Gro is launching a unique vesting model to drive long-term sustained engagement with the protocol. The basic principle is to increase the influence of DAO members who are engaged. If you interact regularly with the protocol and have a long-term view, then the protocol will increase your influence through the GRO DAO Token.
How to earn GRO TLDR
- Earn GRO through airdrops, liquidity mining or Vesting Bonus.
- Claim your GRO into a 12 month long vesting position.
- Come back every two weeks to claim your share of the GRO Vesting Bonus.
- Exit Rewards vesting whenever you want to receive GRO in your wallet. The longer you wait, the more you get. Any locked GRO you give up is added to the global Vesting Bonus.
- Gro is decentralising governance by issuing GRO through liquidity mining Pools and airdrops . They can all be claimed in the Rewards page on https://app.gro.xyz/rewards
- When you claim GRO from Pools, Airdrops or the Vesting Bonus, they are added to your personal GRO vesting position, and do not go straight to your wallet.
- The first GRO reward you claim starts your personal vesting schedule which lasts for 12 months (the vesting period) after your first claim.
- Your vesting schedule starts at 10% of your GRO unlocked on your first claim and increases on a linear basis to 100% one year after the end of your vesting start date. Leave early and get fewer GRO, leave later and get rewarded for your diamond hands.
- Removing assets from Vault, PWRD or Pools will not affect your GRO earned so far and will not affect your vesting schedule either.
- Your vesting schedule is for your whole wallet, not per claim. Additional claims, if you choose to make them, will increase your vesting GRO and adjust your vesting period.
- You can exit your vesting and move GRO into your wallet whenever you want, but if you exit early then you will lose anything that has not unlocked yet.
- Example: if you left on day 1, you would keep 10% of your vesting GRO; if you left after 6 months, you would get 55%; and if you stay for the full year, you would keep 100%.
- Here’s the twist: any GRO you give up will be added to the global Vesting Bonus. So those who stay with the protocol can claim the locked GRO of those who leave! Anything that is given up goes back to the remaining more dedicated community members.
- At any point in time, you may claim your share of the global Vesting Bonus. Your share of the Vesting Bonus is calculated as Your locked GRO / Global locked GRO. This means there’s an incentive to increase your locked GRO as you can claim a larger share of the Vesting Bonus.
- It doesn’t happen automatically though — you have to claim the vesting bonus. After you have claimed a Vesting Bonus you may not do it again until 14 days later (the cooldown period).
- Whenever you claim any kind of GRO reward, your Vesting start date is adjusted. Your vesting end date continues to be 365 days after your Vesting start date.
- The new Vesting start date is calculated as the GRO weighted average of your old vesting start date and the time when the claim is made. Because it’s a weighted average, the bigger the new claim is in relation to your old GRO, the greater the increase in your start date (and the greater the extension to your full vest time). Conversely, if you just make a small additional claim your start date won’t increase as much. This is to prevent sybil attacks with multiple wallets or gaming the system.
- Both the cool down period after a Vesting Bonus claim, and the max length of the vesting period are DAO controlled parameters. They allow the DAO to find the right balance between sufficiently large bonus claims for gas efficiency and frequency of engagement. The DAO can use these mechanics to put DAO control into the hands of those with a high level of engagement and long-term view without penalising smaller wallets.
How does Vesting Bonus work? A village analogy with suitcases….
Imagine a Gro village, and in the middle of it is a shining bowl full of GRO tokens…. 🏆
You already have your own GRO tokens safely tucked away in your vesting contract back home. The vesting contract sits in the corner of your house, gradually unlocking more tokens each day. So some are locked, some are unlocked. But that’s not enough for you. You want more! So you get a suitcase… 💼
The size of your suitcase is based on how many locked GRO you have back home already. The more locked GRO you already have in the vesting contract, the bigger your suitcase.
Every now and then some people in the village get bored of village life and decide to leave. They are seeking the bright lights of the city again. But the rules of the village state that when they leave, they can only take the unlocked GRO from their vesting contract back home. The locked GRO they have to put into the community GRO bowl on their way out.
Now why does this matter to you…? Because every two weeks, anyone in the Gro village can take their suitcase to the GRO bowl and fill it with more tokens! These are the tokens given up by the paperhands that left the village.
This means there are constantly tokens going into the bowl (from locked GRO given up) and tokens going out (from others filling their suitcases with more GRO from the bowl).
If you leave it longer — there might be a whale who leaves the village and the bowl fills right up! But if you leave it too long — the rest of the village will go down every two weeks and gradually empty the bowl with their own suitcases but you aren’t 😢
How do you play it? You decide….
Here’s an example of how this might work in practice. In this example someone claims 1000 GRO at the start and then after 6 months they are roughly 55% unlocked. They could exit at 6 months with 550 GRO but in this example they choose to claim another 100 GRO instead. Now they can wait and see their locked GRO gradually reducing, and their unlocked GRO (the amount they can exit with) gradually increasing.
The vesting start date calculation is a weighted average between the existing start date and the new claim date. This can be a bit complex, so we’ve set out the equation below as well to help.
Vesting start date calculation:
Locked GRO calculation:
Frequently Asked Questions
When will rewards claims be enabled?
- Liquidity rewards claims were enabled on Wednesday 13 October.
- Vesting Bonus rewards claims were enabled on Wednesday 13 October.
- Airdrop rewards claims will be enabled later this week.
Are all GRO rewards subject to a 12 month vesting?
- Yes. Everything you claim (whether from liquidity mining, airdrops or Vesting Bonus rewards) will all add into your personal vesting position.
- You can exit at any time to take your unlocked share, but you lose anything locked at that time.
- Your vesting calendar will never have longer than 12 months left to go (i.e. it’s capped at 12 months from your latest claim date). So if you claim all your rewards today and then do nothing for 12 months you would be able to exit for the full amount you claimed.
- Any additional claim will extend the time remaining on your vesting calendar: e.g. if you made a small claim today and in 9 months made another claim, (especially if that second claim was larger) your overall calendar would take more than 12 months to be fully unlocked (from the date you first claimed).
How do extensions to my vesting calendar work?
- While your calendar is vesting, you can continue to claim additional GRO rewards. Each claim extends the time remaining in your vesting calendar by updating your vesting start date as the GRO weighted average of all your claims dates and then running for 12 months from the new start date.
- The new vesting start date is based on the weighted average between your existing start date and your new start date: e.g. if you had 900 GRO vesting with an existing start date of 1st June 2021 and you claimed another 100 GRO on 1st July 2021, your new vesting start date would be 4th June 2021.
- The vesting calendar then runs for 12 months from the new vesting start date.
- This mechanic is important as if not, the vesting system would be easy to game: you could start off multiple wallets with tiny amounts vesting, and then in future use them as a path to get huge amounts of GRO claims instantly unlocked.
- It also means your opportunity to claim rewards from the Vesting Bonus is both bigger (as you build up your vesting position) and lasts for longer. See more on this below.
- The total vesting period is only more than 12 months if you choose to make further claims during that time. You always have the option to stop making further claims and just wait for your claimed rewards to fully vest.
Can I exit immediately?
- All rewards vest over 1 year. However, on day 1 (i.e. the first day you claim) you can exit, collecting 10% of your claimed rewards and give up the remaining 90%.
- If you decide to stay, you continue to vest and you also get the chance to claim given up GRO from others who decided to exit (Vesting Bonus rewards).
What happens to the given up rewards — do they get burned?
- No. Given up GRO are put into the Vesting Bonus contract where you can claim from them once every two weeks if you want to (but it’s not compulsory).
- The share of GRO that you can claim from the vesting bonus pool is the same as your share of unvested GRO out of the global unvested GRO. You will be able to see from your personal dashboard what amount of GRO you’re eligible to claim at any time.
- Note: this amount will change depending on the behaviour of other users, so it can go up or down. That means if you don’t claim, it doesn’t necessarily keep increasing — so you will get more rewards if you claim regularly (vs waiting for rewards to accrue).
- Once you click claim on the Vesting Bonus, you can’t click it again for another two weeks.
- If it turns out that we have a lot of diamond hands so the average claim every two weeks is very small, then the DAO can increase the cooldown period, so that it doesn’t disadvantage people with smaller positions (because a larger amount will build up, so it makes more sense to pay the gas).
Can I stake my GRO rewards while they are vesting?
- No, you can’t stake GRO rewards while they are vesting, but you can gain more GRO in other ways instead (using the vesting bonus).
- While your GRO rewards are vesting, you have the opportunity to claim the Vesting Bonus from the bonus pool of any given up GRO every two weeks.
- Although it isn’t possible to calculate the return as there are many variables (including how often you claim, the behaviour of other users and gas fees), this will provide a way to keep increasing your vesting GRO position without staking.
Does this mean the liquidity I provide to GRO is locked?
- No. You can withdraw your initial stablecoin liquidity (Gro Vault or PWRD) whenever you choose within that time period without suffering a penalty (other than the 0.5% withdraw fee that goes into APY for all users).
- If you start staking or using pools, you can unstake your staked assets at any time with no protocol fee.
- The airdrop and liquidity mining GRO rewards have a 12 month vest and if you exit the GRO rewards then you will give up the locked portion.
When does my vesting contract begin?
- Your vesting contract begins when you claim the rewards. You can then choose to withdraw the vested portion anytime.
- For example, you could withdraw 10% on day 1 and give up the remaining 90%, or you could decide to wait until all 100% is vested after 12 months before withdrawing. You could also choose any time point in between these two extremes.
Can I transfer vesting positions between wallets?
- No, it’s not possible to transfer your vesting position.
What is the rationale behind this vesting mechanism?
- The basic principles of the design is to reward long-term committed DAO members who are also engaged.
- If you’re long-term and continue to stay engaged, then the protocol will reward you with an increased stake in its governance.
How will this affect GRO’s circulating supply?
- Because of this mechanism, all the community incentives cannot come into circulation in month 1. At most, 10% (330k GRO) could appear in month 1 (if everyone chose to sacrifice their locked tokens), but this is unlikely.
Will I need to pay the gas fees every 14 days for claiming the given up rewards?
- Yes, each claim you make will need to be executed by the user.
- If it turns out that we have a lot of diamond hands so the average claim every two weeks is very small , then the DAO can increase the cooldown period from two weeks, so that it doesn’t disadvantage people with smaller positions (because a larger amount will build up, so it makes more sense to pay the gas).
The tokens we collect each 14 days from given up rewards — where do they get added to, once we do our fortnightly claim from the Vesting Bonus contract? Are they added to an existing vesting contract or is a new one created?
- They get added to your existing vesting position. So let’s say you have 100 GRO. 10 (10%) are unlocked and 90 are locked. Then you claim a vesting bonus of 50 GRO. After that you’ll have 150 GRO total in vesting contract of which 15 will be unlocked and 145 will be locked.
Will the team be eligible to claim from weak hands during the first year? Are their locked tokens completely out of the equation for now?
- Team, advisor and seed investors’ tokens are all subject to a 3 year vesting period with 1 year lockup.
- During the 1 year lockup these tokens cannot be accessed meaning they cannot (a) claim Vesting Bonus or (b) stake the tokens.
- Any tokens bought in personal capacity go through the same route as everyone else.
What’s the GRO contract address?
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