RariCapital

This will be used to bridge the gap between now and figuring out exactly how RIP-1 tokens will be used in practice. Once RIP-1 funds start to be used, they may be emitted at a lower rate than in the proposal. The numbers from RIP-1 give the protocol an upper bound, but the goal will always be to minimize their use while maximizing benefit, and their existence merely ensures firepower should the DAO need it, and not an intention to use all the funds.

Summary: Mint the amount of tokens that have been burned for pool2 rewards (liquidity mining the RGT-ETH pair on Uniswap) to increase liquidity across the ecosystem.

Background: Liquidity is necessary in order to get listed on various platforms: centralized exchanges, money markets and a lot more. This proposal aims to increase liquidity through the use of smart liquidity mining on the RGT-ETH pair on Uniswap. This proposal is independent of RIP-1.

Abstract: A fellow Rari Forum user (linked here: https://forums.rari.capital/d/18-liquidity-provider-incentives-as-mining-ends) proposed an idea that would mint more tokens (the difference from what has been burned), 555,000 $RGT (at the time of writing) to offer as an incentive to people who enter as an LP into RGT-ETH on Uniswap.

I propose for us to take this token difference and mint the difference in tokens to incentivize liquidity across the next three years on the following schedule:

https://docs.google.com/spreadsheets/d/1scL-iG6j7ywc6Clm5hJY1guvZqL8bF_3jPCkNR75QUk/edit?usp=sharing

This rewards early liquidity but also does not favor it too much, rewarding early adopters but ensuring that everyone is compensated for their contributions for the next few years.

At a later date, governance can vote for the rewards to be switched from RGT-ETH to RGT-REPT. We cannot do this at this time without putting LP’s at risk for significant arbitrage.

Motivation: $RGT needs more liquidity, which would pave the way to getting listed on exchanges and money markets.