Proof-of-Gem (PoG) airdrop
Protocol stakers receive a share of profits from Concave products and services. Rewards to stakers are paid out at different intervals. Locked emissions in the native CNV token are paid out at 24-hour intervals and redeemable rewards in non-native tokens (DAI, Frax, etc.) are airdropped quarterly. Rewards in the native CNV token are primarily generated through bonding activity whereas the quarterly PoG airdrop is generated through excess profits derived from other Concave products and services. Bonding activity grows the Concave treasury and supply of the native CNV token. The Concave treasury is utilized to develop products and investment vehicles that generate yield back to CNV stakers.
Each quarter (commencing July 2022) the PoG airdrop will be allocated to Concave protocol stakers. Any user in a staking position during the PoG airdrop will be able to immediately redeem their airdrop allocation from the Concave protocol. A user’s PoG airdrop allocation is based on two factors: the total accumulated CNV in the staking position and the boost associated with the term length of the staking position. Users in longer term staking positions will receive a boost in their PoG airdrop returns when compared to those in shorter term positions.
The total PoG airdrop is generated through excess earnings derived from Concave products and services. This includes fees generated through swaps on Concave’s native AMM, purchases on the NFT Marketplace and yield on treasury investment strategies. The total allocation per staked CNV can be compared to earnings per share (EPS) in traditional finance. The key difference is that the PoG airdrop is only allocated to stakers.
Over time a higher allocation of treasury earnings will be distributed to stakers in the PoG airdrop. This is controlled by the Earning Distribution Ratio which grows over time and ranges between 20%-80%. The first PoG airdrop has distributed 70% of revenue to stakers.* This figure will climb to a cap of 80% to ensure that stakers receive the majority of returns while the Concave treasury grows.
*Special airdrop =/= standard quarterly airdrop, a special airdrop was given to the community in Q3 2022.