ONEX Airdrop Proposal
ONEX has embarked on a 3-phase journey towards its production launch, beginning with the implementation of OIP-4 Replicated Security upgrade to forge the ONEX Consumer Chain. After Interchain Security / Replicated Security launched on the Onomy Network mainnet post a DAO consensus and backed by the entire validator set, the initial phase saw significant progress. Onomy became the second provider chain in all of Cosmos. Subsequently, ONEX’s logic underwent a rigorous alpha test phase through community engagement and the first Trading Competition, focusing primarily on the underlying logic rather than the user interface. This phase, involving feedback from over 4,000 testers, led to substantial enhancements including feature upgrades, bug fixes, and refinements in mechanics like the Buy & Burn mechanism for NOM.
The second phase came with a beta interface alongside the second Trading Competition, ONEX tested enhanced user interface encapsulating features like TradingView Charts, Orderbook, Order Forms, and sophisticated Liquidity Management Screens for liquidity providers, among others. This interface, still evolving, aims to offer a traditional exchange experience with added responsiveness. The culmination of these iterative feedback cycles is paving the way for a production version, previewed in the Onomy community forum, in the final 3rd phase wherein ONEX will launch in mainnet with a production-grade user interface. Pendulum is extremely proud to have contributed to this progression alongside other contributors, community, validators and collective DAO support.
The Challenge with using $NOM for ONEX Governance:
While ONEX’s establishment as a consumer chain marks a milestone, the use of $NOM for governance and staking processes presents notable inefficiencies. The current system requires a 21-day undelegation of NOM, followed by an IBC transfer to ONEX, and subsequent staking of IBC NOM to be able to participate in ONEX governance, which notably does not yield rewards. This cumbersome process necessitates a reversal post-voting, adding to its complexity.
Proposing a Streamlined Solution: The ONEX Coin:
The introduction of $ONEX aims to simplify this governance model. This newly minted digital asset on the ONEX consumer chain will replace the convoluted unbond → bridge via IBC → bond → vote → unbond → bridge back → restake on Onomy process. $ONEX coin will facilitate ease of use, and be airdropped for free 1:1 to current $NOM stakers. $ONEX will therefore be used for governance by those most-aligned with Onomy, earn ONEX staking rewards, and additional utilities as decided by the DAO, enhancing overall user experience.
The imminent Onomy Exchange mainnet launch sets the stage for the $ONEX airdrop, intended to reward community members and encourage ecosystem engagement.
- Reward Loyalty: Acknowledging early adopters and consistent contributors.
- Attract New Users: Offering incentives for joining the Onomy ecosystem.
- Encourage Participation: Promoting active user engagement.
- Ensure Fair Distribution: Equitably rewarding governance participants and network security contributors.
Eligibility and Distribution:
Eligibility hinges on holding a minimum of 100 staked NOM as recorded in a snapshot on December 25, 2023 at 18:00 UTC. This excludes “unbonding” NOM to ensure fairness, although a date of the snapshot was chosen to allow ample time for anyone currently unbonding their NOM to re-stake. Eligible users will receive $ONEX equivalent to their staked $NOM at genesis of the ONEX mainnet, automatically credited to their wallets, following a structured vesting period of 12 months. The first unlock of 1/12 your airdrop will occur upon genesis of ONEX mainnet, followed by monthly unlocks of 1/12 thereafter until all tokens are unlocked.
Token Distribution and Liquidity:
The total $ONEX supply will mirror the bonded NOM at the snapshot, currently standing at ~65 Million. This may be seen in the on-chain metrics section of Mintscan powered by Cosmostation. Additionally, a community-transparent wallet funded with 5% of the total supply will be established for seeding liquidity in NOM/ONEX pairs on the Onomy exchange, liquidity provisioning, and potential bonus airdrop reward via Zealy, Galxe, or related use cases. This proposal awaits DAO discussion, approval, and validator set implementation.
The ONEX Coin Utility:
The ONEX coin holds the following utility, as highlighted in its afferent Onomy Improvement Proposal forum post:
- Minting of $ONEX Coin: A new digital asset, $ONEX, will be minted on the ONEX consumer chain.
- Ease of Use: Eliminates the need for IBC transfers and multiple staking mechanisms.
- Airdropped to $NOM Stakers: Those staking $NOM will receive $ONEX via an airdrop.
- Unified Experience: Stake, earn rewards, and engage in governance without leaving the ONEX chain.
- Utility Functions: $ONEX will serve for governance, staking rewards, and additional utilities as voted by the DAO. This may include reduced fees, access to launchpad sales on ONEX, or a number of other items the DAO may choose to implement.
- Airdrop to $NOM Stakers: An airdrop will distribute $ONEX to all existing $NOM stakers.
- Governance Streamlining: $ONEX will be utilized for all governance functions on ONEX, eliminating the complexities involved in using IBC-NOM.