[FIP-2, Fragmetric Improvement Proposal] FRAG² Staking Incentive Continuation Program

1. Abstract

Fragmetric launched FRAG² staking in July 2025 alongside the token generation event and initial airdrop, successfully bootstrapping governance participation with early incentives that have now been fully distributed. Over the past four months, the program has achieved over 25,000,000 FRAG staked (more than 10% of the circulating supply) with approximately 6,000 active FRAG² holders.

This proposal recommends allocating 4,264,509.124117573 unclaimed FRAG tokens from the initial airdrop at July 2025 to continue incentivizing FRAG² holders over the next 12 months. Distribution will occur linearly through the automated FRAG-22 program on Solana mainnet, with value accruing directly to FRAG² token holders. The primary goal is to maintain governance participation and ensure sustainable growth of the Fragmetric ecosystem.

2. Motivation

Key objectives of this proposal include:

  • Maintaining consistent incentives for FRAG² holders after initial program completion

  • Ensuring continuous FVT (Fragmetric Vote Token) circulation for active governance

  • Rewarding early ecosystem supporters who demonstrated faith in Fragmetric

  • Sustaining the >10% staking ratio achieved during the bootstrap phase

  • Transparently utilizing unclaimed airdrop tokens for community benefit

3. Specification

This proposal authorizes the transfer of 4,264,509.124117573 FRAG tokens from the treasury to the FRAG-22 program’s reward vault for automated distribution over 12 months.

The distribution mechanism will operate as follows:

  • Linear distribution schedule over 12 months

  • Automatic execution through the FRAG-22 program without manual intervention

  • Direct value accrual to FRAG² holders proportional to their holdings

  • Immediate commencement upon governance approval

Target metrics to maintain:

  • Approximately 6,000 FRAG² holders

  • Minimum 10% staking ratio of total FRAG supply

  • Active FVT utilization in governance decisions

Future considerations will include burn mechanism implementation and circulation target adjustments, which will be addressed in subsequent governance proposals.

4. Benefits/Risks

Benefits:

  • Sustained governance participation through continuous incentives

  • Transparent use of unclaimed airdrop tokens

  • Maintained ecosystem momentum from initial bootstrap success

  • Strengthened long-term holder alignment

Risks:

  • Potential dilution if staking participation decreases below target levels

  • Market volatility affecting incentive effectiveness

  • Dependency on continued holder engagement for governance success

5. Conclusion

By allocating unclaimed airdrop tokens to FRAG² holders, this proposal ensures continuity of governance incentives following the successful initial bootstrap phase. The program leverages existing infrastructure (FRAG-22) for efficient distribution while maintaining the ecosystem momentum achieved since the July 2025. This measured approach balances sustainability with growth, positioning Fragmetric governance for long term success.

6. Voting

Vote on Realms using FVT (Fragmetric Vote Token):

This feels like the right direction for keeping Fragmetric’s governance engine running smoothly. Extending incentives with the unused airdrop supply makes sense, especially after proving FRAG² staking can hold a meaningful >10% ratio and bring thousands of holders into the loop.

Still, the next phase deserves sharper guardrails. A 12-month linear drip works, but pairing it with clearer checkpoints on participation, treasury impact, and long-term token flow would give the community more confidence. If the goal is sustainable governance, then future proposals should map out how burn mechanics, FVT utilization, and staking ratios evolve together not just run incentives on autopilot.

Using unclaimed tokens for actual ecosystem value is a solid move. What matters now is ensuring this incentive round doesn’t become a comfort zone, but a bridge toward more durable economic design.

The momentum is real. Now we shape it into something that holds up through the next cycle of growth and volatility.

Still I believe we need more. Simply dripping tokens to stakers keeps the lights on, but it doesn’t necessarily elevate the ecosystem. Incentives without activity can turn into passive farming, which quietly erodes engagement over time.

Adding an activity layer, quests, governance actions, ecosystem contributions would make the incentives more earned and more valuable to the protocol. It shifts the dynamic from “holding” to actually participating in Fragmetric’s growth.

One thought worth exploring is shifting the program from purely passive distribution to something activity-driven. Staking incentives are a great baseline, but pairing them with governance actions or ecosystem tasks could strengthen participation instead of just sustaining it. If the goal is long-term alignment, rewarding contributors who actually help move Fragmetric forward might deliver more value than simply dripping tokens to idle stakers.

These are just examples, but the point is: reward behavior that strengthens Fragmetric, not just wallets that sit still.

2 Likes

Thank you for this thoughtful feedback. These insights are exactly what help shape Fragmetric’s governance evolution.

You’re absolutely right that passive distribution alone isn’t sustainable. The team is actively structuring FRAG, FVT, and governance mechanics in phases to address these concerns. We’ll introduce activity driven participation layers step by step, building toward a system that rewards meaningful contributions over passive holding.

This current proposal serves as a baseline to ensure stable participation while we architect more sophisticated mechanisms. As more FRAG gets staked and FVT circulates on chain, active governance participants will capture greater value and influence through their contributions.

Your point about avoiding the “comfort zone” resonates strongly. This isn’t the end state but rather the foundation that keeps governance running while we build activity layers, quest systems, and contribution metrics. We share your vision: rewards should flow to those strengthening Fragmetric, not just sitting still.

Future proposals will include granular checkpoints, clear participation metrics, and mechanisms tying incentives directly to ecosystem value creation. Thank you for pushing us toward better economic design. This is how we build something that holds through cycles.