Problem:

We need a stronger incentive to hold moons so they can be used for governance as intended. Many of the most active users sell large percentages of their Moons and don't contribute to governance, which goes against the premise of Reddit Community Points.

Additionally, many users have complained of a large influx of "moon-farmers" who primarily contribute (often low quality content) to the subreddit in order to gain and immediately sell Moons.

This proposal introduces a Karma Multiplier based on Moon Retention to rewards users for holding and penalize those who don't.

Summary:

I encourage everyone to read the entire post, but here are the main points

• Each snapshot, a user's Karma will be multiplied by the percentage of all earned Moons they have kept in their vault (with a couple caveats explained below). This multiplier will have a maximum value of 1.0 and a minimum value of 0.10.
• If you hold at least 75% of your earned Moons you will not be penalized. In fact, you will earn more Moons than in the current system due to a higher Moon/Karma Ratio.
• In Round 24 the Moon/Karma Ratio was ~0.457. Had this proposal been implemented, it would have been ~0.527
• Moons used to buy special memberships will NOT be penalized.
• CCIP-002 (20% karma bonus for holding) and CCIP-010 (100 Moons tipping buffer) will be deprecated in favor of this proposal
• Mods will have a similar multiplier in place for the separate mod distribution, with excess Moons being kept in u/TheMoonDistributor.

Technical Details (Users):

The Karma Multiplier (KM) will be calculated as follows:

KM = (Current Balance + Membership Purchases) / (Total Earned Moons * 0.75)

Here is the rationale behind this equation:

• We don't want to discourage tipping, so we multiply Total Earned Moons by 0.75 to allow for 25% of your balance to be sent from your vault (for any purpose) without penalty.
• Reddit membership purchases paid for in Moons will not be penalized
• KM will have a minimum value of 0.10 so that users who sold moons can still earn them back by contributing in the subreddit, but it will be tougher to do so. If this poll passes and you disagree with this minimum value, you can propose a modification in a future governance poll.
• KM will have a maximum value of 1.0 to remain consistent with current governance philosophies (e.g. not pay-to-win)
• Users with 0 earned Moons will have a KM of 1.0

To view your *ESTIMATED* Karma Multiplier, you can visit this website and search for your username. Keep in mind that I am not an admin and these reflect my current estimate.

Technical Details (Mods):

Moderator-specific distributions are not based on Karma, but instead are a fixed percentage of all the Moons being distributed in the round.

We will use the same multiplier as above, but apply it directly to the number of Moons the moderator would have received. Any excess Moons will be held in u/TheMoonDistributor to keep voting power, but won't be distributed to the specific moderator.

For example, if a moderator was set to receive 10,000 Moons, has a current balance of 50,000 Moons, has earned 80,000 Moons, and has used 5,000 Moons to buy the special membership, they would receive:

10,000 * ((50,000 + 5,000) / (80,000 * 0.75)) = ~9,167 Moons

The remaining ~833 Moons would be held in u/TheMoonDistributor

Note: The proposal can be viewed as harsher for moderators than users since mods who hold won't get more moons than they would in the current system (since Moons/Karma ratio is irrelevant for mod distributions), while users who hold will.

FAQ

• Is this regulating how people use their moons?
  • Users can still do whatever they want with their Moons. This proposal is meant to incentivize holding and using Moons for governance, and to deter users who only contribute to the subreddit in order to earn and sell Moons.
• If KM has a max value of 1.0, doesn't that mean I will earn fewer Moons than before?
  • NO! As long as you hold >75% of your Moons you are guaranteed to benefit from a higher Moons/Karma Ratio. In reality, you can hold <75% and still benefit. For example, due to an increased ratio, users who held >65% of their Moons would still have benefited had this proposal been implemented in Round 24.
• Will users who sold moons in the past be penalized?
  • Yes. I agree that this is a potential negative aspect of this proposal. However, if these users continue to earn, or otherwise transfer Moons back to their vault, their KM will steadily increase over time.
• Why deprecate CCIP-002 and CCIP-010?
  • There is a lot of confusion in the subreddit about how the 20% bonus works in CCIP-002 and this proposal is a stronger incentive to hold. The 25% buffer replaces the hard-coded 100 moons limit in CCIP-010

Pros:

1. Stronger incentive to hold than current system.
2. Deters users who primarily contribute to earn and sell Moons
3. ~95% of all users would have earned more Moons in Round 24 with this proposal. Of the top 1,000 Karma earners in round 24, ~83% would have earned more Moons.

Cons:

1. Users who sold, transferred, or tipped a large percentage (>25%) of their Moons in the past will have a low Karma Multiplier

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