Indexed

Author: Dr Laurence E. Day

Edited by Dillon Kellar

Approved Snapshot Vote

https://snapshot.page/#/ndx.eth/proposal/QmNsJoELGNFWfQDptpmexeHQy1bmKhBzPe76deG9v5J3fA

Discussion Thread

https://forum.indexed.finance/t/proposal-stopgap-staking-reward-schedule/471

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As you’re all aware, staking rewards have ended for the following pools:

• DEFI5
• DEFI5-ETH Uniswap LP
• CC10
• CC10-ETH Uniswap LP

Insofar as getting NDX distributed for the purposes of diluting power from the founders goes, this was a success. However, now that this is done, we’re faced with a dilemma:

a) We don’t want to completely cut short incentivisation for liquidity providers - it’s an effective way of buffering against impermanent loss, but… b) Handing out 25% of our maximum supply every three months is, in every sense of the word, unsustainable.

We’re also in the unfortunate situation whereby the ORCL5 pool has zero incentivisation beyond it’s USP of being the only aggregate instrument for exposure to that particular market sector, which - if we take TVL as the metric of choice - is not enough.

Members of the Sigma committee and the core team are currently working on a proposal for a longer term, dynamic reward emission schedule parameterised over TVL on a per-index basis, which we intend to `solve’ this problem over a period of years rather than months. The first sighting of this idea in the wild is here, but it is not ready for consideration.

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To this end, I’m making the following proposal, in the hopes that we can fast-track it into action if it’s agreeable.

Action Points

• Allocate 100,000 NDX from the DAO treasury for a one-month continued emission schedule, split as follows:

  • [50,000 NDX] DEFI5-ETH Uniswap LP
  • [40,000 NDX] CC10-ETH Uniswap LP
  • [10,000 NDX] ORCL5-ETH Uniswap LP

• Begin emissions for these new reward pools to minimise the amount of time that we’re `off-road’.

• End the `pure’ DEFI5 and CC10 pools upon expiry. Their purpose (fast dissemination of NDX) has been served.

• Deduct this 100,000 NDX from whatever amount we determine the longer-term final allocation to be (i.e. if we allocate 2.5 million NDX over a two year period, we’d initialise with 2.4 million instead).

  • As a case in point, if those were the numbers we ended up using, we’d be handing out ~104,000 NDX per month anyway, so this is a stopgap in the truest sense of the word.

Transactions

1. Create staking rewards pool for ORCL5-ETH Uniswap LP tokens, with 10,000 NDX over 30 days.
2. Set the duration on the DEFI5-ETH staking pool to 30 days.
3. Set the duration on the CC10-ETH staking pool to 30 days.
4. Set the reward amount on the DEFI5-ETH staking pool to 50,000 NDX.
5. Set the reward amount on the CC10-ETH staking pool to 40,000 NDX.