KYF V1 Recap & Next steps

Sep 01, 2020


Firstly, we're super blown away by the response with KYF. We didn't think too many people would be on and instead our own expectations were completely destroyed. We totally get that there's a bunch of confusion and mania so we want to take the time to address everything going on and provide clarity for what's next.

So when we coded up the contracts we didn't think we'd need to enforce a hard cap given there were only 600 people in the discord so we thought if 300 sign up we're good to go and maybe a few would go over. Looking back we should have probably put the contract behind a proxy or something which could let us modify things on the fly. At the moment there's about 680 verified users - which is almost double! There's been a few lines of thought which we've heard and here's our reasoning around each one.

  1. The first 300 people should be allowed in and everyone else should be kicked off since the 300 showed dedication to get in. We completely understand this and would agree, however the main criteria here is engineering resources. In order to deploy a new contract, find the first 300, pay for the gas to encode it all in and get that going is at least 1-2 days of engineering work which honestly will set everyone back to playing level 2. We want to make sure that the time spent is done to maximise value in the greater scheme of things. To those that aren't fully on-board with that we really do apologise for the mishap, we honestly didn't know things would get this heated!
  2. The people who didn't get in are at a disadvantage since we didn't announce beforehand when Level 1 would drop. Also some people were asleep in other timezones meaning they couldn't be around if they wanted. This is also completely valid and agree with this point of view since we'd be annoyed too if we didn't get in with a fair heads up. Furthermore, if there's a special advantage given to the first 300 then people are at a back foot right out the gate.
  3. People are noticing that some people had multiple accounts and managed to verify multiple times. The key thing to remember here is that each verified user will be capped with how much they can farm. We totally understand the fear of whales but if you do the math here it isn't that bad.

    Let's break it down: remember, the whales in DeFi are people with $100m farming and dumping on us regular people. We don't want that to happen to Arc Angels since we've felt your pain. That's why KYF was introduced. Now since each verified member will have a cap the maximum someone with 10 addresses can get with a $1k cap (example cap) would be $10k. This is still 10,000x better than the alternative. Furthermore you can't game the system since it uses checks up to a certain block number. Big brain moves.

What's next?

So given the above where do we go as Arc Angels from here? After careful consideration we wanted to strike a balance between fairness, future viability of the protocol and transparency.

The two tensions primarily lie between those who showed dedication to get inside the original 300 allocation and the remaining people who didn't have a fair chance. Here's the most reasonable path forward in our view:

  1. KYF v1 has 644 verified users. These will all be included as part of v1. The work to migrate the exact first 300 is too high and not worth the engineering effort given current timelines. The contract is: https://etherscan.io/address/0x404789fd049f56bd9924419f12afba1b2573fc20 and we've also ensured no more verifications can be made by setting the verifier to 0x0 https://etherscan.io/tx/0x5eabe09280b1181bebd90d6069207ea90e3138bebd8b6ae962daafd9a5274d02
  2. There will be a KYF v2 which will allow for up to 2356 verified users. This will not be a beta test and will be the only way for people to earn ARC tokens for a certain time period. We want to learn from the mistakes of the last round and will be doing this in two stages. The first will be an announcement of when the window starts and the requirements laid out clearly. 24 hours after the announcement we'll be enabling submissions to the KYF contract. This ensures everyone will be sufficiently educated and we can add anything we think we should include. Stay tuned in the #village-herald channel for when v2/level 1 will be announced.
  3. Without going into details, KYF v1 users will have a minor advantage to earning ARC tokens over KYF v2 users. The reasoning around it is that choosing fairness over a larger subset of users is a higher ideal than rewarding the first 600 that were on Discord at the right time. That being said we want to thank and acknowledge those that were super Arc Angels who got in the first  - we're really amazed by you all.
  4. It's important to note that rewards will not be claimable immediately. There will most likely be a 1-2 month delay before they go live to ensure a good portion of supply is on the market and we don't cause "a supply side liquidity crises" as we feel like there may be one.

Once again, thank you all for your hype and excitement. It makes building in DeFi so much more fun.

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