Evmos: Evmos x Covalent Hackathon Participant Rewards Re-Adjustment

Author(s)

LPX, Evmos DAO
Leibing, Covalent

Summary

Due to the decrease in the price of EVMOS, there is a deficit in the amount of tokens that were originally asked from the pool from Proposal 54 and the amount that is needed to pay out all the rewards from the hackathon. It is our belief that it is paramount for the hackathon winners to be rewarded for contributions and efforts in a timely manner to encourage the continued interest and growth of the developer community in the Evmos ecosystem.

Abstract

The Covalent x Encode x Evmos Community hackathon concluded last month with participants joining from around the world.
At the time of the passing of Proposal 54, EVMOS was around $2.50. Currently, the price of EVMOS is ~$0.475.
This proposal is requesting funds from the Community Pool to balance the rewards payable to current market price as promised in Proposal 54. The total amount requested can be found in the Amount Requested section below.

Motivation

The #OneMillionWallets hackathon was a successful event that brought together members of the Ethereum as well as Evmos Community to work on exciting projects. However, the price of the EVMOS token has dropped significantly since the hackathon was funded by Proposal #54, resulting in a deficit that needs to be filled in order to pay out the participants.

This proposal aims to ensure that the hard work and effort put in by the participants is rewarded, and that the Evmos Community continues to be a supportive and collaborative space for innovation. Additionally, this proposal will demonstrate Evmos commitment to its Community and show that it keeps its promises.

The original proposal clearly stated the following: 'The amount of tokens for the hackathon prizes of $100k will be determined at time of dispersement. In the case of extreme price volatility, the Governance workstream will assist in readjusting the community pool funding request.'

Message from Covalent

Thank you for your patience in staying with us and navigating this situation together. The Evmos-Covalent #OneMillionWallets hackathon concluded in December 2022 to great success, where we saw more than 500+ teams registering, more than 60+ projects built, and more than 100 daily quiz participants. It was our biggest and most successful #OMW hackathon to date.

Due to the depreciation of the prize pool, however, we cannot give the winners what we feel they truly deserve. We know how important runway is for teams building in an ecosystem; such runway can only be achieved when the teams are rewarded at the amount after the price movements have been adjusted. We deeply appreciate the EvmosDAO Governance workstream's efforts in readjusting the community pool fund to ensure that projects get the deserved level of funding.

Leibing, DevRel, Covalent

Amount Requested

The amount requested pegs the EVMOS price to $0.40 due to market uncertainty. All leftover EVMOS will be returned to the community pool.

The total amount of rewards payable came out to be $60,950 instead of the planned $100K. 50% of the funds in the original multisig that were originally allocated for the hackathon rewards, or 50,200 EVMOS (~$20,080) will be used to help fill this deficit.

$40,870 ($60,950 - $20,080) for the deficit in the amount of the hackathon winners' rewards (~102,175 EVMOS tokens @ 0.40). Detailed sheet.
$17,799 for the organizers of the hackathon (~44,497.5 EVMOS tokens @ 0.40)
20,000 EVMOS tokens for a donor that tried to assist in filling the deficit (TX)
Grand Total: $58,669 + 20,000 EVMOS (roughly 166.6K EVMOS)

Note: This funding request is specifically for the outstanding amount required to pay out the participants and organizers of the hackathon. The 50% that was initially allocated to Covalent for their services will be released to Covalent - there are no plans to re-adjust the indexing and API integration fees at the moment. The decision to delay the staking of the other 50% by Covalent was not the responsibility of the Evmos Community.