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This proposal would signal approval for:

• Migrating the incentives program to the optimization algorithm implemented by Chaos Labs and Hathor Nodes.
• Implement an Incentives Working Group to maintain and update the incentives program.

Background: The Osmosis Grants Program partnered with [Hidden link] to research, develop, and implement a new method of distributing internal incentives to LPs. This is a continuation from the [Hidden link] with community feedback applied. The algorithm and its methodology can be viewed [Hidden link]. The dashboard shows the first set of incentive changes along w/ the long term target TVL levels for each LP. Chaos Labs has also developed a [Hidden link] to demonstrate the impact the changes will have for each user. The algorithm was developed based on research that has been conducted over the last few months. [Hidden link] has a high level summary of topics that have been researched that led to this initial version of the algorithm. Updates made since the last post can be viewed [Hidden link]. The research is not final, and the paper outlines future research for fine tuning the algorithm over the next few months. The Incentives Working Group would initially consist of:

• Ori, Chaos Labs
• Hathor, Osmosis Validator
• Johnny Wiles, Original Incentives Program Manager The working group will host public meetings monthly or bi-monthly to discuss the state of incentives and improve monthly incentive proposals. Forum Thread: [Hidden link]