Proposal #516
Rejected on 30 May 2023: only 8.4% of the decisive votes said yes.
Yes
5.9%
8.4% without abstain
Veto
0.0%
of votes cast
Ended
30 May 2023
5.85%
of votes cast
30.04%
of votes cast
64.09%
of votes cast
0.02%
of votes cast
This proposal intends to be a signaling proposal for use of ProtoRev Funds. Currently, revenue generated from ProtoRev accumulates and sits in a pool untouched and does not benefit the platform.
The accumulated total in the pool is currently made up of the following: ~61,600 OSMO, ~1,200 ATOM, ~2,900 USDC.
See mintscan: [Hidden link]
This signaling proposal would use the ProtoRev in 2 ways.
1 - OSMO accumulated in the module would be issued to stakers as daily rewards.
2 - All other assets (Atom and USDC to date) would be used to purchase OSMO on a daily basis, and burn the OSMO.
As we think about current incentives, we have to think about what we are already incentivizing and what we are not incentivizing.
LPers: Earn Swap Fees + Inflation Rewards.
Stakers: Earn transaction fees + Inflation Rewards
Contributors: Earn a lot through Community Pool and Grants Program
Holders: No direct incentive other than speculation around supply shock and potential growth
I would argue that LPers and Contributors are over incentivized, and the community pool is quite large that it is overfunded as well. Holders are probably the least funded user group in the current structure.
I would agree that buying back and burn is minimal at this time, however it is providing a sustainable incentive path for holders, and could create positive feedback loops.
At the same time burning OSMO in the ProtoRev pool does little good as it is out of circulation anyway. The next best option is to issue the OSMO to those most likely to invest in OSMO token itself to incentivize that behavior more. Therefore, we will issue the OSMO to stakers.
This is only a signaling proposal. If it were to pass, more work would need to be done to chose best method of implementing this plan. This is simply to obtain communities approval to work on such a plan.
See commonwealth discussion: [Hidden link]
Vote ‘Yes’ if you are in favor of this plan for ProtoRev
Vote ‘No’ if you are against this plan for ProtoRev