[MXC Layer3] [FINAL] [STIP - Round 2]

Archive Incentive Framework (Round 2)
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SECTION 1: APPLICANT INFORMATION

1.1 Personal/Organizational Details

  • Applicant Name: MXC DAO Limited
  • Position/Title: Core Developer
  • Associated Organization: MXC zkEVM Team

1.2 Project Information

  • Project Name: Promoting L3 Adoption through ARB Token Distribution to MXC zkEVM Users
  • Project Description: A strategic initiative to foster the expansion and user engagement on the L3 MXC zkEVM layer, by distributing ARB tokens to active participants, thereby bolstering growth on Arbitrum One.
  • Project Duration: 12 months

1.3 Team Details

  • Team Members and Qualifications:
    • Sheen Hu: Core Developer from Polkadot, specializing in L2 and L3 solutions.
    • [Additional Team Member Name]: Sheen, Core dev, previously worked with zkSync, bringing expertise in zero-knowledge proof systems.
    • (Include other team members with their qualifications and roles)

1.4 Relevant Links

1.5 Contact Information

1.6 Compliance Acknowledgement

  • Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?: Yes

SECTION 2: PROJECT DETAILS

2.1 Objective

  • Main Objective: Stimulate and incentivize L3 development and user interaction on Arbitrum One.
  • Target Audience: Developers, provers, and bridge users operating on Arbitrum One.

2.2 Implementation Plan

  • Methodology: Implement a systematic ARB token distribution to L3 participants, aiming to incentivize and enhance development and activity on the L3 MXC zkEVM layer.
  • Project Timeline:
    1. Secure ARB tokens through MXC DAO, subject to Grant approval.
    2. Initiate a consistent monthly distribution to Arbitrum One addresses, based on L2 gas usage, spanning over the next 12 months.

2.3 Expected Outcomes

  • Deliverables: Ensured monthly token distributions and a tangible uptick in L3 development and user interaction.
  • Impact: Amplification of Arbitrum One’s stature in the L2 arena, propelling L3 developmental and participatory growth.

SECTION 3: BUDGET INFORMATION

3.1 Budget Breakdown

  • Total Grant Amount Requested: 2 million ARB tokens.
  • Purpose: The grant is strictly meant for rewarding L2 addresses that engage in L3 activities. It’s an initiative to incentivize the adoption and use of L3 functionalities. These funds are not allocated for development or marketing purposes but are solely dedicated to covering roll-up gas fees.

Allocation Strategy:

  1. Determine the Gas-to-ARB Conversion Rate:
    First, establish a conversion rate. This rate, referred to as R, will define how many ARB tokens a user will get for 1 ETH worth of gas spent.

    R = Total ARB tokens available for grant / Total ETH expected to be spent on gas by users during the grant period

    Where:

    • Total ARB tokens available for grant = 2 million ARB
    • Total ETH expected to be spent on gas by users during grant period (for this example) = 5000 ETH.

    Using the formula:
    R = 2,000,000 ARB / 5000 ETH = 400 ARB/ETH

    Thus, for every ETH spent on gas, a user will be rewarded with 400 ARB tokens.

  2. Reward Distribution:
    For a user spending 1 ETH on gas, the reward in ARB would be:
    Reward in ARB = R * ETH spent on gas
    Given R = 400 ARB/ETH,
    Reward in ARB = 400 * 1 = 400 ARB

  3. Monitoring and Distribution: Regularly monitor L2 addresses engaging in L3 activities. Once a user surpasses a certain threshold of gas spending, e.g., 0.1 ETH, they become eligible for a reward. This process can be automated or handled in batches to minimize operational overhead.

Budget Utilization:

  • ARB Tokens for L2 users: 1.8 million ARB (90% of total grant)

    • This major portion will reward users based on their gas usage.

  • Operational Costs: 200,000 ARB (10% of total grant)

    • This allocation covers costs associated with monitoring, verification, and reward distribution. It also accommodates any unforeseen expenses that may arise during the operation.

3.2 Funding History

  • Previous Funding: N/A
  • Current Funding: N/A
    Sure, let’s improve the sections based on the information you provided:

SECTION 4: PROTOCOL DETAILS

Is the Protocol Native to Arbitrum?:
Yes. The protocol has been specifically developed to operate within the Arbitrum environment to facilitate greater scalability in application-specific chains, with a special focus on IoT applications in the L3 space.

On what other networks is the protocol deployed?:
While the primary deployment is on Arbitrum One, potential expansion to other networks might be considered in the future based on the protocol’s growth and community requirements.

What date did you deploy on Arbitrum?:
14th July 2023

Protocol Performance:
The protocol’s performance metrics can be reviewed at explorer.mxc.com. As of now, there are around 30,000 active wallets with a daily transaction count averaging 100,000.

Protocol Roadmap:
Our roadmap focuses on enhancing real-world applications through blockchain technology. Key upcoming milestones include:

  • Launching RWA NFT (Real World Asset Non-Fungible Tokens)
  • Initiating more ISO sensor projects that impact real-world activities directly, improving efficiency and transparency.

Audit History:
The protocol has undergone rigorous security checks to ensure its robustness. The audit report by QuillAudits can be accessed here.

SECTION 5: Data and Reporting

Is your team prepared to create Dune Dashboards for your incentive program?:
Yes, our team is committed to ensuring transparency and will set up Dune Dashboards to provide stakeholders with real-time insights into the incentive program.

Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?:
Absolutely, we believe in maintaining consistent communication with our community. Bi-weekly updates will be provided on the Arbitrum Forum to keep all stakeholders informed about our progress and developments.

Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?:
Yes, we understand the importance of compliance with the stipulated requirements and are committed to fulfilling them. We acknowledge the consequences of non-compliance.

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Will keep this unlisted (like other round 2 proposals) until Stable Labs directs us to make it public.

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Thanks for everyone’s support! Our zkEVM chain is quite active now!