[READY] [GF: Phase 1 Proposal] Raptor

Project Name: Raptor

Author Name:

@netrunner on behalf of Raptor
Twitter

Number of OP tokens requested:

800,000

L2 Recipient Address:

0xB1e36fA14cEBC9754A581f92c59675F842513D88

Relevant Usage Metrics: (TVL, transactions, volume, unique addresses, etc.)

Trading Volume on Uniswap (30d): <$1M. MCap: ~35M. We just launched on Uniswap! (fair launch).

Optimism alignment (up to 200 word explanation):

This proposal seeks to realize Optimism’s Vision in supporting public goods such as Validators Nodes which benefits Optimism, Ethereum, and the Collective as a whole. This is why Optimism is Granting 100% of centralized sequencer profits to Ethereum protocol development, because it is a core part of Optimism’s ethos.

Raptor is an Ethereum infrastructure DAO focused on maintaining ETH2 Validator Nodes, an essential public good, by supporting the infrastructure to onboard the next wave of users into Web3. We believe the open source roots of Ethereum encourage communities to support each other and support the network.

Optimism is a layer 2 chain, meaning it functions on top of the Ethereum mainnet (layer 1), and as such will rely upon this infrastructure once Ethereum 2.0 rolls out. As a Validator we are responsible for storing data, processing transactions, and adding new blocks to the blockchain. This keeps Ethereum secure for everyone and in return earns ETH.

ETH will be used to buy back Optimism Tokens from the open market on an quarterly basis, using 50% of the Ethereum Validator rewards.

We believe our project aligns itself with the Optimism ethos that healthy public goods create a thriving and valuable ecosystem.

How will the OP tokens be distributed?

We will use the allocation to help fund 10 Ethereum 2.0 Validator Nodes. We are seeking support from other communities to help us grow a network of Validator Nodes funded by the wider Web3 community. We believe this is an important step in ensuring Ethereum stays a truly decentralized network.

How will this distribution incentivize usage and liquidity on Optimism?

We will buy back Optimism Tokens from the open market on an quarterly basis, using 50% of the Ethereum validator rewards, and use the other 50% to fund more validators. We will verifiably burn the OP tokens and report these activities on a quarterly basis which will be available in our Gitbook.

Over time, the process of burning OP Tokens will reduce circulating supply, impacting its value. As the token value increases it will drive more usage and liquidity on Optimism.

Why will the incentivized users and liquidity remain after incentives dry up?

As long as the Ethereum network is active, ETH Validator rewards will be ongoing, and used to buyback and burn Optimism tokens.

Last year, Ethereum implemented a transaction fee-burning mechanism which removed 1.3 million ETH from the network making ETH a deflationary currency, which will increase in value over time. As ETH appreciates, we will be able to acquire more OP tokens to burn, courtesy of all Ethereum network users.

This activity will reduce the OP token supply over time, impacting price and encouraging more users into Optimism.

Over what period of time will the tokens be distributed?

Within 3 to 6 months.

How much will your project match in co-incentives?

We are seeking funding from other communities, however at the moment we aren’t able to monetarily co-incentivize or we would have already! We believe providing Ethereum Validator Nodes are an essential public good and seek Optimism’s help in achieving this. We look forward to your support. Stay Optimistic!

Relevant Links

Twitter
GitHub
Gitbook
Terms of Service

11 Likes

please also post this on discord under #gov-temp-check

edit:- Governance Fund Phase 1: How to Create a Proposal

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Will be following this!

Done. You can find the link to the thread on Discord here.

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thank you. I saw the proposal in discord.

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I support this proposal. I think funding validators is a great idea and I like the token burn stratergy.

I agree that funding public goods like validators and burning $OP tokens is a win-win for Optimism.
In the proposal it says you request funding for 10 validator nodes. Why 10 and not 100?

100 Validators would burn 10 times as many tokens. Even if the proposal asked for a 10x increase in OP tokens that would be like ~4% of the governance fund which sounds like a good deal to me.

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I agree with @Optimus, this is a good proposal and you should consider increasing the OP token request. Quick question, what percentage of the Validator rewards will be spent on burning OP tokens?

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You make a good point @Optimus. 100 Validator nodes will burn 10 times more OP tokens per quarter. Validators are a core part of Ethereum and Web3, and we believe Optimism shares our vision for a decentralized and open ecosystem. We will update our proposal if there is sufficient support for this suggestion.

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Hi @Takeshi_Kovacs, Raptor will allocate 50% of all ETH rewards to purchase OP Tokens from the open market and verifiably burn the tokens. We will use the other 50% to fund more validators. A report of these activities will be made available in our Gitbook on a quarterly basis.

4 Likes

This sounds fair. I vote yes for this proposal

Thanks @netrunner , this looks well thought out!

I’m interested in seeing how this progresses.

Hello Raptor,

I support your proposal and will be voting ‘For’ after the 23rd June.

Your proposal is unique in this Phase, and I admire the elegance in how you’re seeking funding to run straight-forward validator operations.

Your reward for funding structure (i.e. buy back & burn from 50% of Validator Rewards) and the response it has garnered from the community in the replies is so impressive that, as of today, I have mimicked the idea and updated my own Draft Proposal with a similar reward/incentive model. I hope this is okay with you, remembering that imitation is the sincerest form of flattery :slight_smile:

All the best with the upcoming Vote, I hope you succeed.

Kind regards,
Axel

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Thank you. We believe the reward for funding structure ensures all parties benefit.

We look forward to everyone’s support to fund this essential public good.

All the best with your proposal. :clap:

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@Axel_T is right. This proposal is unique and well thought out. You have my support.

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I strongly support this proposal. It benefits Optimism and Ethereum which is exactly what the Optimistic Vision is all about.

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This proposal would be good if not for the fact you are going to need to dump the OP into ETH to be able to fund the 10 nodes you are wanting!

You say you plan to buy back OP on a quarterly basis using 50% of the rewards from the Ethereum validators, however to even buy back and burn the initial grant you would have dumped it would take several years.

I don’t see any actual true benefit to this proposal as its basically giving OP to sell on the market to fund ETH nodes, but to never see that OP returned in the same amount or more because it would take way to long at current ETH staking rewards!

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Thank you @cryptouser42 for taking the time to review this proposal.

You are correct that in order to fund these public goods, OP tokens would require swapping to ETH.

This proposal seeks to realize Optimism’s Vision in supporting public goods such as Validators Nodes which benefits Optimism, Ethereum, and the Collective as a whole. This is why Optimism is Granting 100% of centralized sequencer profits to Ethereum protocol development, because it is a core part of Optimism’s ethos.

The question you’re really asking, is that over time, will using Validator rewards benefit Optimism and Ethereum?

The answer to that question is yes.

Your argument is predicated that the grant ROI takes too long, using variables such as the current price of ETH, the current price of OP, and current rewards for running Validator Nodes.

It assumes that the market price and Validator rewards will remain the same. They will not. Markets will stabilise and return to the mean, prices change, and rewards recalibrated.

Consider in the past 7 years, Ethereum has greatly appreciated in no small part to the incredible work that people, projects and communities have put in to build atop it, including Optimism.

As ETH appreciates we will be able to acquire even more OP tokens to burn, courtesy of all Ethereum network users.

Ethereum will be here for decades to come, and so will L2 solutions like Optimism. I wouldn’t bet against Ethereum.

We look forward to your support.

Stay Optimistic!

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This answer wins the internet

morgan-freeman-clapping-gif

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I disagree with this view. Validators provide stable returns instead of ponzi schemes with unrealistic APRs. Just have a look at the damage caused by the Luna and Celsius fiasco.

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