Proposal #397
Passed on 21 Jan 2023 with 80.3% of the votes for yes.
Yes
80.3%
100.0% without abstain
Veto
0.0%
of votes cast
Ended
21 Jan 2023
80.27%
of votes cast
19.70%
of votes cast
0.03%
of votes cast
0.00%
of votes cast
This is a proposal to phase out OSMO incentives to taper the liquidity of the EEUR stablecoin in light of the e-Money team announcement on the 9th of January 2023.
Background e-Money has ceased further issuance of its Euro stablecoin, EEUR, as of an announcement on the 9th of January 2023. Redemption mechanisms continue as usual until the 6th of March 2023 along with continuing arbitrage mechanisms that maintain the peg.
The full announcement can be found here: [Hidden link]
Plan
After this proposal has passed governance, incentives for pool #481 will be removed according to the following schedule:
This Proposal: Directly removes Superfluid Staking from Pool 481 (~5.9% APR reduction)
Routine Incentives proposal on 23rd January, Effective epoch of 29th January: Incentives set to 50% of the existing allocation (~5.5% APR reduction at current liquidity)
Routine Incentives proposal on 30th January, Effective epoch of 5th February: Total removal of OSMO incentives (~5.5% APR reduction at current liquidity) and removal of EEUR from the list of Stable assets
Justification Without lowering OSMO incentives on the EEUR pool, it remains an attractive place to provide liquidity, attracting new users to use EEUR as a stablecoin despite one aim of the unwind period being to reduce the number of holders to those who need to redeem directly with e-Money.
Tapering allows users time to see the announcement and unbond manually while using the maximum setting to prevent the incentives from increasing due to any additional volume the pool may see from holders exiting.
Commonwealth Thread: [Hidden link]