CIP #21 - CBI as an incentive to engage community members

Status: Proposed

Discussion link: CBI as an incentive to engage community members

Created: 02/21/2022

Executive Summary

When community members interact with the platform’s digital channels to contribute ideas, cast votes or provide feedback, they indirectly create value in different ways that help the ecosystem grow and develop.

Therefore, it is essential to allocate tokens to reward active users and major index selectors. In addition, it could also encourage the usage of certain features on the Cook Finance platform.

This can come in handy when new products are being launched.

This proposal is about potentially allowing Cook’s Community Incentive & Airdrop program to make use of Cook Believer Index tokens (CBI) as staking, liquidity mining rewards and other incentives to better engage community members.

Problem Statement

Community engagement is crucial to the success of any project, very much so, in the very dynamic blockchain space. In addition to rewarding users and community members, this proposal will also potentially generate significant revenue for the government. Particularly for the decentralized nature of the Cook platform, community is essential to provide a crucial feedback loop for the continuous improvement and overall sustainability of the project.

Industry research shows that there are over 10,000 cryptocurrencies projects in the global metaverse, with an average of 200 new projects launched every month. Consequently, there is a stiff competition for every project to attract and sustain the interest of the members of its community. To achieve optimum engagement, there has to be a healthy level of information flow, and an efficient incentive structure built into the fabric of the project. Here are a few reasons why it is necessary to incentivize the Cook Finance Community:

  • Building trust and a sense of inclusivity among users.
  • Providing an effective channel for communicating information and sharing lucrative opportunities.
  • Building a platform to share ideas, and collaborate towards achieving the collective goals of the Cook Finance protocol while maintaining decentralization principles.
  • Facilitating communal support and engagement
  • Establishing feedback loop to continuously re-evaluate and improve user experience

Establishing a feedback loop involving active users of products and community members is crucial to creating the appropriate product market fit, improving user experience and growing the ecosystem.

Today, DeFi community lacks a tool that allow better management of multiple rewards and incentives, especially for tools that:

  • Are always fully collateralized, 1-to-1
  • Are always fully redeemable, and on-demand
  • Are non-custodial
  • Are non-dilutive
  • Behave similarly to a digital warehouse receipt

Proposed Solution

In terms of utility, Cook Indexes (ckTokens) have successfully demonstrated their effectiveness as token portfolio management tools. The COOK community engagement can increase exponentially if the utility of Cook Indexes are expanded to include being deployed as incentives to encourage certain activities and the usage of certain features on the platform.

Furthermore, establishing an effective incentive program that is incentivized by native CBIs will be a perfect way to achieve and sustain healthy levels of community engagement.

Overview

A proposal is hereby moved to consider creating the Cook’s Community Incentive & Airdrop program. This could effectively allow Cook Believer Index tokens (CBI) to be deployed as reward incentives for staking and liquidity mining programs.

Rationale

Cook Indexes (ckTokens) holders have demonstrated themselves to be both loyal users of Indexes as portfolio management tools and engaged community members.

Rewarding Cook Index users and community members with the very product that Cook is founded on will further reinforce product engagement and product design feedback loop and governance design.

Specification

  • To allow Cook Believer Index (CBI) to be used as Liquidity Mining and Staking rewards and other incentives to better engage users from Cook’s Community Incentive & Airdrop program
6 Likes

Using CBI for staking, liquidity mining rewards and incentives would be really nice. Anticipating it.

6 Likes

we can clearly see that we need more community engagement, hope this CIP will be accepted

4 Likes

Am expecting launch on this, CBI is a good idea. Really smart too. Let’s do this

Cook Believer Index as liquidity mining, staking rewards, and future incentives? Why not. No one will refuse a reward.

This is a very good concept and rewarding users and the community with this, will bring about more patronage and use of the CBI.

Community engagement is non negotiable for every project, and I can see that CBI is a good concept that will bost that so I support it.

CBI is indeed an exceptional idea from the $COOK team to incentivize and reward community members for their engagement, so is support it.

I am a simple person, I see free money, I agree :smiley:
I am waiting for CBI to be used as incentives on Cook Finance platform.

As we already know, community engagement plays a vital role in the success of every project, and like the saying “no strong community no project”.
I support this proposal cause it will build more engagement of the community and trust relationship.

This proposal will bring more engagement to the platform. It can attracts more user’s and the community will be more active always.