On-Chain Governance and Development Updates
Community Newsletter #19: March & April 2023
March and April brought a tremendous amount of excitement to the Increment community as it marked the launch of zkSync Era public mainnet as well as Increment governance. In this edition, we will highlight some of these exciting releases and describe the upcoming development plans for the Increment protocol.
zkSync Era Mainnet
On March 24th, 2023 zkSync Era officially opened its mainnet to the public and marked a major milestone for developers, projects, and users across the globe to experience the power of one of the most highly anticipated zkEVM launches to date.
Increment is looking forward to launching on zkSync Era in the upcoming months as other leading DeFi protocols like Uniswap, Curve, Aave, etc also onboard onto the network. As much as we would like to launch as early as possible, the Increment protocol features on-chain autonomous perpetual contracts that are built on Curve v2 pools and require a reliable oracle (such as Chainlink) for the index price to calculate funding rates, so it is necessary to wait for these essential protocols to launch first. The exact ETA is hard to pin down because the launch times for Curve v2 and Chainlink are not within our control.
Nevertheless, we are incredibly excited for the potential of the zkSync Era ecosystem as well as some of its features i.e. account abstraction. The next step is to relaunch Increment onto zkSync Era testnet.
Following the zkSync Era public mainnet launch, Increment launched its governance token $INCR and OpenZeppelin Governor on April 5th, 2023.
The token is now used by the community to vote, govern, and curate essential infrastructure components of the Increment ecosystem, for a more detailed breakdown of the token supply and distribution please see this proposal that was reviewed and voted on by the community: https://discourse.increment.finance/t/token-creation-distribution-phase-i/134/117
Increment implements OpenZeppelin Governor - a governance model of delegated voting. This model is similar to Alpha/Bravo the governance smart contract that was first built by Compound in 2020. This governance contract along with a few other distinct modules establish a decentralized, on-chain framework allowing the community to modify system parameters, support new markets, or add entirely new functionality to the protocol. In other words, under this framework no single entity or administrator should have the privilege to make changes to the protocol without an on-chain vote and execution. For more details on governance parameters and contract addresses, see: https://docs.increment.finance/protocol/governance
The initial community distribution is 2% of total token supply, with two more rounds of community distributions to go. For community members who are eligible for this initial distribution, you can now claim your INCR tokens through:
Three important points to note, as many have asked these questions in the community:
1. The token is non transferable to begin with, meaning that the token contract is paused. It is possible to unpause the contract through a governance vote in the future.
2. The token is on Ethereum mainnet, not zkSync Era. It is possible to bridge the token and redeploy governance on zkSync Era in the future, but since it is a new chain and with security at top of mind, Ethereum mainnet was chosen at this time.
3. There is no deadline to claim at this time. Claiming can only be stopped if the tokens allocated for this distribution are sent back to the community treasury through a on-chain governance vote.
Throughout March and April and into May, aside from launching Increment governance, our engineers have been busy with other developments as well:
One of the focuses was on redeploying all Increment contracts back on zkSync Era testnet and we were successful in doing so. The next step is to update our other off-chain infrastructure including the subgraph, arbitrage and liquidation bots, which is currently in the works.
In parallel, we have also started designing some additional token mechanisms that revolve around INCR. A safety module, similar to Aave’s, is planned to be at the core of how staking will operate on Increment. If you have any ideas or would like to contribute, let’s chat in Discord!
We are also working on an API with an outsourced development team. This API will provide unrealized PnL, volume, etc data for a future leaderboard, and it will be built on top of the subgraph.
In May, we hope to release Increment’s technical documentation. Having more eyes to scrutinize it will allow us to further improve the documentation, making it easier to understand for future readers. Also, threadooooorrrs - keep an eye out for any thread making competitions coming your way!
Increment is a decentralized, algorithmic perpetual swaps protocol building on zkSync 2.0, featuring automatically concentrated liquidity, dynamic fees and parametrizable pools.
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