See this forum thread for background and discussion on this proposal.

Discussion has been positive and has shown that this proposal is not only beneficial but necessary. Knowing this, I personally believe that it is in the best interest of the protocol to move forward with this proposal.

Summary

• Re-balancing of WELL rewards distribution across the core lending protocol, Safety Module, and StellaSwap WELL/GLMR farm.
  • Total supply of WELL tokens will remain unchanged.
• 100,000 WELL one-time Moonwell Contributor Grant.

Main Purposes:

• Incentivize liquidity by maintaining target yield rates despite ever fluctuating TVL.
  • Stay on track of the budget to distribute 750M WELL (15% of total supply) as rewards to users over 4 years.
• Promote staking in the Safety Module.

Specific Changes:

Distribution Weighting

• Safety Module: 20% → 29%
• DEX LP: 40% → 38%
• Core: 40% → 33%

Reward Speed

• Safety Module: 1.19 → 1.73 WELL/second (Target APR: 80.28%)
• DEX LP: 2.38 → 2.27 WELL/second (Target APR: 100%)
• Core: 206044 → 169986 WELL/day (Target APR: ~2-4%)

Moonwell Contributor Grant

• 100,000 WELL → 0x7e4a3edd2F6C516166b4C615884b69B7dbfF3fE5

A draft of this proposal has been shared with the Moonwell team. They have also thoroughly unit-tested it to ensure that everything goes smoothly if this proposal passes.