discussions surrounding these swarms or arms-length projects all add to the 1Hive DAO luster, and, of course, the price of HNY, AGVE, etc.
  5. The visibility and liquidity is exclusively focused on Honeyswap, building the increasing visibility that this project is well due, and the demand for HNY. Honeyswap has some of the most talented devs in the L2 ecosystem so 1Hive doesn’t need this modest project to scale, but such projects of this ilk, especially if tied to the HNY crypto pair, speaks to the tradition of innovation that is characteristically 1Hive.
#8

Sure, I’ll also add to the five points proffered to D0SH to say that the perception that this proposal is light in the details department is reasonable relative to the well-built out explanations I routinely see for swarms or proposals. I’m seeking to remedy this through compiling Reddit posts and crafting it this evening into a formal white paper for the token more easily digestible for those seeking to get a baseline understanding of what RxDAI is attempting to achieve. Also, to speak to the utility of RxDAI or the tokenomics so it’s more readily apparent for something with just a baseline understanding of Reddit, xDAI, and a DAO.

#9

I’ve been long-winded with some of my answers for Felix, D0SH, and Curley so I’ll be pity in breaking it down to:
1M RxDAI monthly for posts/comments with a mod-arbitrated award system that rewards quality posts and commentary over memes and post-bots to token farm
Sponsors with an eye on advertising to r/xDAI users are given media kits denominated in RxDAI. They’ll buy RxDAI directly from Honeyswap for said advertising packages. These RxDAI tokens awarded to the DAO for these promotional efforts will be burned, serving to keep the token total at bay as well as create that upward pressure on RxDAI as both the appetite for ads increases or the r/xDAI community increases, with keeping the same CPM. If you haven’t seen the CPM offered to crypto influencers like Blockworks for crypto-specific media companies then I can tell you with certainty that it’s sky high and dev, especially blockchain dev, eyeballs are some of the most coveted in the tech ad industry. Crypto news site Blockworks expects $8-10 million in 2021 revenue

#10

/r/ethtrader asked for HNY mostly to spur cooperative ventures and some compensation for people to bring that community infrastructure to xDAI and for incentivizing the Honeyswap DONUT-xDAI LP. DONUTs and r/ethtrader community is the first and oldest and we have been on Honeyswap for 8 months now. We also didn’t ask for much, 10HNY as compensation partly for my own work brining them here and carl to do the developmet work, and 10HNY for either future collaboration work or other things. We still have not even spent that and we already have 50K USD TVL DONUT/xDAI locked in the Honeyswap DONUT-wxDAI LP. (Doesn’t sound like much but we ALREADY have been paying 1Hive Honeyswap fees via DONUT trading for 9 months now).

The idea that you would just ask for HNY to pair in a LP to price support RxDAI seems quite a bit out of scope. /r/ethtrader already has incentivized it’s token via LP farm with DONUTs for the DONUT-wxDAI Honeyswap LP.

Put simply as a 1Hive and reddit member I am generally going to vote no to pairing HNY with other tokens just to provide LP price support for reasons I have discussed both on discord and the forums.

I want to be clear. We’d love for you to come to Honeyswap simply because a good amount of the community on xDAI is basically 1Hive members as well as a lot of reddit people so it makes sense. I want to encourage you guys to come but not by ponying up 75HNY to do a LP pair. Not unless 1Hive is going to get something in return (say 5% of RxDAI) and even then I’d have to think about it.

My other problem with this proposal is that you didn’t bother to put it up for pre-proposal discussion. AFAIK you just launched this on pretty much the same day without inquiring of the community assuming somehow magically it would pass.

When I put up the /r/ethtrader proposal I gave it some discussion time to at least try to flesh out some of the issues, we did a community call with 1Hive to discuss it. Not like the proposal got unanimous support to be sure, but we did do a certain amount of leg work, and discussion before putting up the proposal. I personally spent a good chunk of time just trying to convinced the r/ethtrader DAO to move in the xDAI direction.

I even worked out a ROI based on Honeyswap trading that indicated the 20HNY would be paid back via Honeyswap trading within at little as 6 months and as long as 24 so in the end 1Hive would likely get its money back and then some because we had already decided to incentivize the DONUT-xDAI LP pair with 50K/week DONUTs.

Which would bring me to my suggestion.

If you want to build LP - why not put some of that RxDAI to work by sponsoring your own Honeyswap RxDAI - xDAI LP farm to incentivize your own community to put up LP into Honeyswap. Do that and I might be a little more receptive to a smaller proposal (say 10HNY) to match your community committing to incentivizing the Honeyswap RxDAI - xDAI pair with RxDAI. Also there already was discussion about /r/ethtrader giving back DONUTs for things like quests, and gardens, etc. are you willing to do the same?

I honestly would encourage your team to get involved and learn about 1Hive before just launching a 50K HNY proposal to give your RxDAI token value by LP pairing without even the remotest hint you guys will be incentivizing your own liquidity.

I honestly have not even heard of RxDAI while I am familiar with /r/cryptocurrency not at all familiar with r/xDAI and don’t even see the pair on Honeyswap. RxDAI is literally less than 1 day old as far as I can tell.

I would suggest you guys just pull the proposal and start a real proposal forum discussion thread open to the 1Hive community or face the existing proposal being challenged in celeste.

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#11

I think this is a reasonable request and I would like to further the discussion on this as the subreddit further takes shape with these airdrops.

My other problem with this proposal is that you didn’t bother to put it up for pre-proposal discussion.

I now see that this is more de rigeur than a suggestion so I apologize for not going down this tried-and-true pathway.

we already have 50K USD TVL DONUT/xDAI locked in

That’s some nice traction and coming in with that amount already staked into Honeyswap looks like a good faith effort that I’m sure was well-received.

I want to be clear. We’d love for you to come to Honeyswap simply because a good amount of the community on xDAI is basically 1Hive members as well as a lot of reddit people so it makes sense.

I appreciate this thoughtful sentiment, and please take to heart that I was not being flip and I apologize if this appeared to be rushed or hasty in its design or execution.

/r/ethtrader giving back DONUTs for things like quests, and gardens, etc. are you willing to do the same?

Absolutely. I’m a daily r/ethtrader visitor and appreciate the vision you’ve imparted to this DAO conversation through your subreddit’s impressive scaling.

If you want to build LP - why not put some of that RxDAI to work by sponsoring your own Honeyswap RxDAI - xDAI LP farm to incentivize your own community to put up LP into Honeyswap.

Would love to do that. I didn’t see any projects actively farms actively pollinating so i didn’t know of this was defunct.

start a real proposal forum discussion thread open to the 1Hive community

Taking this thoughtful advice. Thank you for the in-depth insights to all aspects of this proposal.

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