ZenIP: EON User Incentives Program for Ecosystem Growth

Following up on the idea in Discourse posted here, posting the full ZenIP below.

ZenIP: EON User Incentives Program for Ecosystem Growth

Owner: Ross Elkin, relkin@horizenlabs.io

Status: Draft

Type: Standard

Created: 03-14-2024

Abstract:

This ZenIP proposes the implementation of an EON User Incentives Program aimed at fostering ecosystem growth and increasing user engagement on the EON chain. The program intends to leverage treasury funds to provide short-term incentives for users of protocols on the EON chain, thereby enhancing transaction volume and boosting the total value locked (TVL).

Motivation:

The introduction of decentralized finance to the Horizen ecosystem necessitates strategic measures to ensure sustained growth and vibrancy. By initiating a user incentives program, we aim to stimulate immediate user engagement, thereby strengthening the current protocol and ecosystem. Additionally, this program lays the groundwork for future initiatives, providing valuable insights and learnings for subsequent proposals.

Specification:

  • Treasury Funds Allocation:
    • A portion of treasury funds, totaling $20,000 USD, will be allocated for the user incentives program.
  • Protocol Participation:
    • To ensure that funding is directed towards creative incentives for end users, Horizen Labs would allocate the funds on behalf of the DAO to selected protocols that engage community members and stimulate DeFi growth within the ecosystem.
  • Reporting & Tracking:
    • The foundation will establish mechanisms for transparent reporting on the success of the campaigns, providing the community with insights into chain progress.

Rationale:

  • Immediate user incentives are crucial for attracting new users to the EON chain, thereby bolstering the success of existing protocols and attracting further attention to the ecosystem.
  • This short-term initiative aligns with Horizen’s growth goals and sets a precedent for future proposals seeking regular funding for similar ecosystem-enhancing initiatives.

Challenges and Considerations:

  • Ensuring effective utilization of treasury funds and alignment of incentives with protocol objectives. To address this, robust reporting mechanisms to track the success of the program and ensure transparency must be established.

Conclusion:

The proposed EON User Incentives Program represents a strategic opportunity to drive ecosystem growth and enhance user engagement on the EON chain. By leveraging treasury funds and fostering collaboration with protocols, we aim to lay the foundation for a vibrant and sustainable ecosystem. Community feedback and input are crucial for the success of this initiative, and we encourage active participation and discussion.

8 Likes

I imagine that this is the kind of program we can start small with a trial run now and then scale into as we learn what’s working.

2 Likes

I think this is a great idea for accelerating DeFi in the Horizen Ecosystem by having EON Zen or even ZUSD allocated to be distrubuted as additional rewards to users participating in important liquidity pools, lending pools, other dapps etc.

1 Like

I think this program is long overdue. I support it 100%

1 Like

I support the EON User Incentive Program, despite starting with a modest budget, it’s something that we’re in dire need of.

1 Like

It an interesting initiative, the fact that it be enhancing transaction volume and boosting the total value locked (TVL) on EON is a good one!

1 Like

This is still important! I want to see the foundations funds being put to good use. This is as good as it gets and is right in front of our eye’s. Lets some how make this happen. What’s the next step?