Introduction
Whether you’re a new member just starting out, or an early adopter who’s helped us get to where we are today, this document will walk you through how our incentivization mechanisms are going to work. The document explains in more detail the proposed changes mentioned in [PROPOSAL-003] Guru Ecosystem Incentivization & Airdrop Mechanism.
As we continue to grow and develop, we’re planning to launch these mechanisms on the mainnet starting November 27, 2024. For more details, you can check out our announcement here: Guru Network Mainnet is Live.
Our incentivization model is designed to reward meaningful engagement. This means that users who actively participate—by completing quests, interacting with applications, and helping grow the community—will receive rewards from our Ecosystem Chest. Additionally, we have not forgotten our early adopters, who will also receive extra rewards for their initial support and contributions. Let’s take a closer look at how this works.
We want to ensure that every user understands how they can participate and benefit from our ecosystem, so we’ll be diving into the details with clear examples, flowcharts, and explanations.
Ecosystem Chest: The Core of Incentivization
The Ecosystem Chest is the on-chain treasury that serves as the source of rewards for Guru Network users on the mainnet. These rewards are distributed to users based on their contributions and activities within the ecosystem. The reward mechanism is structured around weekly reward cycles, known as “epochs,” which allow us to keep the incentives dynamic and aligned with the growth of the community.
To understand the reward flow, take a look at this diagram:
Reward Flow Breakdown
- Incentivization Token Pool (20% GURU Tokens): The Incentivization Token Pool allocates 20% of the total $GURU supply towards community rewards. Tokens are unlocked gradually over 1.5 years, ensuring stability and consistent incentives. These unlocked tokens are then transferred to the Ecosystem Chest.
- Ecosystem Chest: The Ecosystem Chest is the main treasury that distributes rewards based on user activities. This helps ensure that contributions are incentivized properly.
- Core Contributors & Apps Teams Launch Quests: Core Contributors and the teams running applications initiate quests to support ecosystem development and keep users engaged. Quests can be ecosystem-wide or app-specific. Ecosystem-wide quests are rewarded in GURU tokens, while individual applications may choose their own reward mechanisms, such as their own tokens.
- Weekly Allocations for Rewards: Each week, tokens are allocated from the Ecosystem Chest for rewards. The allocation is determined based on community needs and adjusted by Core Contributors.
- User Activities: Users earn rewards by participating in various activities, such as signing up on the mainnet, completing quests, using ecosystem apps, or participating in governance.
- Reward Distribution: Based on these activities, rewards are distributed from the Ecosystem Chest to users. All rewards, including weekly and initial rewards, are transferred to the operational wallet, which is shared across all applications within the ecosystem. Users can utilize GURU tokens throughout the ecosystem for various activities, such as locking into meme voting in Burning Meme.
Initial Mainnet Reward Distribution
To incentivize ecosystem adoption and recognize those who contributed during the testnet phase, we provide an initial mainnet reward when users first log in. While these measures are aimed at new users, early adopters are especially recognized and receive significantly higher reward multiplicators.
Sign-Up Reward Calculation
The formula for calculating the initial sign-up reward is as follows:
Sign Up Reward = Base Sign Up Reward * Pass Multiplicator + Governance Participation Reward + Accumulated Testnet Points * Conversion Rate + App Specific Rewards
Where,
- Base Sign Up Reward - fixed amount of 250 $GURU
- Pass Multiplicator - Each type of Guru NFT provides a multiplicator that increases the amount of the reward. Season Passes 1 and 2 have multiplicator 2, Themed collections and Guru DAO NFT have multiplicator 1. If users have more than one type of NFT in their wallet, multiplicators are combined. The number of each type of NFT does not increase the multiplicator. Example: user has 1 Season Pass #1, 2 Season Pass #2 and 1 Guru DAO NFT. Total multiplicator is: 2 for Season Pass #1 + 2 for Season Pass #2 and + 1 for Guru DAO NFT, total is 5.
- Governance Participation Reward - Users that are participated in Guru Network Snapshot voting, get additional reward 200 $GURU
- Accumulated Testnet points across apps * Conversion Rate - Points that were accumulated during testnet (tGURU, Burns, etc) are combined and converted into $GURU based on TVL ratio between mainnet and testnet conversion rate. We are still working on calculating the exact economics behind it.
- App Specific Rewards - applications within the ecosystem may provide additional rewards based on the app-specific criteria.
- Sign Up bonus calculation formula may be adjusted by Core Contributors.
- Sign Up Reward will be transferred to the user’s operational wallet. Tokens in this wallet will be available across all applications within the Guru Ecosystem.
- Users can redeem a Sign Up Reward by one wallet per Telegram account.
Weekly Reward Distribution
Each week (referred to as an epoch), the Core Contributors plan and allocate funds from the Ecosystem Chest, which are used for rewards. They also launch quests and activities that are valuable for the network’s growth at that specific time. These quests can be either ecosystem-wide, accessible across all applications, or specific to a particular application. The rewards are claimable through the ecosystem Telegram apps.
Rewards are provided to users based on the following activities:
- Signing up to the mainnet
- Completing Guru Network ecosystem-wide quests.
- Completing app-specific quests (e.g., in Burning Meme, Miles Deutscher, CrossFi, etc.).
- Interacting with Guru-powered applications (e.g., trading automations, AI processors, swaps matching, NFT minting, Memecoin launching, etc).
- Conducting marketing activities to promote ecosystem growth.
- Governance Participation.
- Other activities aligned with network sustainability and growth.
The exact number of rewards is determined by Core Contributors and the team that runs the apps and can be dynamically changed to prioritize the most relevant and effective ways to develop the ecosystem.
PointsNet
After the launch of the Guru Network mainnet, the testnet will transform into PointsNet. PointsNet will continue to operate on the testnet, providing a dedicated space for users to explore, experiment, and get familiar with Guru Network applications without the need to initially invest in the mainnet.
What is PointsNet?
PointsNet is a version of the Guru Network that operates on the testnet, allowing users to experiment with various applications, features, and activities. It’s designed to be a low-risk environment where new users can learn about the ecosystem and existing users can test new functionalities before they are deployed on the mainnet. Switch between mainnet and PointsNet will be available in the apps via the icon in the top-right corner.
PointsNet offers an opportunity to:
- Earn Points: Instead of earning GURU tokens, users on PointsNet earn points for their activities. These points are tracked and can be used for specific benefits within PointsNet, including gaining privileges and eventually transitioning to the mainnet passes.
- Experiment Freely: Users can explore Guru applications, such as AI chatbots, NFT minting, and other dApps, without the pressure of real token expenses or investments.
- Test Upcoming Features: New features are first introduced on PointsNet, allowing the community to provide feedback and help refine these functionalities before they go live on the mainnet.
PointsNet Access and Activities
- Open Access: PointsNet is open to everyone, and users can freely join and participate without the need for NFTs or other qualifications that are required for mainnet access.
- Earning Points: Activities in PointsNet are similar to those on the mainnet, including completing quests, using applications, and interacting with AI-powered features. However, users earn PointsNet points instead of GURU tokens.
- Transition to Mainnet: PointsNet points can be accumulated and, under specific conditions, converted into GURU tokens to help users transition to the mainnet. This mechanism provides a pathway for users to migrate from PointsNet to the full Guru Network experience.
Benefits of PointsNet
- Risk-Free Learning: Users new to the Guru ecosystem can experiment and learn how things work without needing to risk any real GURU tokens.
- Onboarding Pathway: PointsNet serves as a natural onboarding pathway for users who want to get familiar with the ecosystem before fully committing to the mainnet.
- Community Feedback: PointsNet allows the community to interact with new features and provide valuable feedback, which helps improve the final versions of applications and functionalities launched on the mainnet.
PointsNet will play a critical role in sustaining engagement while providing a welcoming environment for newcomers to the Guru Network. This dual-access model ensures that both novice and advanced users have opportunities to participate and benefit from the Guru ecosystem.