Increment strives to become a fundamental piece of DeFi infrastructure on zkSync 2.0 and beyond, empowering on-chain perpetual swaps and other innovative products for the crypto universe. During the first 15 days of its beta launch a few months ago, the Increment protocol reached a total volume of $24.7 million, 6806 unique users, and 67,807 transactions on zkSync 2.0 testnet.
In order to enshrine Increment as a public good that is built and maintained by the community, the core contributors and core community members have reached consensus on launching the INCR governance token in order to establish an ecosystem around the Increment protocol and further its path to decentralization. If the broader community votes in favour of this proposal, the INCR token will be created and a portion will be distributed retroactively to various community members of the Increment ecosystem.
Token Utility and Mechanisms
The INCR token will be used by the community to vote, govern, and curate essential infrastructure components of the Increment ecosystem, including:
- Market deployments
- Technical parameters
- Economic risk parameters
- Curation of supported collateral assets
- Outstanding INCR token supply
- Other Increment community treasury assets (NFTs, ENS names, etc.)
- Protocol emissions
- Future token utility
By giving INCR token holders control over the core components of the Increment ecosystem, the community is empowered to play an active role in building, maintaining, and contributing to the ecosystem.
At genesis, 20 million INCR tokens will be minted on Ethereum mainnet. The INCR token has a fixed token supply.
The total supply of INCR tokens will be distributed and vested as follows:
A detailed breakdown of the token supply can be found in this spreadsheet here.
9,200,000 INCR is allocated for future token emissions for protocol users. Note that the exact emissions schedule has not been set. This amount should only be used with a mandate from the Increment community, where the mandate is granted by completing the appropriate governance proposal and voting processes.
There will be three community distributions in total. 400,000 INCR is distributed in the first phase and will be available immediately to the community. The second phase will distribute 1,000,000 tokens to the community within the first year of launch. And the third phase will distribute another 1,000,000 tokens to the community within the second year of launch.
800,000 INCR is allocated for ecosystem grants, partnerships, etc to further grow the Increment ecosystem. This allocation is vested linearly for 2 years.
3,000,000 INCR is allocated to current and future core contributor teams of the protocol. This allocation is locked for the first year, then begins a 4 year linear vesting schedule.
3,120,000 INCR is allocated to seed investors who supported the beginnings of the protocol as well as its growth process. This allocation is locked for the first 9 months, then begins a 18 month linear vesting schedule.
1,480,000 INCR is allocated to the Development Fund to support future development costs or fundraises of the protocol. This allocation is vested linearly for 4 years.
The graph below can be found in the detailed breakdown of token supply spreadsheet linked above - it is an approximation of the initial 8 year token release schedule. *Note that the exact “Community Emissions” has not been set, and will be determined at a later time with the community.
Relative shares of the circulating token supply for the first 8 years.
Distribution Phase I
Back in October 2021, the Discovery Phase was proposed and implemented, where the main objective was to identify those who have been actively contributing in the Increment community. Since then, we’ve completed a series of stress testing events where numerous community members have joined in and used the protocol.
After the genesis of the INCR token, a total of 400,000 INCR will be distributed retroactively to the community and will be available immediately. Note that the ERC-20 token contract will be paused to begin with, which means that the token will be non transferable.
Goal of Distribution
- Decentralization: INCR governance would benefit most if the token is widely distributed. Token holders’ can participate in building and contributing to the protocol.
- Utilization: More active users should receive more tokens than less active ones. Recipients should get a “meaningful” amount, i.e. users should care about it and tx fees for claiming shouldn’t make it economically unwise to claim INCR tokens allocated to them.
- Increment Trivia POAP #11905 Minter
- Community Writer POAP #32134 Minter
- Meme Competition POAP #38023 Minter
- Beta v1Tester POAP #39455 Minter
- Beta v2 Tester Guild Allowlist
- Battle Royale Trading Tournament POAP #88961 Minter
- Community Role: Elite Profitmaxi
- Community Role: Max Bidding
- Community Role: Cred Stars
- Community Role: Global Angels
Snapshot was taken on January 15th 2023 at 4pm UTC.
A detailed distribution method and criteria can be found in this spreadsheet here.
A sorted list of eligible addresses can be found here.
It is no secret that there are bots and illegitimate users that try to sybil attack a protocol’s governance system in this space. If they succeed, Increment’s protocol governance and community will be at risk of centralization and potential bad actors.
In order to distribute INCR to as many legitimate users as possible within the Increment community and mitigate this kind of attack towards our protocol governance, it will be necessary to call on the community for help in finding and reporting any potential cases of sybil attacks in the current list of eligible addresses.
Once this token creation and distribution phase I is confirmed by the community poll below, more details will be shared regarding sybil hunting in a link to a Github repo as the next steps.
The plans outlined in this proposal are subject to discussion and change. They may also need to be (re)structured to take account of legal, regulatory, or technical developments as well as governance considerations. This document should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in any transactions. You are solely responsible for your own investment decisions and transactions.
Poll Vote: Closes on Feb 15
- Let’s do this!
- Make no changes