This consultation aims to secure a GYFI budget to incentivize Gyroscope adoption.
This will enable the Gyroscope DAO to build on the momentum from the imminent public Token Generation Event, focus attention on Gyroscope’s new strategic focus on Volatile Pair pools, and provide an alternative incentive scheme to SPIN.
This proposal also seeks an additional GYFI budget for marketing.
Summary of proposal
It is proposed that an initial GYFI budget of 275,000 GYFI (2.01% of GYFI supply) be allocated to be used to incentivize liquidity.
It is proposed that a GYFI budget of 25,000 GYFI (0.18% of GYFI supply) be allocated to fund marketing campaigns.
Post-public-TGE Incentive Strategy: Following Gyroscope’s Token Generation Event (TGE) the GYFI token will have a market price, reducing uncertainty and enhancing the ability to attract new users. Given the high-profile nature of the TGE, it is crucial to build on its momentum by launching an incentives campaign that extends the benefits of the SPIN scheme to both existing and new users. Note, this may take the form of direct incentives, aka liquidity mining, or a second SPIN phase.
New Focus on Volatile Pair Pools: Gyroscope will also increasingly focus on Volatile Pair pools. These pools have the potential to generate substantial protocol revenue. The stablecoin GYD will play a complementary role as a hub-and-spoke asset for stablecoin; increasing capital efficiency, internalizing stablecoin yield, and growing alongside the pools.
Integrated Growth and Marketing Approach: Growth campaigns yield the best results when supported by marketing. As such, any growth initiatives should be accompanied by additional marketing efforts to clearly communicate Gyroscope’s product offering. This would expand a previously approved marketing budget as per [GIP-3].
The allocated budget sets the upper bound on what can be spent on the previously described purposes. If the budget is not fully allocated by the end of Q2 2025 (30.06.2025) any remaining funds are to be returned to the Gyroscope DAO.
Hi
It’s really great that we already have a marketing proposal! I agree, but it’s better not to forget about the community, reporting to the DAO after marketing actions and results is important. I agree with marketing campaigns!
There will definitely be an update on how [GIP-3] was allocated. A new category has just been created for DAO reporting where follow-up will be posted.
Regarding your table, yes, these are allocations on top of the previous ones. However, the allocation to Trading firms is not changed, that’s still 1.5%. The 2% allocation here is for liquid GYFI incentives in the form of liquidity mining.
This is absolutely necessary to keep the community engaged and attract new users. I’m hopeful that the marketing investment will deliver the best possible ROI, amplifying Gyroscope’s visibility and growth.
I believe this is one of those proposals that will quickly pay for itself. I’ve always been a proponent of increasing liquidity in the protocol, it’s a win-win for both users and the DAO. It strengthens the coin’s stability through diversification while providing users with a healthy yield. Marketing is just the cherry on top. Hard yes.
Yes 2% seems good for post TGE. I would say something like the current system will be better instead a absolute APY. The trading price determines the APY, the incentives should be similar to SPIN, should not depend on the trading price of the token or else you will need a larger budget that is >2% for the period.
Isnt 2% for 3 month period high? If this is the standard practice, looks good. Absolutely welcome the decission on spending for marketing.
It’s pretty clear that community engagement and attracting new users are essential. To ensure the marketing budget delivers a strong return on investment, ongoing, transparent reporting to the DAO on marketing activities and outcomes is necessary.
I look forward to seeing the detailed marketing strategy and the key performance indicators that will be used to measure its effectiveness."
I would like to quote my previous comment on the marketing proposal, as no further information has been provided on how the budget has been spent and the KPIs achieved.
After the TGE, most of the unanswered questions and speculations I mentioned here will be addressed. Speculation will become much easier, and @ftl-labs’ strategy will be revealed to the market and SPIN Program participants. Therefore, ensuring a successful first round of the program is crucial.
Early users will decide whether to continue farming SPINs or deploy their capital elsewhere. I understand that the purpose of the program is to leverage the attention gained at the TGE to attract new participants. However, professional farmers will analyze past seasons before making decisions.
For this reason, I strongly suggest focusing on making the first program a success, as it will signal to the market that another successful Season 2 is expected. If I were to name a successful points program, it would be Ethena, while the most recent failed points program, after 1.5 years of farming, is Elixir.
Absolutely support this guys! The allocation of 275,000 GYFI (2.01% of total supply) to boost liquidity post-TGE makes perfect sense. About the form that this incentives take: liquidity mining or a follow-up to the SPIN initiative—both I’m happy with.
A specific aspect that excites me is the renewed focus on Volatile Pair pools—these have enormous potential I agree, and having GYD in the mix so it can grow alongside is great!
Lastly, on the discussion around the 2% liquidity incentive allocation—cain605’s mentioned about 2% possibly being high over a 3-month period: I feel it’s justified given the critical post-TGE phase. Ensuring initial liquidity depth will set a strong foundation and pay off many times over, especially if we aim for a successful Season 2 similar to the approach Mehdi mentioned regarding Ethena.