Fraxtal: Turning (Air)Drops into a Rain of Growth

Fraxtal, the innovative new chain, has recently launched, driven by a vision for exponential growth. Recognizing the pivotal factors for success—increased user activity and liquidity—the Frax team has introduced FLOX & FXTL points to enhance engagement.

Strategically positioning Frax in a competitive market involves onboarding projects and establishing unique selling propositions. While organic growth is inevitable, there’s an opportunity to collectively maximize Frax’s potential through a well-thought-out flywheel approach:

  1. Projects Launch on FRAX: Attracting projects to initiate on Frax lays the foundation for a robust ecosystem.
  2. Community Support: Signaling that projects airdropping tokens to veFXS holders will receive substantial marketing and community backing fosters a symbiotic relationship.
  3. Stakeholder Engagement: Encouraging more veFXS stakers not only boosts buy pressure for FXS but also attracts broader attention due to the steady rise in its value.
  4. Ecosystem Expansion: As FXS gains traction, there’s an inherent incentive for developers to join or contribute to the flourishing Frax ecosystem, creating synergies.
  5. Increased Activity: Growing activity in airdrops, staking, and feature utilization cultivates a robust DeFi environment within the FRAX ecosystem, accompanied by a more targeted marketing push.
  6. Community Growth: An active community leads to a larger marketing push, attracting strategic partners and offering more airdrop opportunities as projects witness swift adoption and revenue generation.
  7. Repetition: This cyclical process perpetuates continuous growth, establishing a self-sustaining and thriving ecosystem, especially during a bullish market phase where airdrops act as fuel for growth.

By collectively nurturing this flywheel effect, we have the potential to propel Fraxtal to new heights, positioning it as a prominent player in the evolving blockchain landscape.

Core Approach Summary:

The proposed core approach involves the DAO facilitating (1) the attraction of high-quality projects and (2) incentivizing their engagement with Frax, particularly through airdrops to FXS stakers. As the FXS price rises, the cost to fund these projects decreases, ultimately recuperating expenses from the overall growth of FRAX.

Now, the question arises: how can we accomplish this? The proposal suggests initiating a grants program on the FRAX website for projects launching on FRAX, subject to community voting. Applicants should (1) clearly outline their goals and positioning, (2) provide current status and deployment timelines, (3) specify the airdrop amount and requested funding. The grant, being retroactive, will have details clarified based on specific metrics and goals. A council of representative members can filter out projects, and a final vote can occur through the DAO.

Further discussions and refinements are crucial. At this stage, I invite users to provide feedback, both from the community and FRAX team members, before progressing to a more specific proposal and a DAO vote, allocating funds in a multisig for project funding. My initial inclination is to earmark 2 million in FXS to support approximately 25 projects over the next 18 months. This allocation is strategically planned to facilitate 25 airdrops, effectively covering the 2 million-dollar expense. Your insights and perspectives are crucial in shaping this approach and ensuring its success.

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