goRICE is an acronym for Governance RICE. Users can lock their RICE for a minimum of 3 months, a maximum of 12 months, in return the user is given goRICE.
Philosophy
The design philosophy of goRICE references Curve Finance's veToken, aiming to reduce the risk of governance attacks to maintain the system's health. Simply put, users must lock their tokens for a period of time to receive voting power, the longer the lock-in period, more voting power they gain. Check Curve's documentation to understand the design philosophy of the token.
goRICE Benefits
goRICE holders are given the following benefits:
Collecting Compensation
As a goRICE holder, you can collect compensation from the Compensation Pool (every protocol fee distribution cycle) for your contribution to maintaining the security of the Governomy network. See Governomy for more information.
Earn Trigger Reward
Buyback execution require manual action in the business flow of the economy part of Governomy. A Buyback action include the following transactions:
- Buyback RICE
- Burn RICE (when RICE Reward Pool Balance => Current cycle RICE reward amount)
- Calculate the total number of RICE transfers from the RICE Reward Pool to the RICE Claim Pool in the previous Distribution Cycle (when RICE Reward Pool Balance > 0 and > Current cycle RICE reward amount) and execute the transfer transaction.
- Transferred the buy-backed RICE to RICE Claim Pool (when RICE Reward Pool Balance < Current cycle RICE reward amount, or RICE Reward Pool Balance = 0)。
Any goRICE holder has access to execute Buyback & Burn transactions in Governomy to earn trigger rewards. See Governomy for more information.
Governance
- The goRICE balance represents the voting power of a user in the DAOSquare Governomy, which allows them to propose and vote on on-chain proposals.
- Additionally, a crucial part of Governomy is economic adjustments, Including Protocol fee scale, and fee distribution - more info on Proposals.
The following table shows the rights of goRICE holders in DAOSquare Governomy.
Rights |
Claim compensation from the Compensation Pool in each protocol fee distribution cycle. |
Execute Buyback & Burn transactions in Governomy to earn trigger rewards. |
Modify all Adjuster parameters (by proposing and participating in the Adjuster category proposal in Governomy). |
Change the Protocol Fee % (by proposing and participating in the DAOSquare Incubator Protocol Fee Adjustment proposal). |
Upgrade the DAOSquare Incubator Protocol contract (by proposing and participating in the DAOSquare Incubator Protocol upgrade proposal). |
Upgrade the Governomy contract (by proposing and participating in the Governomy Contract upgrade proposal). |
Treasury management (by proposing and participating in Swap proposals). |
Development strategy execution, such as product development, Marketing, BD, Operation, service expenditures, events, investments, etc. (by proposing and participating in Expense proposals). |
Locking Formula
When locking RICE to goRICE you are rewarded with an amount of goRICE based on how long and how many you lock, the minimum time is 3 months, and the maximum time is 12 months, as following the formula:
locktime is denominated in months. The maximum lock duration is 12 months and the minimum is 3 months.
RICE Locker offers four Lock duration options: 3 months, 6 months, 9 months, 12 months. The longer you lock the more goRICE you receive.
Lock Days | goRICE | RICE Lock | goRICE Receive |
3 Months | 25% | 10,000 | 2,500 |
6 Months | 50% | 10,000 | 5,000 |
9 Months | 75% | 10,000 | 7,500 |
12 Months | 100% | 10,000 | 10,000 |
To find out how to lock see the guide here: lock RICE tokens.
Characteristics
Characteristics | Description |
Non-reversible | Locking is not reversible. If a user decides to vote-lock their RICE tokens, they will only be able to reclaim the RICE tokens after the lock duration has ended. |
Non-transferable | goRICE is not transferrable. That means goRICE holders cannot transfer goRICE in their wallet to any other address. |
Linear decay with time | The amount of goRICE a user has will decay over time as their unlock date draws closer. The lockTime parameter in the equation above should more aptly be called lockTimeLeft as a user's goRICE is constantly recalculated. For example, if you lock 10,000 RICE for 12 months, you get 10,000 goRICE. The 10,000 goRICE will decay linearly over the next 12 months, and at the end of 12 months, the goRICE balance in your wallet will decline to zero. |
Maximum duration | The maximum duration of a lock is 12 months, Due to the decay mechanism, they must extend their lock to keep the 1 RICE: 1 goRICE ratio. Users can withdraw their RICE at any time after their goRICE has decayed to 0 (lock time has expired). |
Cannot have multiple locks | A user cannot have multiple locks with different expiry dates. However, a lock can be extended, or additional RICE can be added to it at any time. |
Change Lock
There are two ways a user can change their lock. They can add to their lock or they can extend their lock. What happens in both situations and how it affects their goRICE and the decay is shown in the charts below.
Extending Locks
Extending locks means increasing the time left on a lock. A example if Jack locked 10,000 RICE for 12 months, after 6 months he would only have ~5,000 goRICE left as his lock time is now 6 months. If he extended his lock to be 12 months again after these 6 months, he would again have 10,000 goRICE:
Adding RICE To Locks
Adding RICE to locks means the unlock date will remain the same, but more RICE will be locked, meaning more goRICE. If Jack locked 10,000 RICE for 12 months, but after 6 months added 30,000 RICE to his lock, he would have 20,000 goRICE (40,000 RICE total locked for 6 months). This goRICE would continue to decay to 0 over the next 6 months:
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