PIP-6

BACKGROUND

We are now several months into the relaunch of Prosper, and with the recent announcements of a series of upgrades to the protocol and all the groundwork that has been laid thus far (from the token contract upgrade process to the strategic partnerships established to the latest actions executing PIP-5), we concluded Phase 1 and embarked on Phase 2: Protocol Scaling.

As we kick off Phase 2, we want to ensure that we are also continuing to build towards a community-driven future. As has been stated on the litepaper since relaunch, the dApp, and staking FAQs, the overall intent is for users to participate in the protocol by engaging with other community members and actively contributing to governance of the protocol—and get rewarded in the process as a result.

With this proposal and the start of Phase 2, we seek to evolve staking to include a voting-gated claiming mechanism to progress the intent and vision described above.

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PROPOSAL

In this next step towards a more community-driven future, we propose to implement voting-gated reward claiming for the core staking function to ensure active participation in governance from the community.

This implementation would function as follows:

• Timing: starting from the next claiming (i.e., on 1 April 2025 for the March staking cycle)
• Requirement: at least voted in one PIP in the preceding 3-month period at the time of claim
  • e.g., for 1 April 2025 claim, you need to have voted in at least one PIP during 1 January 2025 to 31 March 2025
  • e.g., for 1 August 2025 claim, you need to have voted in at least one PIP during 1 May 2025 to 31 July 2025
• Data source: based on Snapshot's on-chain voting record
• Along with this feature, we would also start rolling out a "regular PIP series" which will allow community members to start voting on the protocol's recurring (likely monthly) decision-making topics:
  • First recurring decision for the community to decide would be the type of BTC we distribute each month for staking rewards—currently we are providing $BTCB, which is the most plain-vanilla option on BNB Smart Chain (BSC) for convenience. But as the BTCfi ecosystem grows and as Prosper expands to other chain ecosystems, there are increasing options of wrapped BTC (e.g., LBTC) that might offer additional yielding opportunities for our community. Since the BTCfi landscape changes rapidly, this should be a community decision each month

A brief FAQ for some immediate concerns that may be top of mind for many current or future community members:

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What happens to my share of distributed rewards if I don't meet the voting requirement for claiming for a particular cycle?‍

Reward distributed will remain in the dApp (for your staking wallet). There's no expiry date on the distributed share of the reward. It will be available for claiming once your wallet meets the voting requirement (i.e., voted on a PIP)

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Will there always be enough PIPs "in time" for me to vote on if I started staking this month?

As mentioned above, along with this voting-gated claiming feature, regular PIPs would also be launched, which will mean that even newcomers to the Prosper protocol will get the chance to vote on a PIP without a long wait (if they pay any attention to the protocol's governance updates)

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Do I need to have voted on PIPs in order to stake PROS?

The action of staking PROS itself is not affected. You can stake PROS with or without a prior voting record on your wallet. The voting-gated feature applies to the claiming action of the staking reward only

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This will be the first step of many in Prosper’s continued growth to be more decentralized, more transparent, and more community-driven. Examples of future initiatives in this aspect include implementing a more structured process for initiating, discussing and voting on community governance proposals.

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Expected Results

• Implementation of voting-gated feature for claiming staking rewards, starting with a 3-month validity period (later on could be shortened if the community wants to be more rigorous on voting / activeness requirement of reward-sharing members)
• Over the long-term, the most active community participation and highest voting rate for a decentralized protocol (an important part of Web3's vision)

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Decision Required from the Community

Your decision on the above proposal is requested.

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Call to Action

All community members are strongly encouraged to discuss and eventually participate in a vote regarding this important development for Prosper. Your input and vote is greatly appreciated and requested.

As always, we encourage all community members to discuss with each other and to DYOR ahead of casting your vote.

Be sure to follow the latest updates from https://www.prosper-fi.com/ and https://x.com/prosperfi_BTC. Community members are also encouraged to join the conversation on Telegram at https://t.me/prosperfi or in the holders-only TG group here.