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0086-ASPR-activity_streak_program.md

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Activity Streak Program

The purpose of the activity streak program is to reward loyal, active traders with the following tiered benefits:

  • a greater share of rewards schemes
  • an accelerated vesting rate on locked rewards

Parties access higher tiers and greater benefits by maintaining an activity streak. The length of a streak is measured in epochs and a party is considered active if they made a trade or held an open position during the epoch. If a party is inactive for more than a specified number of epochs they lose their streak.

Network parameters

  • rewards.activityStreak.benefitTiers: is an ordered list of dictionaries defining the requirements and benefits for each tier.
  • rewards.activityStreak.inactivityLimit: the maximum number of epochs a trader can be inactive before loosing their streak.
  • rewards.activityStreak.minQuantumOpenNotionalVolume: the minimum open notional volume (expressed in quantum) for a trader to be considered active in an epoch
  • rewards.activityStreak.minQuantumTradeVolume: the minimum trade volume (expressed in quantum) for a trader to be considered active in an epoch

Governance proposals

The network parameter rewards.activityStreak.benefitTiers can be updated via a UpdateNetworkParameter governance proposal. Each tier in the ordered list must have the following fields:

  • minimum_activity_streak: int greater or equal to 0 defining the minimum activity streak a party must have to access this tier
  • reward_multiplier: float greater or equal to 1 defining the factor to scale a parties reward shares by
  • vesting_multiplier: float greater or equal to 1 defining the factor to scale a parties base vesting rate by

Example:

message UpdateNetworkParameter{
    changes: NetworkParameter{
        key: "rewards.activityStreak.benefitTiers",
        value: [
            {"minimum_activity_streak": 1, "reward_multiplier": 1.0, "vesting_multiplier": 1.05},
            {"minimum_activity_streak": 7, "reward_multiplier": 5.0, "vesting_multiplier": 1.25},
            {"minimum_activity_streak": 31, "reward_multiplier": 10.0, "vesting_multiplier": 1.50},
            {"minimum_activity_streak": 365, "reward_multiplier": 20.0, "vesting_multiplier": 2.00},

        ],
    }
}

Activity streak mechanics

The following steps should occur before rewards are [distributed] and [vested].

Setting activity / inactivity streak

For the feature, the network must track each parties "activity streak". At the end of an epoch:

  • if a party was "active" in the epoch

    • increment their activity_streak by 1
    • reset their inactivity_streak to 0.

  • if a party was "inactive" in the epoch

    • increment their inactivity_streak streak by 1
    • if their inactivity_streak is greater than or equal to the rewards.activityStreak.inactivityLimit, reset their activity_streak to 0.

A party is defined as active if they fulfil either of the following criteria:

  • their open interest was strictly greater than rewards.activityStreak.minQuantumOpenNotionalVolume at any point in the epoch
  • their total trade volume was strictly greater than rewards.activityStreak.minQuantumTradeVolume at the end of the epoch

Setting activity benefits

After determining a parties "activity streak" there reward_distribution_activity_multiplier and reward_vesting_activity_multiplier should be set according to the highest tier they qualify for.

Given:
    rewards.activityStreak.benefitTiers: [
        [
            {"minimum_activity_streak": 1, "reward_multiplier": 1.0, "vesting_multiplier": 1.05},
            {"minimum_activity_streak": 7, "reward_multiplier": 5.0, "vesting_multiplier": 1.25},
            {"minimum_activity_streak": 31, "reward_multiplier": 10.0, "vesting_multiplier": 1.50},
            {"minimum_activity_streak": 365, "reward_multiplier": 20.0, "vesting_multiplier": 2.00},

        ],
    ]

And:
    activity_streak=48
    inactivity_streak=3

Then:
    reward_distribution_activity_multiplier=10.0
    reward_vesting_activity_multiplier=1.50

Applying activity benefits

Applying the activity reward multiplier

The activity_streak_reward_multiplier scales the parties reward share for all rewards they are eligible for.

Applying the activity vesting multiplier

The activity_streak_vesting_multiplier scales the parties vesting rate of all funds locked in the parties vesting accounts.

APIs

Parties API

Must expose the following:

  • a parties activity_streak
  • a parties inactivity_streak
  • whether a party has been considered "active" in the current epoch
  • a parties current reward_distribution_activity_multiplier
  • a parties current reward_vesting_activity_multiplier

Acceptance Criteria

Network parameters

  1. If any of the following network parameters are updated, the new values will be used when distributing or vesting rewards at the end of the current epoch:

Setting activity / inactivity streak

  1. At the end of an epoch, before rewards are distributed, a parties activity steak is incremented if they fulfil either of the following conditions:

    • their notional open volume summed across all markets (in quantum) was strictly greater than rewards.activityStreak.minQuantumOpenNotionalVolume at any point in the epoch. (0086-ASPR-004)
    • their notional trade volume summed across all markets (in quantum) was strictly greater than rewards.activityStreak.minQuantumTradeVolume at the end of the epoch. (0086-ASPR-005)

  2. At the end of an epoch, before rewards are distributed, if a party was deemed active then their inactivity_streak should be reset to 0.

  3. At the end of an epoch, before rewards are distributed, a parties inactivity streak is incremented if they fulfil both of the following conditions: (0086-ASPR-006)

    • their notional open volume summed across all markets (in quantum) was less than rewards.activityStreak.minQuantumOpenNotionalVolume at any point in the epoch.
    • their notional trade volume summed across all markets (in quantum) was less than rewards.activityStreak.minQuantumTradeVolume at the end of the epoch.

  4. At the end of an epoch if a party was deemed inactive and after incrementing their inactivity_streak it is greater than rewards.activityStreak.inactivityLimit then their activity_streak should be reset to 0. (0086-ASPR-007)

Setting activity benefits

  1. At the end of the epoch, before rewards are distributed, the parties reward_distribution_activity_multiplier should be set equal to the value in the highest tier where their activity streak is greater or equal than the minimum_activity_streak. (0086-ASPR-008)
  2. At the end of the epoch, before rewards are distributed, the parties reward_vesting_activity_multiplier should be set equal to the value in the highest tier where their activity_streak is greater or equal than the minimum_activity_streak. (0086-ASPR-009)
  3. Assuming all parties perform equally, a party with a greater reward_distribution_activity_multiplier should receive a larger share of a reward pool. (0086-ASPR-010)