Rewarding governance activity helps motivate a greater number of DAO members to take a more active role in governance. To this end, the DeXe Protocol DAO has developed the following rewards system.
Rewards Program background
This updated rewards program will have members of the DeXe Protocol DAO receiving NFTs that increase the reward amount they can claim for voting in the DAO.
Everyone is welcome to join. To be eligible for the Rewards Program and claim the NFT, you must register for the program within 10 days after the release of the DeXe Protocol. This applies even if you purchased tokens during the initial $DEXE token generation event. During one of those 10 days, a snapshot will be taken to determine the reward program’s exact parameters.
The NFT will have a reward multiplier of up to x13. To qualify for it, the person must:
- Hold the ERC-20 $DEXE on the Ethereum network in their wallet until the completion of the 10-day registration period.
- Complete the following registration form during those 10 days (till the 23rd of November).
NOTE: Only those wallet addresses that participated in the $DEXE public sale can receive the highest multiplier of x13. Everyone else can receive a multiplier in the range of x3 to x9.
NFT Multiplier Calculation
There are 5 multiplier tiers: x3, x4, x6, x9, x13.
The NFT multiplier will be determined based on how much higher — in percentages — the member’s $DEXE balance is during the snapshot vis-a-vis its weighted average balance of $DEXE since the first moment the user held $DEXE in their wallet. The following formula will be used for the calculations:
Which assumes the following definitions:
Weighted Average Balance
The average balance of $DEXE in the wallet for the entire period from the moment they appeared in the wallet until the snapshot. The weighted average balance is calculated by averaging the number of $DEXE held each second from the first moment they held $DEXE until the snapshot.
Specifically, for any specific amount of $DEXE held in the wallet, the formula calculates:
The formula then adds up all such results and divides them by the total number of seconds $DEXE was held in the wallet:
The logic of Weighted Average Balance has been built into the $DEXE token’s smart contract since its deployment, which means that it automatically calculates for each wallet from the beginning.
Here are the detailed instructions on how to see Weighted Average Balance, with step-by-step screenshots:
Step 1: Go to the $DEXE token contract page on Etherscan through this link.
Step 2: Locate and open the 16th tab “getAverageBalance”, enter your wallet address, and click the “Query” button. Then click on the number in the “uint256” field.
Step 3: The number in the Ether (1) field on the opened page represents your Weighted Average Balance.
Balance at the time of the snapshot that will be taken sometime during the 10 days after the Protocol’s public release.
The Increase Percentage will determine the NFT multiplier as follows:
If the Weighted Average Balance displayed on Etherscan is 1000 $DEXE аnd the Final balance is 2000 $DEXE during the snapshot, this wallet address will receive the x3 multiplier NFT:
If the final balance was 2500 $DEXE, the formula would look like this:
In this case the wallet would receive the x9 multiplier NFT.
Let's consider the case when your Weighted Average Balance displayed on Etherscan is 500 $DEXE and you aim for the NFT with the x6 multiplier.
Considering the multiplier table above, you need to have 125%-149.99% more tokens than your Weighted Average Balance at the time of the snapshot. Therefore, the calculation would look like this:
In other words, to receive the x6 multiplier NFT, you need to have 1125 $DEXE more than your Weighted Average Balance at the snapshot moment. So total you need to have 1625 $DEXE (1125+500) on the wallet during the snapshot.
How the NFT Increases Rewards
While all DeXe Protocol DAO members receive rewards for voting, users who stake the NFT in their wallet will have increased rewards.
As an example, let’s take a DAO member whose 5000 $DEXE snapshot balance equals his weighted average. Let’s assume that he voted in 10 approved proposals with all of those 5000 $DEXE tokens at the reward rate set by the DAO at 0.2%.
Without any multipliers, his reward will be 100 $DEXE. If he had the maximum x13 multiplier, that reward would be 1300 $DEXE.
Yet a wallet’s balance of $DEXE may change over time. That is why an Actual Multiplier needs to be calculated in such cases.
In those cases when the current vote balance is greater than (Weighted average balance * Multiplier), the formula for the Actual Multiplier looks like this:
The weighted average balance measured for the purposes of the NFT was 1000 $DEXE with the NFT Multiplier of x13. For the specific vote of this example, the user voted with 20,000 $DEXE.
Using the above formula, we get:
This is the multiplier that will be applied to the rewards for this particular approved proposal at the time of claiming them.
NOTE: The Actual Multiplier is only relevant if the person voted with more tokens than the weighted average that was calculated when the NFT was issued — multiplied by the NFT multiplier, i.e (Weighted average balance * Multiplier). Otherwise, the NFT Multiplier is the only one that needs to be used.
NFT Mint and Staking
The NFTs with multipliers will be minted on the BNB Chain and will be used in the DeXe Protocol DAO voting.
For the NFT multiplier to apply, the user needs to stake his NFT by locking it in a smart contract.
The staked NFT can be withdrawn and transferred to another wallet at any time — but each unlock results in the NFT permanently losing 10% of its multiplier power.
The details about the NFT mint and on how to lock it will be published after the 10-day signup form is closed and the data from it is reviewed.
The NFT reward multiplier’s validity is calculated by the following formula:
Thus, if you held $DEXE for 100 days prior to the snapshot and your multiplier is x9, your NFT will have the x9 multiplier for 900 days, after which point it just becomes a regular NFT without any multiplier power.
DeXe Protocol DAO
Since the DeXe Protocol contracts were deployed on the mainnet, the DeXe Protocol DAO automatically began operating within the Protocol on the BNB Chain. As soon as the DeXe DAO Studio is released all the DAO members will have the opportunity to conveniently manage, propose, vote, and receive rewards for their contribution.
This rewards program is first and foremost to members and contributors who will continue actively contributing to the growth of the DeXe Protocol DAO. It is part of our bigger mission to show that active governance can and should be rewarded.