[Notice] Liquidity Council actions to incentivize validators to join BLOCK network

Notice
1

Summary

The Liquidity Council intents to perform the following actions to incentivize validators to join the BLOCK network (which will generate much needed BSN liquidity via a 50% commission on MEV revenue):

  • Swap a small amount of BSN for ETH (possibly on CoWswap or OTC via AirSwap, the details are to be determined).
  • Use the ETH to deploy 2 contracts:
    • Fixed version of Validator bribe market (a bug prevents validators from withdrawing remaining tokens from expired bribes)
    • LSD Network bribe market
  • The Liquidity Council multisig wallet will become the new Fee Recipient for bribes @ https://etherstake.house/ and a 20% fee on all claims will be paid to the Liquidity Council.
  • Deposit a bribe of 5m BSN to incentivize validators to join the BLOCK network. The first 5 staked validators may initiate a claim and collect their rewards (1m BSN - 20% = 800k BSN) anytime along a linear, per-second, year-long vesting schedule.

The maximum BSN expense of these actions will be equal to:

BSN_Sold + 4,000,000 BSN (5m BSN bribe deposit - 1m BSN returned in claim fees)

If any validators claim before their year-long vesting schedule ends, then the Liquidity Council could recover more than 1m BSN of the 5m BSN bribe deposit.

Bribe market

The bribe market contracts were developed for a project funded by the Grants Council and have not been audited. The UI at https://etherstake.house/ is not managed by or associated with Blockswap Labs, the Grant Council, or the Liquidity Council.

To deter validators from joining a network to claim bribe rewards and then immediately unstake and switch networks, LSD Network bribes are linearly vested on a per-second basis over 365 days. Please note that validators may only claim LSD Network bribes once. This means a validator who joins an incentivized network to claim rewards and immediately switch networks will receive a very small percentage of their total allotted rewards.

Validators who wait to claim a full year from their claim initiation will receive 100% of their allotted rewards.

6 Likes
2

Update

Bribe Deposited

The Liquidity Council has deposited a 5m BSN Bribe to the LSD Network bribe marketplace at https://etherstake.house/

The first 5 validators to join and become fully staked (32 ETH) in BLOCK network will be able to claim 800k BSN each (1M-20% fee).

Terms

The bribe rewards are vested linearly, per-second, over 365 days. After joining the BLOCK network and becoming fully staked, a validator must “Register” or initiate their claim. This on-chain registration can be done with the Bribe Market UI @ etherstake.house and will begin the 365 day vesting schedule for the validator. Validators may only claim once per bribe. Any tokens left unvested after a validator claims will be returned to the Liquidity Council (for example, if a validator claims bribe rewards 182.5 days after Registering, they will claim 400k BSN and forfeit 400k unvested BSN)

Please read these warnings carefully before staking/claiming

  • Validators may only claim once per bribe. Unvested tokens are forfeited upon claim. This means a validator who stakes in BLOCK network to immediately claim rewards (and then un-stake and re-stake elsewhere) will receive a very small portion of their allotted rewards. Only validators who wait at least 365 days between Registering and Claiming will receive the entire 800k BSN. Validators must be staked in the BLOCK network during Registration and Claiming.

  • The bribe contracts have not been audited.

  • The Bribe Market dApp at https://etherstake.house/ is independently owned and operated by a member of the Liquidity Council. Always double check that you’re interacting with the correct contract (deployment addresses can be found on GitHub link below).

  • Source code for the contracts and dApp, contract addresses, and ABIs are hosted on GitHub: GitHub - vdallco/Liquid-Staking-Bribes: ERC-20 token bribes for LSD Network Owners and Node Runners of Blockswap's Stakehouse liquid-staking derivatives platform.

3 Likes