Proposal: 2nd Chance Airdrop

CIP: [to be assigned]
Status: Proposed
Author(s): @Newbete4300
Discussions-to: Discussion: Second Chance Airdrop - #28 by Mo123
Created: 7/18/22
Quorum: of circulating $vlCXD supply / 50% of voting $vlCXD must be in favor of the proposal.

Simple Summary

Proposal to give qualifying wallets access to a $vlCXD token airdrop allocation.

Abstract

If accepted, this proposal will authorize the core development group to perform the following:

  1. Snapshot qualifying wallet addresses
  2. Activate an airdrop claim UI to allow qualifying wallets to complete the airdrop process
  3. Additional Parameters:
  4. 100% of tokens are locked for 30 days
  5. 90% of tokens are locked for 60 days
  6. 80% of tokens are locked for 90 days
  7. 70% of tokens are locked for 120 days
  8. 60% of tokens are locked for 150 days
  9. 50% of tokens are locked for 180 days
  10. 40% of tokens are locked for 210 days
  11. 30% of tokens are locked for 240 days
  12. 20% of tokens are locked for 270 days
  13. 10% of tokens are locked for 300 days
  14. Deactivate the airdrop claim UI after 60 days

Motivation

About ⅓ of the available tokens were unclaimed. Providing a 2nd chance would allow those who missed the first airdrop to redeem their tokens, as well as grow the new community

Specification

Overview

This proposal suggests an airdrop be set up for 60 days. To prevent a sell-off after the airdrop and increase utilization of the project, a percentage of these tokens will be progressively unlocked every 30 days.

Rationale

Based on community discussions, the following benefits were identified for CortexDAO to propose and approve this airdrop:

  1. Allow those who missed the first airdrop a second chance to receive an airdrop
  2. All of these tokens are locked initially
  3. 10% of a wallet’s total airdropped tokens will become unlocked every 30 days

Also, from the community discussion, the following concerns were identified:

  1. The 2nd airdrop tokens may be dumped immediately, resulting in a significant price drop. To reduce the likelihood of this, tokes will be periodically unlocked after 30 days, thus allowing for more Cortex participation as well as placing a barrier for an instant exit.

The solution provided in this proposal should adequately balance both the benefits to CortexDAO along with the concerns presented by the CortexDAO membership.

Technical Specification

  • A qualifying wallet is a wallet that satisfies ANY of the following conditions:
  1. Qualified for the first airdrop
  2. Did not claim their $vlCXD tokens
  • The core contributing development group will take a snapshot of qualifying wallets.
  • The following criteria determines how many $vlCXD tokens a wallet can claim:
  1. Quantity is determined exactly the same as the 1st airdrop
  • The core contributing development group will activate an airdrop claim UI to allow qualifying wallets to complete the airdrop process.
  • The airdrop process will require $vlCXD claims to be vote-locked for a minimum of:
    • 100% of tokens are locked for 30 days
    • 90% of tokens are locked for 60 days
    • 80% of tokens are locked for 90 days
    • 70% of tokens are locked for 120 days
    • 60% of tokens are locked for 150 days
    • 50% of tokens are locked for 180 days
    • 40% of tokens are locked for 210 days
    • 30% of tokens are locked for 240 days
    • 20% of tokens are locked for 270 days
    • 10% of tokens are locked for 300 days
  • The core contributing development group will close the airdrop 60 days from when it becomes available.

Voting

  • FOR: Approve a new airdrop allocation of $vlCXD tokens to qualifying wallets
  • AGAINST: Do not approve a new airdrop allocation of $vlCXD tokens

Copyright

Copyright and related rights waived via CC0 1

6 Likes

How would the locking mechanism work in the context of a wallet that already has a CXD lock associated with it?

I realize I’m an unusual case. I have some APY timelocked in my cold wallet. I never claimed it, because the gas fees would have been larger than the value. Since then, I claimed CXD with my hot wallet, moved it over to my cold wallet and time locked those CXD.

Should this proposal go through and coincide with very low gas fees, I would like to claim CXD, but would like it to have it’s own timelock duration, or join (but not extend) my current CXD timelock (which is well in excess of 300 days).

Thank you for the proposal. I am no expert but I second this.

I am for this proposal

1 Like

I disagree with the length of the airdrop. 60 days is way way way too long so I will be voting against this proposal of it goes live. The first airdrop was 30 days and most people claimed then why should we allow 60 days for probably only 10 people to claim CXD? It should be 3 days, a week maximum imo.

2 Likes

I suggest several changes to this proposal:

Change all references of $vlCXD to $CXD
In the original airdrop, people received $CXD based on $APY. This should be the case for this airdrop as well.

21 day claim period
60 days is much too long to claim this airdrop. This would be twice as much time as the original claim period, which is unfair to the people who followed the project closely and claimed the first time.
While I want the claim time to be shorter than the first time, I don’t want it so short that people might legitimately miss out. There are real life events that could stop people from claiming for one or two weeks. I would hate to see people miss out on the airdrop because of a legitimate real world problem.

Add six month waiting period before 10% release schedule
The tokens should be locked up for at least six months to make sure people don’t dump immediately. Also, a staggered release schedule over 10 months helps mitigate sell pressure.

Snapshot: ~2.71 $CXD per $APY held since April 19th 12:00 AM EST
The goal is to help people who missed the airdrop and have been continuing to hold $APY, waiting for a second airdrop. The airdrop should not help people who sold their $APY tokens during/after the airdrop and now want to get additional $CXD tokens as well.
The beginning of the first airdrop should be the snapshot time/date, as any buying and selling after the airdrop started may lead to gaming the second airdrop price economics. If we snapshot before the airdrop started, everyone is left on an equal playing field.

No bonus $CXD for locked $APY tokens
The second airdrop should make people whole, without giving extra bonus rewards. It should not give additional bonus $CXD, as this is unfair to the people who paid attention to the first airdrop.

No $vlCXD awarded for $CXD tokens
Again, the second airdrop should make people whole, without giving extra bonus rewards. $vlCXD was awarded as a bonus for the first airdrop. For the second airdrop, people should only get $vlCXD if they make the choice on their own to lock their $CXD tokens when they become available.
A second reason to not award $vlCXD is that there may be tax implications for the profit sharing, and that decision to deal with this tax issue should be left to the individual.

3 Likes

I feel this is a really good answer to the overall problem. I am happy to accept both 60 day and 21 day options, however I would side with 21 days. I feel this addresses:

  1. People that really believe in the platform but missed the first one.
  2. People that did miss it but still want to be part of the project are or at least should be on the forum now.
  3. Fair to both the people that did follow it closely and the people that missed out.
2 Likes

I agree with these conditions. Especially, with a snapshot prior to the start of the first airdrop. Also, to get a chance to the second airdrop, those tokens should have been hold from the snapshot date till now. Because someone could have had X $APY tokens, sold them at a higher price and, then, buy them again a way lower price.

I second this proposal. Ive been holding APY tokens and did not know about the air drop until now. I would like to be able to claim tokens if I could!

1 Like

I think the migration to APY to Cortex should be permanent for anyone who was holding APY on or before the snapshot date (April 19th).
The main reason I think this is because the APY platform was specialized in stablecoin investment. Many people who use stables and pools like this might not check very often to see if they need to participate in activities to ensure their investment is migrated to a new platform. Also, sometimes things happen in real life that kind of knock people off the space for several months at a time. When they come back to a temporary event that was missed, it will not sit well if there is not a publicized 2nd chance.

Please don’t take this wrong, as I can scroll back through the media channels and NOW clearly see all the work that was done for the migration event, BUT I would also like my suggestion to resonate with anyone who is sitting on the fence about this issue.

My first transaction using APY tech was 522 ago and I can show my (tiny) wallet to anyone who doesn’t believe me.

2 Likes

I agree that people should get CXD just as others got in the first airdrop, and that this language should be changed in the proposal.

Most of those who will claim will probably do it within the first few days. That said, we should just give them a full 30 days to claim, because it’s “fair” and nobody can debate that since it’s what people had the first time.

No lock up. Community members are from all over the world. The economic situation in some places is straight up dire at the moment, we should let those who need to claim and sell asap the right to do so. Price might take a temporary hit, but so be it.

I can second this motion as well! The air drop should be automatic. My APYs are old too, over 600 days heh.

1 Like

was there a lock up period for the first airdrop or why is a lock up period suggested for the second airdrop?

Interesting discussion. First off, thanks for taking the time to create this thread for discussion @Newbete, and for everybody else for participating. Together, we will be able to scale the DAO much quicker than before.

Some things we need to flesh out further to make this a complete proposal. Consider this food for thought, curious to hear some discussion on the original proposal above, and the following:

Interesting concept to stagger the unlocks on a pseudo vesting schedule. I understand the intent is to cushion any major sell-offs from those who liquidate over time, rather than in one lump sum. However, it’s not currently possible to create separate vlCXD locks for different durations.

I’m not a dev, but I believe implementing this type of unlocking schedule adds much unnecessary complexity and development time that the core developers are better-served spending on core developments, such as the in-progress Convex Index dashboard.

Instead, I suggest proposing a specific unlock date, where any CXD claimed will be claimed as the proportional vlCXD until the unlock date.

The 1st airdrop allowed users who already locked APY to claim an additional 50% amount in vlCXD. Should the bonus still be offered?

To answer some queries about why you wouldn’t want to keep the claim UI open indefinitely: any development tool requires either upfront or ongoing maintenance and potentially adds an additional attack or exploitation vector. Do we really want the devs to spend resources on building and maintaining this airdrop indefinitely?

Thanks again for taking the initiative and time to draft the first ever true Cortex airdrop proposal. @Newbete and thanks to the community for the thoughtful discussion.

I understand your position, however, having an ongoing (indefinite) airdrop requires developer resources and creates an additional security risk/attack vector.

The first airdrop had a lockup for those who had locked APY. The claimed CXD were then locked for the same duration as the APY lockup, with a 50% bonus (as a reward for locking, demonstrating long-term commitment).

so holders that have no locked up APY tokens and missed the airdrop nr. 1 should get punished with a one year lock up period?

Thanks for all the feedback. For communication purposes and timeline expectations, I’ll probably not be able to advance this until the week is over, as this is the peak season for my work.

Thanks again

Yes, and its fair. Current CXD holders have the option of rejecting second airdrop since it will reduce circulating supply and help token price. However, most CXD holders are supporting a second airdrop in good faith despite their loss as increasing circulating supply will depress token price.

Likewise, second CXD airdrop aspirants should be willing to compromise and should not hope to get the second airdrop with exactly the same conditions as the first airdrop.

Let’s also be aware that if we don’t get a second airdrop then the same very people will not be supporters. The last thing this project needs is negative reviews and feedback…. And honestly I also understand them. They invested and for whatever reason they did not follow the project continuously only to realize that one dag that whatever they invested is now gone.

A second AirDrop will provide credibility and at least one will be able to communicate that a second chance was given.

It’s in everyone interest.

3 Likes

I have been holding APY for over a year and was really rallying for the project to be successful, but had to take my eyes away from the crypto space and unfortunately didn’t get the details of the airdrop. I also have not heard of an airdrop being a manual process before, other airdrops I’ve had have been automatic based upon your holdings in a wallet, so I wonder why this wasn’t the case for APY? Now I am aware of the change to CXD I will be holding the tokens I can exchange.