Shell Protocol

OVERVIEW Proposal Title: Incentive for veShell stakers Author(s): Kenny White and Aleeza Category: ShUIP Related Discussions: - DETAILS Summary Offer SHELL rewards to those who stake to the DAO and hold veSHELL. Link to Transaction Payload PR n/a Motivation The Shell DAO is brand new and doesn’t have many voters yet (users that staked SHELL aka hold veSHELL). We need more users to hold veSHELL to achieve better community participation in upcoming votes and make the DAO more decentralized. Vision Many DAOs incentivize staking governance tokens to the DAO (e.g., Curve, Balancer). Encouraging users to stake to the DAO is important because the more users that are involved in governance, the more robust and decentralized the DAO becomes. Furthermore, the unlocked SHELL token supply is starting out quite small. A single whale could co-opt governance during the early period of the DAO’s creation. Therefore, incentivizing early participation in the DAO is extra important for Shell Protocol. Specification Token type/amount: 500,000 SHELL tokens Plan duration: 154 days (5 months) The on-chain actions that will be tracked: Holding veShell How to calculate the reward based on the on-chain action: Every 24 hours, a certain number of SHELL tokens will be awarded to the holders of veSHELL. The reward amount will start at 930 tokens per day. Each day, the reward amount will increase by 30 tokens from the previous day. So on day 2, 960 tokens will be awarded to veSHELL holders. By the final period, day 154, the daily reward will be 5,520 SHELL tokens. The reward rate increases linearly each day so that the ratio between the daily reward and the unlocked SHELL supply remains constant over time. Figure 1 shows how the daily emissions increase over time. Figure 2 shows the cumulative emissions over time.