MGP-0: Fund MiniPay airdrops & incentive campaigns

Governance
1

GMento, this is Philip from Mento Labs with our very first governance proposal!

Summary

This very first Mento Governance Proposal (MGP) aims to give an allowance of up to 10 million MENTO tokens from the Community Treasury to the Mento Protocol Foundation for the purpose of funding MiniPay airdrops and incentive campaigns.

These funds are to be used exclusively for MiniPay airdrops and incentive campaigns, which aim to attract new users and reward active ecosystem participants.

Motivation

Opera MiniPay is a dollar stablecoin wallet with a “drag and drop” Pockets feature powered by the Mento Protocol enabling users to seamlessly swap between stablecoin pockets in their MiniPay wallet. MiniPay has shown promising potential as a user-friendly and efficient savings and payment solution with over 3M users in Africa. To capitalize on this momentum and accelerate growth, we believe it is important to continue running strategic airdrops and incentive campaigns. These initiatives will help:

  • Increase awareness and adoption of MiniPay (and thereby increase usage and adoption of the Mento Protocol)
  • Reward early adopters and active users
  • Stimulate ecosystem activity and token circulation
  • Attract new developers and partners to build on MiniPay and Mento

Specification

This proposal outlines the following actions:

  1. The Community Treasury approves up to 10 million of its MENTO tokens to be spent by the Mento Protocol Foundation with the sole purpose of funding MiniPay airdrops and incentive campaigns.
    • Roughly 2m out of these 10m tokens are earmarked retroactively for the inaugural MiniPay campaign that ended on October 1, 2024
  2. Require the Mento Protocol Foundation to provide quarterly reports in this governance forum on the usage of funds and the impact of the campaigns, with the first report being due by January 15, 2025 (and then every subsequent 3 months until the 10m MENTO tokens have either been used up or the approval has been revoked)
    • Reports can be simple forum post updates detailing the use of funds and the performance of airdrops & incentivization campaigns (i.e. impact on daily active users, stable tokens in circulation, transaction volume)

Rationale

We allocate the tokens to the Mento Protocol Foundation (instead of a wallet under MiniPay’s control) to ensure that the Mento DAO still retains some degree of control to ensure new MiniPay airdrops and incentive campaigns are well-designed and make sense. This approach allows for more agile decision-making by the Mento Protocol Foundation, while still maintaining transparency through regular reporting.

Risks and Mitigations

  • Misuse of approved funds: Mitigated by requiring quarterly reports and limiting the use to specific purposes
  • Market impact: The Mento Protocol Foundation is advised to distribute tokens gradually to minimize market disruption
  • Regulatory concerns: The Mento Protocol Foundation will ensure compliance with relevant regulations in all jurisdictions where campaigns are conducted

Timeline

If approved, the Mento Protocol Foundation will have the authority to fund MiniPay airdrops and incentive campaigns with up to 10m MENTO. The first quarterly report is due by the end of Q4 on January 15, 2025 (allowing 15 days after the quarter ends to account for the end of year holidays).

Subsequent reports would then be due on the following schedule:

  • April 15, 2025 - Q1 ‘25 Report
  • July 15, 2025 - Q2 ‘25 Report
  • October 15, 2024 - Q3 ‘25 Report
  • January 15, 2026 - Q4 ‘25 Report
  • etc

Execution Code

{
	"calldatas": [0x095ea7b30000000000000000000000003468d23a0b1ab3ab9a537813166a8f7ff1947014000000000000000000000000000000000000000000084595161401484a000000],
	"targets": [0x7ff62f59e3e89ea34163ea1458eebcc81177cfb6],
	"values": [0]
}

# Calldata created via:
cast calldata "approve(address,uint256)" 0x3468D23A0B1aB3Ab9A537813166A8f7ff1947014 10000000000000000000000000

# You can verify the calldata via:
cast calldata-decode "approve(address,uint256)" 0x095ea7b30000000000000000000000003468d23a0b1ab3ab9a537813166a8f7ff1947014000000000000000000000000000000000000000000084595161401484a000000
4 Likes
2

It’s great to see the first MGP go up for discussion. The current outline of the proposal makes perfect sense to me, especially with the steady growth of MiniPay and the increasing number of African stablecoins in the Mento Protocol.

2 Likes