Note 
This proposal replaces #29 Frequency Community Rewards Program- Tier 1 All remaining tokens granted from that proposal have been returned to the Frequency on-chain treasury.
Summary 
<ul>
<li>Proponent: Hash Directors, on behalf of the Frequency Network Foundation (the &ldquo;Foundation&rdquo;) f6ZRSAxVFaSY71fXStdaNGvAFwHVEN5S5kFAmfoJxzm7DGF3h</li>
<li>Date:February 21, 2025</li>
<li>Requested Frequency tokens: 10.69 million</li>
</ul>
Purpose/Objective 
The objective of the Frequency Community Rewards Program (the &ldquo;Program&rdquo;) is to award and incentivize application providers (&ldquo;Providers&rdquo;) to (i) migrate to, or utilize, the Frequency chain (&ldquo;Frequency&rdquo;) for their social networking platforms and (ii) to encourage users of their platform to create accounts on other Provider platforms on Frequency. The overall Program may have several tiers, each with their own criteria, targets and rewards to be distributed.
Overview 
<ul>
<li>Providers are subject to baseline eligibility criteria described below to participate in the Program.</li>
</ul>
Key Eligibility requirements for Providers: 
<ul>
<li>Provider must agree to certain terms and conditions associated with their participation in the Program and made available by the Foundation (&ldquo;Provider Program Terms and Conditions&rdquo;).</li>
<li>The application or service that Provider offers to the public (the &ldquo;Provider Service&rdquo;) must be integrated into Frequency. Provider must maintain a Frequency compliant message source account (&ldquo;MSA&rdquo;) in continuous good standing and be approved to operate on Frequency mainnet.</li>
</ul>
Proposals 
<ol>
<li>A Provider will be eligible to receive reward tokens for each completed Qualified Activity by users of such Provider&rsquo;s Provider Service (each a &ldquo;User&rdquo;) until the Program Deadline specified below (&ldquo;Provider Rewards&rdquo;). A &ldquo;Qualified Activity&rdquo; is the successful: (i) creation of an MSA on Frequency by a User (&ldquo;Sign-Up&rdquo;) or (ii) the delegation of permissions by a User to create an account on a second application or service available on Frequency that is not the Provider Service (&ldquo;Interop&rdquo;). A User must complete a Sign-Up activity before engaging in an Interop activity. Providers are only eligible to earn Provider Rewards for a User&rsquo;s Interop activity if that User completed a Sign-Up activity referred by that Provider.</li>
<li>Provider Rewards for Sign-Up activity are earned by a Provider when the first delegation of permissions from a User to a Provider is created, as recorded on-chain. The Provider that is the target of that delegation is the one credited with the Provider Reward for that activity.</li>
<li>Provider Rewards for Interop activity are earned by a Provider when a User that has completed a Sign-Up activity delegates permissions to a second application or service available on Frequency. The Provider that is the target of the User&rsquo;s first delegation is the one credited with the Provider Reward reward for that User&rsquo;s Interop activity. The Provider that is the target of the User&rsquo;s second (or subsequent) delegation does not receive a Provider Reward.</li>
<li>The initial rewards levels for Provider Rewards are specified in the tables below (the &ldquo;Rewards Schedules&rdquo;). The Rewards Schedules in effect on the date that Provider accepts the Provider Program Terms and Condition will be used to calculate such Provider&rsquo;s rewards for the duration of such Provider&rsquo;s participation in the Program. The Rewards Schedules will be administered on a per Provider basis. The calculation of reward tokens earned by a Provider will be based solely on such Provider&rsquo;s activities and not cumulative activity on Frequency.</li>
<li>The amount of potential Provider Rewards for new Provider participants decline over time. This is designed to incentivize Providers to sign up and lock in their rewards level. A potential Program participant can calculate the current rewards level by applying their contemplated sign up date to the Rewards Modifier formula (see (a) below) and multiplying it by the initial rewards level. A Provider can also see their specific rewards level after signup (based on the result of the above calculations) by logging into the rewards site here: <a style="background-color: #0d0d0d;" href="https://rewards.frequency.xyz/providers/current-tiers">https://rewards.frequency.xyz/providers/current-tiers</a>
<ol style="list-style-type: lower-alpha;">
<li>The Rewards Modifier can be calculated by applying the following formula to the applicable week number. Week number zero corresponds to the week of Jan 1, 2025, and weeks are counted subsequently thereafter. For week 100 and all subsequent weeks, the Rewards Modifier discount will persist at 40%. Rewards Modifier = 1 - [1.6(signUpWeek/100)^3 - 2.4(signUpWeek/100)^2 + 1.2(signUpWeek/100)]</li>
</ol>
</li>
<li>The initial Rewards Schedules are set forth below.<img src="https://i.ibb.co/pjy4M02G/Screenshot-2025-02-21-195652.png" alt="" width="497" height="174" /></li>
<li>The Program will calculate rewards in 30-day increments and distribute earned reward tokens to participating Providers 7 days after such calculation, or such other period as necessary to ensure the integrity of the Program.</li>
<li>All reward tokens distributed to a Provider will be subject to one-year lockup periods from the date of distribution to such Provider the &ldquo;Lockup Period&rdquo;). A new Lockup Period will apply to each distribution of reward tokens to a Provider and a Provider may have multiple Lockup Periods The lockup will be enforced by technological means. Providers will not be permitted to sell or transfer any reward tokens still subject to the lockup during the Lockup Period until the applicable reward token is unlocked, except that no lockup provisions shall prohibit Providers from transferring reward tokens to an affiliate of the applicable Provider, or from staking, voting, or otherwise participating in the Frequency network with respect to locked rewards.</li>
<li>Reward tokens for Providers, and the chain transaction fees for those transfers, will be provided from the Frequency on-chain treasury (&ldquo;On-Chain Treasury&rdquo;) from the tokens requested by this proposal. Any tokens remaining from this proposal after 6 months will be returned to the On-Chain Treasury. If the Program ends before 6 months, any remaining tokens will be returned to the On-Chain Treasury.</li>
<li>No tokens requested in this proposal will be retained by the Foundation as compensation for implementing the Program. All tokens are to be used for Provider rewards, or chain transaction fees needed to distribute the rewards.</li>
<li>This treasury proposal is only for sufficient tokens to launch the Program. Additional treasury proposals may be submitted for this Program including for additional reward categories.</li>
<li>Approval of this proposal is agreement to the scope outlined above in addition to the token transfer approval outlined below.</li>
</ol>
Timeline* 
<ul>
<li>Treasury Proposal Approved: February 22, 2025</li>
<li>Program Deadline: Earlier of August 22, 2025 or exhaustion of tokens for rewards Remaining funds returned to On-Chain Treasury: September 22, 2025</li>
</ul>
*Activities to be completed by the applicable target date stated above or as soon as practical thereafter.
Breakdown of Fund Usage/Cost Breakdown 
<ul>
<li>Reward Tokens: Up to 10.63 million tokens</li>
<li>Transactions Fees: Up to 3.26 million reward events * 0.016 tokens per transfer = 60,000 tokens</li>
<li>Total Tokens: 10,630,000 + 60,000 -&gt; 10,690,000 tokens</li>
<li>All remaining tokens at end of program to be returned to the On-Chain Treasury.</li>
</ul>

- **Problem Statement:** Implementing the Frequency Community Rewards Program to incentivize application providers to migrate to or use the Frequency chain and encourage user engagement.
- **Significance:** Encourages platform migration to Frequency, boosts user engagement, and rewards providers for specific activities.
- **Proposed Solution:** Establish a rewards program where providers earn tokens for user activities like creating accounts and delegating permissions on the Frequency chain.
- **Expected Outcomes:** Increased adoption of Frequency, enhanced user engagement, and fair distribution of tokens with lockup periods for providers.

#56 Frequency Community Rewards Program- Tier 1

No Active Proposals