Hi everyone, I wanted to share an update regarding CELO Rewards:
We’ve distributed 2 balance-based rewards so far:
- In the first week, we distributed 773 CELO to 1,179 addresses. In the second week, we distributed 969 CELO to 1,334 addresses.
- The distributions cost less than 5cents in gas fees!! It’s quite exciting to be able to send so much value anywhere in the world at such a low fee!
We’ve made progress in getting people to hold balances above 20 cUSD, but there’s still a long way to go!
- A majority (89%) of confirmed addresses still don’t qualify for a reward (average balance <20 cUSD).
- This number used to be above 95% before we announced the program.
Total cUSD in circulation in confirmed addresses has almost doubled to $560k since we announced the program:
- While it’s hard to take full credit for this given the amount of potential cofounding factors, the timing of when balances started to pick up lines up well with when we announced the program
80% of people who received a reward qualified for tier 1 (average balance between 20 and 100 cUSD)
- However, Tier 3 is the highest growing tier (82% w/w growth in number of recipients)
How can I verify that the rewards are correctly distributed?
We published the script that we’re using here.
Once you verify the merkle root, you can verify in the contracts linked above in blockscout that the merkle root is contained in the bytecode. This is not optimal for now and we’re working on fixing the blockscout verification tool to provide more transparency.
Qualitatively
We have received some overall positive feedback on the program from users (especially people excited about the potential of having this longer term). There are a couple of points where we’re trying to improve:
- 80% of confirmed addresses don’t qualify for the lowest tier. We’re hearing especially in developing markets that saving 20 cUSD might be inaccessible to people. We will experiment lowering the lowest qualifying tier to 10cUSD to see if it creates more momentum. If this is not enough, we might create a 4th tier at 1cUSD for instance.
- We want to keep rewards coming on a weekly basis so people stay excited about the program: we have received a lot of positive feedback from the fact that the reward is distributed weekly, so we will continue doing weekly distributions after March 1st, but will reduce the amounts by 4x to stay in line with the end of the kickoff period
- Some end users got a bit confused about the concept of “average” weekly balance and how it differs from their “current” cUSD balance, and ended up not qualifying for the initial one or two rounds of rewards because they cashed-in a bit late. As a short term fix, we were a bit more lax for the initial two distributions with the minimum qualifying average balance (19 cUSD instead if 20, 99 cUSD instead of 100 and 499 cUSD instead of 500) so that no one has a bad surprise.
- We want to reward users for inviting others: we’re in the process of thinking about what that program could look like. Stay tuned!