【ZIP】ZKFair's 10+ Billion-Dollar Blueprint: Community-Powered & Fairly Exciting ❗

As the “CEO” of ZKFair, the key objectives would be growth and retention. The ambitious goal of >$10bn requires a strategy that addresses the challenges of a 100% community-owned project without a traditional treasury for funding initiatives. Here is a my detailed plan and how I would address existing challenges:

1. Revenue Without a Traditional Treasury

  • The treasury can continue to grow through the retention of transaction fees: Ensure that this fee remains competitive with other existing L2s.
  • In addition to this, strategic partnerships could also create mutual benefit, potentially sharing revenue and other resources.
  • ZKFair could also charge fees to businesses or developers who plan to deploy a contract or require tailor-made solutions with technical support.

2. Product Focus

Short term: Territory
Perpetual exchanges can be analogous to expanding the surface area of ZKFair, by broadening the platform’s reach and appeal to a diverse set of users (traders and investors). These platforms attract a different demographic, looking to find short-term gains and high-leverage trading. Perpetual exchanges would increase the range of activities and opportunities available on the platform, thereby expanding its reach and “territory”.

Mid/Long term: Depth
On the other hand – yield generating products increase ZKFair’s stability and liquidity by adding volume/depth over time. These products deepen ZKFair’s value by providing more substantial/long-term engagement opportunities. Lending and borrowing for yield encourages deposits and time-locked assets which leads to increased TVL within the ecosystem. This appeals to users seeking passive income through interest earning to borrowers looking for liquidity without selling their assets.

:exclamation:3. Incentivising Token Retention

  • Staking rewards where users lock their tokens to earn rewards either ($ZKF or $USDC) can be generated through network transaction fees.
  • ZKFair should also implement governance participation incentives by offering rewards for participation in key decisions. The goal here is to encourage users to hold onto their tokens.
  • By introducing a loyalty program, rewards can be distributed for long-term holders, such as increased staking yields or exclusive access to new features. An algorithm can be used to determine a score through time and volume weighted loyalty. See attempted concept here:

Algorithm: Loyalty reward system for ZKF holders

Defining parameters

  • Time held (T): The duration for which a user has held ZKF tokens.
  • Volume-Weighted Holding (V): The average amount of ZKF tokens held over time, giving more weight to larger holdings.

Calculating the Fair Score

  • Time Score (TS): A score based on the time held.
  • Volume Score (VS): A score based on the average volume of tokens held. Calculated using a formula that weights the amount of tokens held over time.
  • Fair Score (FS): This score is a weighted sum of TS and VS. The weights can be adjusted based on what the platform wants to incentivize more (time held vs volume held).

Formula 1:
Fair Score = w1 * TS + w2 * VS
Where w1 and w2 are weights assigned to the Time Score and Volume Score, respectively.

Once there is a scoring system in place then it is only a matter of defining a reward pool

and distribution process in a given period (eg. monthly).

Formula 2:
User Reward = (User’s Fair Score / Total Fair Score of all users) * Total Reward Pool

It’s important to implement robust systems to accurately track holding durations and volumes. This should be transparent and resistant to gaming/farming or manipulation.

4. Enhancing $ZKF Utility

  • In addition to the governance utility attached to ZKF, the community can also choose to implement access to exclusive features, using the token as a gateway for advanced features on the network.
  • Implement a passive token burning mechanism to reduce the $10bn supply over time, potentially increasing the token’s value.

5. Community Engagement, Growth & Comms

  • Leverage the community for organic grassroots marketing through social media.
  • Create an ambassador program to incentivize community members to promote ZKFair.
  • Create educational content to attract new users and developers.
  • In addition to the aforementioned it is important to create regular community updates with regard to dev progress, financials and governance, maintaining transparency.
  • Regularly conduct comprehensive security audits.
44 个赞

This is excellent. I really like the attention to detail and the algorithm you used for time weighted scoring. Is that set in stone or is there flexibility?

14 个赞

Great detail. You have my vote!

11 个赞

Mine too. Hopium for CEO, lol :grinning:

8 个赞

Everyone HAS TO read section 3 here!! Wow

8 个赞

I like how you separate product focus into short and long term. Do you think there will be ample liquidity for other avenues too though? Such as NFT platforms, DeFi etc.

9 个赞

Can we implement an insurance fund to protect from smart contract loss? Do you feel that is a waste of funds?

7 个赞

same here. This is really good. Thanks @Hopium

8 个赞

I don’t see why that should be a priority. I mean dont get me wrong security is important but with limited liquidity .I am assuming you are worried about smart contract risk primarily. No other L2 has an insurance fund as far as I know

12 个赞

My favourite section too

13 个赞

The token scoring system was inspired by a mechanism Dragonchain implemented around 2017 called the Dragonscore.

11 个赞

Not a priority for me wither tbh. But not completely against it. Thanks for the feedback @Andrew

11 个赞

I appreciate all the votes of confidence. I would really love if you can vote for me in the Snapshot when it takes place. Thank you all!

11 个赞

I vaguely remember this actually. It was a good mechanism design. Everyone had FOMO for the score.

9 个赞

Can you find a link by any chance? I was trying to find it earlier but it seems like that period has been wiped from the web

10 个赞

This is by far the best proposal. I would have liked if you also mentioned interoperability and the seamless interconnectedness with other layers through bridges

10 个赞

You’re 100% right. And thank you for flagging this. I will edit my ideas in regarding bridging, which I think is very important

11 个赞

Btw @Bull feel free to mention anything in particular. This is a community effort after all. Also happy to take a look at your own ZIP, if you have one please share.

10 个赞

Thanks @Hopium, I don’t have my own ZIP, happy to stand behind yours.

9 个赞

great details will keeping an eye on this

10 个赞