Summary
The Mangrove Ecosystem Council proposes an allocation of 2.75% of the MGV token supply and 15,000 USDC to strategically fund the Mangrove DEX until September 2024 (given its already mid April). This funding is aimed at enhancing the DEX’s launch and operational success through a comprehensive incentive program, marketing efforts, and a grants scheme.
Rationale
In the face of a highly competitive decentralised exchange (DEX) landscape, it is imperative for Mangrove DEX to offer compelling incentives to attract and retain early adopters. This budget is designed to support our goals of fostering growth, driving innovation, and ensuring sustainability within the ecosystem. Please rest assured the only budget directly allocated to the council’s operations is the council compensation budget.
Specification
Post the Ecosystem Council Snapshot vote concluded on March 3, 2024, the council now includes the following members: Vd21, Guillaume Garchery, Pierre Laurent, PhilH, Gabi, bryce_gabari, VICTOR, Alex BertoG, and Disiaque (replacing Jamil).
From March/April 15 to September 15, 2024, our primary focus is to ensure the successful launch and expansion of Mangrove DEX, which went live on March 1st. The council aims to achieve this through strategic operations and outreach across the following domains, supported by the proposed budget:
| Key Area | Budget |
|---|---|
| Mangrove Season 1 Points Program | 10,000,000 MGV |
| - $100k/month of bootstrapping incentives for Blast (4 - 6 months) - less MGV incentives as there are already generous Blast rewards that push it to >$200k/month | |
| - $200k/month of bootstrapping incentives for a second deployment (Arbitrum or Base) (2 - 3 months) | |
| - Budget extensions may be requested for additional deployments | |
| BD & Partnerships Incentives | 10,000,000 MGV |
| - Encourages community growth and collaboration through token incentives to specific communities and new products | |
| Marketing, Communication, and Community Management | 2,500,000 MGV |
| - Quests & community games | |
| - Co marketing opportunities | |
| - KOLs | |
| Mangrove Builder Grants Program | 5,000,000 MGV + 15,000 USD |
| - Grants for those building on top of Mangrove whether analytics, tooling, or integrations such as active liquidity managers | |
| - Grants for Pods building products on top of Mangrove | |
| Council Compensation | 5,400 MGV |
| - 100MGV/month per member for active participation | |
| MGV token launchpad seed funding | |
| - A separate budget will be proposed for this initiative, with cost estimated up to 50,000,000 MGV | |
| TOTAL | 27,505,400 MGV + 15,000 USD |
Budget Alternative with respect to the Points Program
The scenario laid above offers a detailed breakdown that justifies allocating 10M MGVs to Mangrove Season 1. An alternative option has been also discussed by the Council, that would allocate 50M MGVs instead of 10, bringing the total budget to close to 7% of the MGV supply. The rationale was that this initial retroactive distribution (akin to an airdrop) might appear too small compared to similar operations by other protocols. Since the Council didn’t reach a clear consensus, this second option is also submitted on the forum for discussion.
Commitment and Transparency
The Ecosystem Council is dedicated to using this budget effectively to generate the most impact. Detailed spending reports will be shared monthly in the forum, promoting transparency and community engagement.
We may seek additional budget for new chain integrations or the MGV token launchpad. The launch of the token should ease spending as it will diversify the DAO’s treasury with stablecoins or ETH. The DAO’s trading fee revenue is anticipated to cover the costs associated with grantees audits and events. Currently the revenue is held in Mangrove core contract, standing around $33k in USDB and WETH.
Considerations regarding the actual availability of the MGV token
While this budget, once voted, sets a frame for allocating tokens to Mangrove’s users and contributors, it’s worth noting that the actual distribution might be delayed in order to be sync’d with the MGV launch event.
Feedback and Voting
We encourage the community to participate and share their feedback on this proposal. The Snapshot vote will open for five days, with the start date to be determined following forum discussions.