ZIP - Proposal - TVL Incentive Program via rZFI for ZyFAI Smart Wallets

General
1

Title: [ZIP] TVL Incentive Program via rZFI for ZyFAI Smart Wallets
Author: Gauthier / ZyFAI DAO
Date: 2025-07-10

Summary

This proposal seeks DAO approval to allocate 5% of the total ZFI token supply (25,000,000 ZFI) toward a performance-based incentive program that rewards users based on the total assets under management (AUM) held across ZyFAI Smart Wallets, powered by autonomous agents. The program will use a new reward mechanism called rZFI (Reward ZFI) — a claim-based, time-locked form of ZFI that will be deployed as part of this initiative. While Merkl streams will be launched on Base, eligibility will be based on users’ global AUM across all supported networks. Distribution and campaign design will be managed by a Reward Committee operated by Ondefy Ltd, with full flexibility retained by Ondefy Ltd.

Motivation

ZyFAI is pioneering autonomous DeFi through agent-powered smart wallets. To drive usage and capital inflows in its early phase, ZyFAI requires a robust incentive structure that encourages real engagement, long-term alignment, and protocol-wide growth. This proposal replaces short-term farming with a programmable, time-locked reward system that distributes future governance power in a sustainable, modular, and network-agnostic way.

Specifications

  • Introduce rZFI, a new reward mechanism (similar to rEULER) with the following logic:
    • rZFI is non-transferable and represents a time-locked claim on ZFI
    • Upon claim:
      • 20% of ZFI unlocks immediately
      • 80% unlocks linearly over 6 months
      • Early redemption forfeits and burns the locked portion
      • Each claim starts its own unlock schedule
  • Allocate 25,000,000 ZFI (5% of supply) to a Reward Committee multisig operated by Ondefy Ltd
  • Merkl streams will be launched on Base, but eligibility is based on global AUM held across all ZyFAI Smart Wallets
  • New networks added to ZyFAI will be automatically eligible
  • Reward comittee holds full discretion to adjust the reward mechanism (unlock logic, emission rate, eligibility filters, etc.)

Costs

  • Token allocation: 25,000,000 ZFI (5% of total supply), already unlocked
  • Smart contract deployment: rZFI will be developed and deployed by the ZyFAI team
  • Merkl campaign setup: no additional infrastructure cost
  • Ongoing operations: handled by Ondefy Ltd as Reward Committee lead
  • Gas fees: users cover their own claim transactions

Implementation Plan

  1. DAO approves the transfer of 25,000,000 ZFI to a Reward Committee (Ondefy Ltd)
  2. ZyFAI team deploys the rZFI reward mechanism with unlock logic and Merkl integration
  3. Phase 1: 2,500,000 ZFI distributed over 2 months (via Merkl on Base)
  4. Eligibility is calculated across all chains based on total AUM in ZyFAI Smart Wallets
  5. Phase 2: 22,500,000 ZFI streamed over the next 10 months based on program performance
  6. Monthly campaign updates, metrics, and adjustments handled by ZyFAI + Reward Committee
  7. No additional DAO vote required unless the scope or allocation changes
5 Likes
2

Great proposal. Will help growing the TVL by a lot!
Especially a fan of the rZFI mechanism with 80% vested over 6 months.

3

Great proposal overall and a strong step toward long-term alignment.
That said, I believe it’s important to highlight one key risk: even with a 6/10-month vesting, token distributions naturally create future sell pressure.

We’re currently in a strong or even overheated market phase. By the time rewards fully vest, the token could be trading much lower, exposing recipients to losses and increasing the chance of mass selling.

Introducing a buyback and burn mechanism would help counteract that sell pressure. Burning part of the supply also adds healthy deflationary pressure, increasing scarcity and strengthening the long-term value of ZFI.

This would support price stability, reinforce trust in the token’s utility, and reward those who hold/use over time, not just those who farm and exit.

1 Like
4

This is interesting, yes — and this vesting period is meant both to incentivize people to join the protocol and to reduce selling pressure.
A buy-back and burn mechanism would be great for scarcity, but that should be addressed in a separate governance proposal

5

This is a well-thought-out and forward-looking incentive proposal.

I really appreciate the shift away from short-term farming mechanics toward a more sustainable, time-locked reward system like rZFI. The structure encourages long-term participation and gives users meaningful governance exposure over time, rather than instant liquidity that often leads to dumping.

The global AUM-based eligibility across all ZyFAI Smart Wallets — regardless of network — is a big win. It simplifies the user experience and removes unnecessary friction that’s common in other multichain reward programs.

Also, giving 20% immediate access while vesting the rest over 6 months strikes a nice balance between short-term liquidity and long-term alignment. The burn mechanic for early redemption adds further economic discipline.

The only area I’d like to see more transparency on is how the Reward Committee (Ondefy Ltd) will communicate changes to emissions and eligibility criteria. Still, the modularity and flexibility built into the design are clearly well considered.

Overall, this proposal is a smart way to bootstrap real usage while keeping ZyFAI aligned with long-term contributors. Fully support it.