I wanted to talk a bit about how the Community Activity rewards are currently structured. I’ve included a screenshot here from $SKOT coin. Shoutout to his skills as community dev!
Note that the large “buy” has been updated to read “rewards”, but I’m a bit rushed here to take another screenshot.
What I wanted to highlight in this screenshot is that the community rewards drops appear to be incentivizing users and RLY holders to chase community rewards with low-risk, high yields that eclipse the yields provided by the LPs.
I could be be very wrong here if there is some new utility that $SKOT has introduced which is where these purchases have come from, but I think one can observe similar (and quite rational) behavior in other coins offering high yields each week. Also possible that there is no gaming of the system happening here and I’m missing some critical element! However, I’ll be very surprised if there isn’t a meaningful amount of coins converted out to RLY late Saturday afternoon to capture the rewards + gains from other users jumping in behind after those same rewards.
@smalldogg @KevinChou both discussed possible next steps, and the ability to easily monitor the current reward structure for gaming of the system. What can we do next to improve the system if we feel this is suboptimal? Does it start with modifying the way rewards are accumulated? Disbursed? Or by introducing some modifier or additional rewards…
Perhaps the rewards could accumulate weekly, but be distributed daily over the following week? Would love to hear more about what we’ve learned (data perspective) from the first weeks of rewards rolled out. Total Rewards distribution by creator might be interesting, and looking at that $ amount relative to donations or any other proxy we may have beyond CC purchases for fan engagement.
Are there other ways we can modify the community rewards like with a cap on the rewards based off some multiplier of donated/staked/holding for duration of coins that would more accurately reflect the types of transactions I might equate more closely with “activity.”
A few thoughts, and hope to hear more on CAR part deux based on the discussions and planning you’ve had internally. Welcome further thoughts from the community as well!