Ambire Governance Vote: Decide the Legends Rewards Distribution
The time has come for another governance vote: this time to decide on the rewards distribution for Season 0 of Ambire Legends.
It has now been just over a month since we announced Ambire Legends, an epic onchain adventure. Everyone who has been using Smart Accounts and registered in Legends has been earning XP for any actions on the 5 qualifying chains and moving up the ranks. The time has now come to look at allocating rewards for Season 0 (currently running) from the previously voted-on total reward pool of 195 million $WALLET tokens.
The community will have to decide whether to proceed with the proposed reward mechanism. Read on for the full details of the proposal.
Proposal overview
This governance proposal constitutes the first leg of reward distribution for users of the Ambire extension, which happens through Legends, our on-chain game.
The question is: Should we go ahead with the following reward mechanism for allocating rewards in Ambire Legends?
Voting options
- Yes
- No
Proposal details
A total of 20 million $WALLET will be distributed to Season 0 participants, which amounts to 2% of the total supply and just over 10% of the total reward pool for extension awards.
Rewards will be awarded at the end of each month and calculated using a formula that includes your Legends level (based on your XP earnings) and the equivalent of your balance in USD. The exact reward rate will depend on the length of Season 0, and the 20 million will be divided up to calculate the rate. The duration will be approximately 3 months, which may, at Ambire’s discretion, be increased to 5 months. If there are any changes to this decision, the reward rate will be adjusted accordingly for the following months in such a way that the total amount of distributed tokens is 20 million $WALLET.
Rewards will be paid out in $xWALLET (soon to be $stkWALLET). You can read more about the $xWALLET token and the transition to $stkWALLET. Once the rewards mechanism has been decided, we will provide additional information on how to claim rewards, how to unstake, etc.
Rewards formula
The weight (or proportion) of total rewards for each season per player will be calculated using the following formula:
Weight = Level x sqrt(BalanceInUSD)
Rewards will be distributed proportionally to those weights.
A user’s level is based on their XP using the formula level = floor(sqrt(XP) / 4.5).
BalanceInUSD will be calculated by averaging your balance across random time points in each week of the period. This is to ensure that users are incentivized to keep their balance high throughout the entire period. It will be calculated using the Ambire portfolio functionality as implemented in Github, so it will include all Ambire default networks and all automatically discovered tokens.
Example: If you are level 15 and your (BalanceInUSD) is $2,000, then your weight will be 670.82. Here’s how it looks applied in the formula: 15 x sqrt(2000) = 15 x 44.72 = 670.82.
The actual rewards will then be calculated as follows:
Your rewards = total amount of rewards x (your weight/sum of all weights)
Rewards eligibility
In order to qualify for Legends rewards, you must:
- Be using an Ambire v2 (extension) Smart Account, which has an existing Legends character minted on it.
- Be at least at Level 3 or higher.
- Have a total balance of at least $500
Proposal motivation
The opinions of the Ambire community are super important to us - now more than ever. We want to empower extension users to have their voices heard and to help us shape the future of Ambire Legends and the Ambire extension, too.
With the proposed rewards mechanism, we are aiming to ensure the following:
- Users keep funds in their Smart Accounts continuously (and not just add funds for rewards distribution, then withdraw)
- Rewards are issued directly to the users and automatically staked (rewards will be paid out in $xWallet, soon to be $stkWallet)
- We take multiple factors into account, not just XP, to ensure a fair and balanced distribution of rewards for different kinds of users
- Legends players are involved in the decision-making process for the future of Legends and the Ambire extension.
Voting eligibility
Anyone holding $xWALLET tokens before the snapshot on Jan 30th, 2025, at 15:00 UTC will be eligible to vote. Users who stake tokens after the snapshot will not be eligible.
Timeline
- Start: The voting period opens on Jan 30th, 2025, at 15:00 UTC.
- End: The voting period closes on Feb 8th, 2025, at 15:00 UTC.
How to vote
Here’s how you can submit your vote:
- Visit the proposal page on Snapshot.
- Connect your crypto wallet holding xWALLET tokens.
- Choose between the three options for allocating $WALLET tokens for the extension incentives.
Your input is key to shaping Ambire’s path forward and the success of the extension launch campaign, so cast your vote. Have ideas or feedback? Join the conversation on our Forum, Discord, or Telegram, and let us know your thoughts!