ZRX Portal and Governance H1 Update

ZRX Portal metrics and 0x governance updates.

It’s been a few months since the latest update on ZRX Portal, so we wanted to share a recap of what has happened in Q2!

0x Governance and Community Engagement

In the latest governance update, we established that the immediate priority was to foster engagement within the 0x community. That meant investing more in processes that encourage open dialog and participation in governance of the protocol.

As part of the strategy, we first proposed a formalized ZEIP process that includes templates, standardized tagging, and categories. The proposal was accepted by the community. Subsequently, there have been two other community votes. We were able to observe the following patterns:

  • Voting turnout in 2020 was higher than in 2019 when accounting for ZRX delegators. ZEIP-76 passed with 8.9M ZRX and 1564 voters, ZEIP-77 with 10.9M ZRX and 1799 voters, ZEIP-79 with 8.7M ZRX and 2398 voters. Voters include delegators of staking pool operators.
  • Staking pools operators (liquidity providers) have accumulated significant voting power, as expected from the token economics introduced in 0x v3. In all votes, pool operators controlled the vast majority of the vote outcomes.
  • During the voting window of ZEIP-79 (the most controversial of the lot), staking pool operators engaged in a productive conversation around the rationale behind the proposal, sharing their concerns and feedback. This was a solid display of participation, care, and engagement by the community, more specifically by actors who have the highest stakes in the system.
Voting power distribution of 2020 votes
Turnout per vote, including delegators. Some addresses might be included in multiple pools

Lastly, we want to thank everybody who is actively participating in Discord, 0x social channels, and during 0x developer calls. It’s difficult to put a number to those interactions, but we definitely felt engagement steadily increasing over the last few months.

Staking stats

As described above, the governance of 0x protocol was deeply influenced by the adoption of the new staking system. As per today (August 5th), 5037 tokenholders staked approximately 21M ZRX with 0x liquidity providers. Over 800 ETH in protocol fees have been distributed in 2020 so far. The protocol fees collected have been steadily growing, even after the 0x Labs team stopped subsidizing rewards in May, and after the protocol fee multiplier was reduced.

Protocol fees generated per epoch since inception. In April (epoch 19), epochs duration changed from 10 days to 7 days

It has been very interesting to monitor the share of stake across the top-performing pools over time. Our assumptions on the game theory dynamics of the system were confirmed: ZRX staked seemed to ‘follow’ the best performing and most consistent staking pools. It was particularly interesting to observe that staking pool operators increased their rewards shared with delegators.

ZRX Staked and rewards shared [%] per pool over time

As you might have noticed from the screenshots above, these figures are now public in the dedicated Dune analytics dashboard. This dashboard includes a few key metrics, including the annual “ROI” of staking pools. It’s important to note that this figure is updated each epoch and is also subject to ZRX/ETH exchange rates.

Annualized staker pool return per epoch

ZRX Portal stats

ZRX Portal is the app where ZRX holders can put their tokens to work by voting on proposals and/or staking their ZRX with liquidity providers who are sharing rewards. We observed a steady growth in usage of the website and wanted to share a few stats 6 months after it was released. Approximately 1,400 people visit ZRX Portal daily, ~9,000 weekly, and ~28,000 monthly.

ZRX Portal (https://0x.org/zrx) active users

Perhaps it should not come as a surprise, but most of the visits came from mobile (approximately 80% of total). The wallets most utilized are Trust and Coinbase Wallet. Here is a breakdown of the conversion rates broken down by wallet:

Distribution of wallet used to stake

Finally, it’s interesting to have a look at the geographic distribution of ZRX Portal users. While most of the token holders who staked accessed the website from the US, a significant number of visits came from Nigeria, India, and the Philippines. These visits resulted in a lower, but still non-negligible, conversion (stake) rates. While usage of VPNs could be a factor, it seems a strong enough signal to suggest that 0x tokenholders communities exist in those countries.

ZRX Portal users by country, last 28 days

New features: revamped account page, rewards per ZRX

The account page was revamped to make it easier to keep track of the rewards generated while staking. The new section includes the rewards available for immediate withdrawal, the lifetime rewards, and the estimated rewards to be generated in the current epoch. Also, we added a new ‘account history’ page to help keep track of all the staking interactions — including rewards generated per pool.

The homepage table now displays pools’ average rewards shared, which should give a sense to token holders of how much ETH each pool shares, on average. This replaces the ‘rewards shared %’ parameter, which in the context of the homepage table isn’t adding a lot of value and was confusing to users. In the next iteration, we are considering displaying the dollar figure of the rewards generated per ZRX token staked.

ZRX holder, this is your home.

To conclude, we want to reiterate that ZRX Portal is a 0x community asset, meaning that it’s built by and for the community.

With that in mind, we recently opened a gitcoin bounty to revamp the web3 framework used in the Portal, in order to add WalletConnect mobile support while migrating the current set of wallet integrations. This is especially important for Trust Wallet users who staked using their iOS app, as the app recently removed the dApp browser feature.

Once that project is completed, we are planning to open another bounty for adding a staking calculator feature to the portal. 0x Labs designers already prepared sleek designs of the feature, so we welcome any web3 developers willing to help us implement one of the most requested features.

We hope this will open up more opportunities to expand participation from voting to building concrete parts of the 0x platform. We are looking forward to testing this model, which could be applied to other parts of the stack (including the smart contracts themselves), coupling it with the ZEIP process.

If you’re not a developer, don’t worry. Visit our dedicated Discord channel and share your feedback and ideas. Your contributions have been instrumental to reach all the results listed above.


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