On-Chain Citizen Growth Proposal #XIOfeedback

IDEA: On-chain Citizenship Referral System

PROBLEM: There is currently no financial incentive for Citizens to invite new Citizens

PITCH: If you refer someone, you earn 1% of anything they withdraw from the claims dapp (Dropzero)


  1. User goes to bz.to and connect any wallet they want
  2. User decides what ZID (Blockzero ID) they want
  3. Let’s assume they named it BOB
  4. User clicks “Submit” and is minted an official Citizenship NFT
  5. User sees a dashboard of information and is given a unique link (bz.to/BOB)
  6. User can manage the wallets associated with the Citizenship, view XSI/XLP/etc
  7. User can share this link with anyone. Let’s assume you share it with TOM.
  8. If TOM becomes a Citizen, their NFT meta data assigns BOMB as the referrer
  9. Each time TOM goes to claim tokens out of Dropzero, 1% reward goes to BOB


  1. If a Citizen does not have a referral NFT, then a 2% reward goes the the Blockzero (Index) each time that Citizens claims rewards
  2. This model gives a reason people would want to use referral links and share them around (Get a 1% bonus on your token claims!)
  3. From a psychological level, the person claiming these tokens doesn’t have to see the “fee”. We can simply show them the claimable amount

Looking for feedback!


Again, I’m pretty excited about the proposal! But as I mentioned in the chat, I think total transparency is super important. I have no issue referring to the “fee” by another term, but I cant stress enough how imperative I think it is for all users to understand the token flow, not just the projects involved. This is something that people will put together eventually, so its far better that we’re clear about it with new citizens instead of just having it tucked under the rug.

Cheers guys


Full transparency - the Youtube live steam was the first time I heard about this - haven’t had the chance to read this on Slack yet!

I think this is a great idea and really does incentivize citizens to refer others and go the extra mile. It’s actually really beneficial for citizens to sign up new users and explain everything Blockzero to them! I’m imagining having a new wave of citizens who have been given some in-depth background by existing citizens. I was speaking with a friend yesterday about Blockzero and mentioned that the discussion we were having could have actually got them some rewards if it happened on the social forum. Having a scheme like this would for sure encourage me to sign them up as a referral and remind them to give feedback on specific posts!

Yeah, I agree that we need to be very transparent about this but at the same time, it does not have to be plastered everywhere that there is a fee. I think it’s enough to mention when the claim happens, the same way Uniswap does with the fees.

I do wonder how much minting an NFT like this would cost to the user? This could be a potential barrier to entry - the new user would have to essentially pay to become a citizen and I wonder if that’s something a new user would be willing to do.

I think the percentages mentioned are pretty fair and I like that users who are not referred result in the index fund growing.

I’m pretty excited about this and look forward to hearing from the community about this!


Despite being a person that doesn’t have acquaintances interested in the crypto space and hence won’t never benefit from this referral system, I think the idea to earn 1% of anything referred people withdraw is a great idea. I think this is going to attract a lot of people to the space.

I would put a hard limit (5, 10 or any other reasonable number) of referrals. I think otherwise we could have problems of:
a) People spamming channels and forums: bad rep for BlockZero in the end. We don’t want that.
b) People trying to game the system: I don’t know exactly how but there is always way to try to take advantage of referral systems, I have seen it in the past.
c) People with a lot of followers getting immense benefits from this program and, hence, creating great inequality between XIO citizens. I am talking about people that own big twitter accounts or big telegram groups and spam their followers to register to stuff with their referral.

Another option instead of the hard limit is having diminishing returns: 1% for first 5 referrals, 0.2% for 6-10, 0.1% for 11.20, etc. This is just an example.

I don’t understand quite yet the 2% fee for the people that does not refer anyone. What is the purpose of it? Isn’t it enough to offer the 1% referral, no need to punish them, I would say.


Overall I think this is a great idea.

  1. More citizens obviously
  2. I love the connection with the index fund. Anyone who is not referred by anyone (so all of us current citizens) will get 2% less rewards but this will go into the index fund of blockzero. This will give blockzero a floor price.
  3. Independence of wallet - I like that the citizenship can be assigned to different wallets.


  1. Scam-y appearance - Obviously we all here know that the team and Dash are awesome. I also know how worried they are about looking scam-y. I admit I don’t know any decentralized big/serious project that has a referral system (yfi,uni,bal,1inch none of those have a referral system). I know a few tokens that have referral system, but in my mind that automatically puts them into a riskier category.
  2. NFT minting gas fees - others have already mentioned this. But if the gas fee to make an NFT is very high, people might not even create one.
  3. NFT learning curve - not everyone in crypto knows how to make NFT work. So this is another barrier to entry.

I really like the idea in general, especially the Dashboard tied to ones NFT.

The copy-paste effect for external parties is awesome.

The referer/referee/Index fund structure feels fair.

Bonus feedback:
If we could add a one transaction claim for lower fees, being able to select which coins we want to claim, that would be fantastic.

Love the idea of it being on-chain, creating custom ZIDs, getting citizenship NFTs :love_you_gesture:, and a referral system that rewards both sides. It also sounds like a sustainable system, which far too many projects do not have a sustainable model in the hopes of just growing fast. Hopefully, this will be available on L2 so tx fees don’t hinder people from participating. The fact there will be a gas fee regardless if it is on L2 and the steps to make a ZID should also help with people gaming the system :crossed_fingers:. I can’t wait to see this one come to life and I hope I can contribute in some way.

I’m in favor of this proposal. I have only request : it should be retroactive as well. For example, I have 2 friends that are citizens now, thanks to me, and they should be able to say that I referred them :joy:

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I imagine that will be the case as well all need to create NFTs when the dashboard etc launches so people can sort out amongst themselves whether they highlight a person who referred them even if they are here.

Oh that would be cool.

Oh that would be cool. I wonder if it’s possible.

I think this is a great idea. I especially like the idea embedded within it that a percentage of claimed tokens go to the index fund if there is no referral attached. This adds value to the blockzero ecosystem either directly, through increasing index fund value, or indirectly, by incentivizing citizen growth.

I don’t think a referral system is inherently scammy, its about how its down. Blockzero is a token studio and one of its purposes is creating a network effect of citizens and projects. A referral system makes sense in this regard to monetize some of that network effect.

Lastly, because you are giving a percentage of claimable tokens, citizens are incentivized to refer to high quality citizens. Volume does not help here, only quality, which further reinforces the blockzero brand.

I’m not too keen on individual rewards for referral links, as that tends to the spamming side.

How about, that perpetual 1% goes into the XSI pool (or whatever the community pool is), so everyone benefits, and the person who referred gets an XSI bonus for the month that the new citizen joined. In this way, every citizen would encourage each other to use referral links (instead of competing), and for those links that actually follow through with a new citizen, the citizen who’s link gets used is rewarded in the short term (XSI bonus), but in the long term the entire community benefits. Additionally, the new citizen is incentivized to use the referral link as then the XSI pool grows which they can get rewarded from more if they contributed productive content.

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That’s a super interesting and creative idea. But I think the 1% going to the index fund is just as much, if not more of a reward to the community. I don’t think sending it to the XSI fund would be more of a reward. Sending it to the index also adds direct value to something that doesn’t have much value yet. The XSI fund though is fine and generally doesn’t need any help, at least right now. The index fund is much more of a need.

I love the idea how you have put this forward…especially intrigued by the inclusion of the index fund here.

Here are my thoughts:

  1. This makes perfect sense from both the referer and the referee perspective.
  2. The way I am reading this is …this means , whenever we claim on the dapp, you will get 98% of the claim by default (+1% extra in case you have a referral link) and 1% goes to the referee…dont think the 2% haircut should be a problem for anyone if it benefits the overall system.
  3. I agree, we should only show the claimable tokens and maybe mention that you can retain 1% more if you just had a referral.
  4. Especially love the fact that we are not inflating the overall rewards here, this makes it much more healthy and sustainable in the long run.
  5. The part where we only give rewards on “claims” makes it super interesting, this ensures we reward only for engaged and active users.

Looking forward to my citizenship NFT!

Never underestimate the greed of people (even though the average citizen here is way more educated and smart than the average crypto investor). There could be people complaining about a 2% “tax”

I can’t say anything regarding the complexity of an NFT, if that has any impact on the price, but minting an NFT from Gala Games would currently cost me 0.00818 eth with 100gwei.
The price there seems the same regardless if it is a token being minted or an NFT.

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I totally agree with the proposed solution for referring new people. I’m just wondering what to do with people that already referred bunch of new citizens, will they be able to say that they referred someone and claim the reward for way back. It could be solved with some kind of confirmation from both sides when referring so that both have to agree for referral to go trough.

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Although these referall based systems work well for onboarding new people, I’m not a fan of them. First of all is that referalls make me think about scammy MLM and “cryptocurrencies” like Pi Network, and the second thing is this will encourage people to spam their referalls everywhere, on reddit, 4chan, twitter, facebook, creating a bad image for the project (I saw this happen with all crypto projects that used referalls, it was a shitshow). This can easily be used as FUD against the project imo. The 2% fee will also see negative feedback imo, cuz: 1. If the fee can’t be seen then this can be interpreted as a disguised tax and create fud. 2. If the fee is visible then people won’t be happy that they have to pay it.

The NFT and dashboard thing is cool though, the only problems are with the referalls and taxes. I think that the removal of the SMS Insider and capping the XSI rewards to $1k was enough tbh, we should think of other ways to fund the index without cutting more of people’s rewards.

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I love the idea of incorporating an NFT for this use. The barrier I am finding is how all these acronyms and tech present a real barrier for onboarding. Like it has been said by others we all know how cool this all is and the additional benefits of being part of a genuinely collaborative community are, how then, for someone new to crypto do we encourage them to tackle this barrier?

Love the idea - i think i need to see some flow chats of how it works and the links that will be generated from the NFTs.

What happens if people have already been referred and are contributing? Can you create the link retrospectively?