Incentives
Subject to discussion with the Witnet foundation. Proposing for 25,000,000 WITs to be allocated for liquidity provision incentives (this is equivalent to 1% of the total WIT supply). This is an alternative to paying for listings on centralized exchanges. Let the community provide a market for WIT tokens, and incentivize them.
WitSwap administers an incentive programme for liquidity provision relation to Witnet. This is an operation independent from the Witnet foundation, but is only enabled thanks to the generosity and support of the Witnet foundation.
These are the key principles of the incentive programme:
Zero administrative cost: All WITs supplied by the foundation for the incentive programme are ringfenced and utilized solely for the programme. There are no administrative costs applied.
Focus on short-term development of deep liquidity for WIT-related pairs: All WITs supplied by the foundation will be fully distributed within a 6 month period (~26 weeks) of the functionality launch (see below).
Incentivizing LP provision for both swap functionality (e.g. Uniswap/Sushiswap) and lending/borrowing functionality (e.g. Aave). Under the latter programme, our intention is for WIT to be widely accepted collateral on lending/borrowing platforms. Borrowers of WIT may find a temporary source of WITs that can be deployed to nodes.
67% of the WIT incentives will be directed to the following LP pairs:
WIT/USDC
WIT/ETH
33% of the WIT incentives will be for the LPs and borrowers of WITs on a lending/borrowing platform (to be identified/developed).
For the WTI incentives, they will be distributed in a declining fashion over the weeks.
Time
% of WITs
Total WIT incentive
Month 1
40%
[ ] WITs
Month 2
25%
[ ] WITs
Month 3
12.5%
[ ] WITs
Month 4
10%
[ ] WITs
Month 5
7.5%
[ ] WITs
Month 6
5%
[ ] WITs
The generous grant by the Witnet foundation is recorded in the following transaction address.
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