K9 Finance DAO Proposal: Bone Crusher Boost Campaign

General
1

K9 Finance DAO Proposal: Bone Crusher Boost Campaign

(1) Introduction and Objective

This proposal outlines a 30-day campaign to incentivize new BONE staking on the Ethereum chain through K9 Finance’s Bone Crusher liquid staking product. The primary objective is to increase the Total Value Locked (TVL) in knBONE, attract new users to the platform, and boost activity both on Bone Crusher and within the broader Shibarium ecosystem. This will be achieved by offering a 2% bonus, paid in $KNINE, on all new BONE staked during the campaign period. The $KNINE rewards will be sourced from the previously allocated, but currently undistributed, retro airdrop tokens.

(2) Benefits to K9 Finance Community

• Increased TVL: Attracting new BONE deposits will directly increase the TVL of knBONE, strengthening the overall health and stability of the K9 Finance platform.
• Enhanced Liquidity: More staked BONE translates to more knBONE in circulation, improving liquidity and making it easier for users to trade and utilize knBONE within the Shibarium ecosystem.
• New User Acquisition: The incentive program is designed to attract users who are not currently staking BONE through K9 Finance, expanding the community.
• Shibarium Ecosystem Growth: By incentivizing BONE staking on Ethereum, which then results in knBONE usage on Shibarium, we contribute to the overall growth and activity of the Shibarium network.
• Rewarding the Community: The campaign directly rewards those who contribute to the growth of the K9 Finance ecosystem.
• Efficient Use of Existing Resources: The KNINE needed for this proposal comes from the already allocated airdrop.

(3) Proposal Details

(a) WHAT:

A 30-day campaign offering a 2% bonus, paid in $KNINE, on all new BONE staked through K9 Finance’s Bone Crusher product on Ethereum.

(b) WHO:

• Eligible Participants: Any Ethereum wallet that stakes additional BONE through the K9 Finance Bone Crusher contract during the campaign period. Wallets with existing stakes are eligible for the bonus on any net new BONE staked. There is no minimum BONE staking requirement to participate.
• K9 Finance DAO: Responsible for overseeing the campaign, distributing rewards, and conducting the final review.
• K9 Finance Development Team: Responsible for providing the necessary data snapshots.
• K9 Marketing Sub-DAO: Responsible for promoting the campaign and educating potential users about the benefits of liquid staking with K9 Finance.

(c) WHERE:

• Staking will occur through the existing K9 Finance Bone Crusher liquid staking interface on the Ethereum network.
• $KNINE rewards will be distributed to eligible Shibarium wallet addresses.

(d) WHEN:

• Campaign Start Date: The campaign will begin approximately 30 days after the official conclusion of the K9 Finance Retroactive Airdrop. The exact start date will be proposed by the K9 Marketing Sub-DAO and must be approved by the Management Council. Once approved, the start date will be announced at least 72 hours in advance, via official K9 Finance communication channels (Telegram, Discord, X, website, and forum). This delay allows for the airdrop to be fully distributed, for any related issues to be resolved, and ensures sufficient time for marketing and communication of the campaign.
• Campaign Duration: The campaign will last for 30 calendar days, beginning at 00:00:00 UTC on the announced start date and ending at 23:59:59 UTC on the 30th day.
• Snapshot 1: Taken at the start of the campaign (at the official start date and time). This snapshot will record the existing BONE staked by all Ethereum wallets that have ever interacted with the BoneCrusher contract. This establishes the baseline for calculating new staking.
• Snapshot 2: Taken at the end of the campaign (30 days after the official start date and time). This snapshot will record the BONE staked by all relevant wallets. The difference between Snapshot 2 and Snapshot 1 will determine the “new BONE staked.”
• Reward Distribution: Rewards will be distributed within 7 days after the end of the campaign (i.e., within 7 days of Snapshot 2). The Management Council will announce the precise distribution date.

(e) HOW:

  1. Announcement and Promotion: The K9 Marketing Sub-DAO will announce the campaign details, including the start and end dates, eligibility criteria, and reward structure, across all K9 Finance communication channels (Telegram, Discord, X, website, and forum).
  2. User Participation: Users stake BONE through the Bone Crusher interface on the K9 Finance website during the campaign period. Users will also be required to provide their Shibarium wallet address through a designated form on the K9 Finance website.
  3. Snapshot Data: The K9 development team will provide data from the two snapshots, identifying eligible wallets and their “new BONE staked” amounts.
  4. Reward Calculation: The 2% bonus will be calculated based on the USD value of the new BONE staked at the time of the ending snapshot (30 days from start date at 23:59:59 UTC), up to a maximum of 150,000 BONE staked per wallet. This USD value will then be converted to $KNINE based on the prevailing market rate on Shibarium (using the KNINE/BONE pool) at the time of distribution.
  5. Reward Distribution: The calculated $KNINE rewards will be distributed to the provided Shibarium wallet addresses from the reallocated airdrop token supply. The K9 Finance DAO confirms that cross-chain distribution to Shibarium is already supported.
  6. Funding: Management council to release the necessary funds.

(f) Funding

• The initial funding for this campaign will be $5,000 USD equivalent of $KNINE, sourced from the unclaimed retro airdrop allocation.
• An additional $5,000 USD equivalent of $KNINE will be set aside as a reserve. This reserve will be used only if the campaign significantly exceeds expectations, requiring additional rewards to be distributed.
• Any unused funds from either the initial allocation or the reserve will be returned to the K9 DAO treasury at the conclusion of the campaign.

(4) Impact Assessment

• Short-Term Impacts:
• Increased BONE staking on the K9 Finance platform during the 30-day campaign period.
• Growth in the number of K9 Finance users and knBONE holders.
• Increased awareness and positive sentiment around K9 Finance.
• Potential (but not guaranteed) positive price impact on $KNINE due to increased demand.

• Long-Term Impacts:
• Stronger foundation for K9 Finance’s liquid staking product.
• Increased Total Value Locked (TVL), contributing to platform stability.
• Enhanced reputation within the Shibarium ecosystem.
• Increased Platform Usage: By incentivizing staking, the campaign encourages greater utilization of Bone Crusher, leading to a more active and engaged user base.
• Stronger Shibarium Ecosystem: Increased TVL and BONE transactions contribute to a healthier Shibarium ecosystem.

• Risks and Mitigation:
• Risk: The 2% $KNINE bonus may not be sufficient to attract a significant number of new users.
• Mitigation: The marketing campaign must clearly communicate the benefits of K9 Finance’s liquid staking beyond just this temporary bonus (e.g., knBONE utility, ongoing staking rewards).
• Risk: BONE price volatility during the campaign could impact the perceived value of the $KNINE reward.
• Mitigation: Using the USD value at the end of the campaign for calculation provides some protection, but volatility remains a factor.
• Risk: The available rewards from the reallocated airdrop tokens may not last 30 days
• Mitigation: Set a Maximum reward cap per wallet.

• Metrics for Success:
• Increase total BONE staked through K9 Finance by at least 10%.
• Achieve a total of $750,000 increase in TVL.
• Positive community sentiment and feedback regarding the campaign.
• Increased social media engagement and reach during the campaign period.

10 Likes
2

Built to reduce sell pressure seen in many airdrops and Campaigns not noted in the proposal itself. Of all the Measurable metrics of bone crusher, Bone staking on the etherium chain is the most underperforming and where I beleive we could get the most bang for our buck.

2 Likes
3

I support this proposal both as an individual and as the SubDAO lead.

2% is a good incentive and anyone who claims it “isn’t enough” can kick rocks. If the full funding runs out due to demand, that’s a good problem to have. The initial $5k could go quick, and that’s great.

We would benefit from adding more $BONE holders to our community through this campaign.

The proposal is clear, concise, has a direct and limited scope, measurable outcome parameters, and is simple to read. Well done.

6 Likes
4

Very well put together. Seems like a good idea to pursue. Won’t get reviewed on todays Roundtable (has to be live for a week in forum before RT can vote on it).

I will push this conversation forward and evaluate what the impact/cost would be on team before next month so we can have a clear vote on it.

Thanks Frank!

5 Likes
5

How do we make sure the campaign is not gamed?

People can withdraw their existing delegated Bone before it starts and deposit during the campaign.
They could also send tokens to a different wallet for a ‘fresh start’.

4 Likes
6

The proposal is surely open for suggestions…I have some thoughts but have not put them all together yet.

4 Likes
7

Similar to my comment on the allocation proposal, I love Franks idea here and once again, it is well within budget, means, and scope of something like the SubDAO.

2% of something is still better than 0% of anything, and if it generates additional conversation and bullishness around K9, then all the better.

Even if folks move out of delegation and into the campaign, even that itself generates volume, movement, and shows engagement and if it rewards those folks, they are still doing something and creating engagement around the campaign to attract others to do the same with Bone Crusher.

6 Likes
8

I am very simple and I say do it. :grin:

6 Likes
9

This^ :100:
I’m positive to everything that brings actions and transactions on Shibarium. Just Do DAO It!

4 Likes
10

"Thanks for your feedback and raising a valid point about ensuring the campaign remains fair and effective. You’re absolutely right that users could withdraw their delegated Bone before the campaign starts or transfer tokens to a new wallet for a ‘fresh start.’ While it’s tricky to completely eliminate this without creating barriers for new and existing users, I think the focus on driving activity and transaction volume will still deliver value to the platform.

The goal here isn’t just short-term metric boosts but long-term growth—like bringing in new users to Bone Crusher and reducing sell pressure over time. Even if some take advantage of the mechanics, the increased engagement and visibility should strengthen the ecosystem as a whole.

5 Likes
11

Well put.
I think it is easy to see that Frank is thinking this through thoughtfully and thoroughly.

3 Likes
12

Awesome proposal… I support

2 Likes
13

Supported and if some withdraw and redelegate so be it. Lets be honest here, in the end we are all here to make $.

2 Likes
14

Apply scrutiny on the wallets before dispersing the funds, I say. This means an aggregate percentage of receivers should fit into certain categories as to not let a “landslide” happen. (All of the rewards going to very similar wallets.) Make sure there is something that makes it non partisan - Not going to a specific type of wallet holder whose activity suggests it is only seeking the prize and nothing more.

2 Likes
15

I dig it, let’s be honest, anything positive for our community I support.

5 Likes
16

This proposal was voted on during RToD #13 and is now live on Snapshot for a token holder vote.

https://snapshot.box/#/s:k9safe.eth/proposal/0x8ae65575f537977c775587a894c2bc11fe9d5f1b711f50c9611adeee653befc2

A few modifications for increased flexibility were made related to the duration and boost amount.

4 Likes