DAO Sponsored Proposal
Please note this proposal may be edited during the pre-proposal period (7 days).
If this proposal passes:
- the SPS DAO will reduce the SPS inflation currently being paid by roughly 65% . Please note this is a reduction instead of a rerouting of LP incentives. This opens up the allocation to incentivize more pools in the future.
- the SPS DAO will remove roughly $1.2million worth of SPS:BNB LP (over 59% at the time of writing) and add it to the SPS:BNB v3 1% pool with an infinite range. This essentially mimics the same liquidity we had before, with the DAO is now earning roughly 4x the trading fees it used to, but no longer receiving a portion of the SPS incentives.
Although we are proposing a 65% reduction in inflation, this actually aims to mimic the same effect as the other SPS LP proposals. This is because the vast majority of SPS inflation rewards are being earned by the DAO right now, so by moving the liquidity, this opens up 100% of the remaining rewards to the community. Therefore, we are essentially more than doubling rewards, then reducing by 65%, resulting in a roughly 15% reduction overall.
Benefits
- Significant reduction in SPS inflation
- Should have roughly the same liquidity as before since the end result aims to mimic the impact to the end user as the other LP proposals
- The DAO will earn a mix of SPS and BNB from trading fees, instead of just SPS from inflation rewards which helps with diversification
Negatives
- The DAO will earn less SPS than before from the SPS:BNB LP