Hello alpacas! Now that our governance forum is up, I would like to bring up a discussion point that could potentially lead to a proposal that all the xALPACA holders can vote on.
Proposal: Reallocate ITAM rewards to Gov Vault stakers
Simple Summary:
As of 10th Feb 2022, there are approximately 917k unclaimed ITAM rewards (worth ~515k USD at current price) from the first Grazing Range pool that completed ~10 months ago.
We are proposing to re-allocate the entire unclaimed amount to reward the Governance Vault stakers.
Rationale:
Given the pool has been completed for 10 months, It’s likely that eligible wallets that have not claimed rewards are dormant and unlikely these rewards will ever be claimed.
By reallocating the rewards to Governance Vault stakers, we are serving the original purpose by distributing these tokens to the Alpaca community and getting exposure of our partners project to more users. We are also increasing the APR% for stakers.
Implementation:
If the proposal is passed by the community, the team will distribute ITAM rewards over 8 weeks to Governance Vault stakers - same as other Grazing Range pools.
We will make an announcement before executing the command to move the rewards, so original users who have earned ITAM will have time to claim their rewards if they wish to do so.
2.) These ITAM rewards were provided as extra rewards to ITAM-BNB farmers and BNB lenders. The distribution was completely different than our later Grazing Ranges. It’s not the case that users were staking explicitly to receive these rewards. Most of them were not even expecting these rewards since it was the first Grazing Range.
3.) ITAM is currently listed on PCS V2 and a minor exchange XT. The issue is ITAM was acquired by another company. That means there is a chance that ITAM token could be delisted at some point, and users will be unable to sell these rewards.
In my opinion we shouldn’t change the claim rules so hard.
This will affect the reputation of the platform and it will become more difficult to attract new users. It is better to return to this issue in 2-3 years, see how many of the sleeping users have started taking their tokens and decide what to do with the remaining rewards
I thought we could put out an announcement and give the sleepers time to pick up their rewards. If not collected by the due date, the reward is redistributed.
I don’t think it’s fair to reallocate those tokens just like this. Not everyone is checking regularly their investments. Many people have their tokens spread over different projects, different wallets and also over different blockchains. Even I sometimes cannot keep track of everything. Just because they haven’t claimed it after 10 months doesn’t mean they will never do. A better approach would be to announce on all available channels that after 24 months f.e. those tokens will be redistributed to the community if not claimed before. That would be fair. Just taking them could throw a bad light on Alpaca, and we all don’t want that to happen. Of course, we all like to have higher APYs, but we should be fair and not greedy.
Let me organize what I consider to be the benefits and drawbacks.
the point in the rationale is really just a one-time boost to staker’s earnings
then the corresponding bad might be the perception that the community, the product is too short-sighted to focus on the image of profit.
All things considered I don’t think it’s a good idea because we even have a lot of ALPACA lying dormant in the completed Graze Pool. Could we make the same decision for them?
My view is to respect the participants as they are, and it’s good that we can announce and remind them to be aware of the assets they still have unclaimed. But what to do with them remains up to them.
I basically agree with donalpaca’s opinion.
The amount of unclaimed money is large, and since we don’t know how many people will remember and claim later, we may receive bad publicity that our compensation was confiscated.
As Mr. Winance said, it is necessary to take at least enough time to make an announcement.
In addition to ITAM, there are probably a few other tokens distributed as rewards that have not been claimed yet.
If we are going to allocate tokens to the Governance Vault, I think it would be better to take this opportunity to formulate comprehensive rules that include other unclaimed tokens and tokens that will be newly distributed as rewards in the future.
Thanks for all the feedback so far, everyone! Summarizing what I have heard so far, it looks like you all want to see a more comprehensive plan on how to handle unclaimed rewards:
From what have been suggested so far:
option 1: Never touch the unclaimed rewards
option 2: Make it a policy that unclaimed rewards after a certain period of time will be re-allocated
For option 2, we have several parameters we can further discuss:
How long to wait before acting on the unclaimed rewards
What to do with the unclaimed rewards - For this, I want to point out that we actually have multiple options - e.g., distribute to gov vault stakers, use for buyback and burn of ALPACA, etc.
