Reduction to Liquidity Mining Rewards

[Lakeplacidking]

AIP #8:Reduction to Liquidity Mining Rewards

Author: Christian Brunelle

Summary

Reduce by 90% liquidity mining emissions of ALK token until TVL increases

Abstract

Adjust downward by 90% the rate at which ALK tokens are distributed to users both lending and borrowing funds on Alkemi Earn. Revisit the rate at a future point in time when TVL increases.

Motivation & Goals

Motivation for adjusting rewards emissions is to preserve the token supply. The tokens which are being ‘saved’ by the DAO, may be distributed in the future, once TVL and traction from new partnerships start to increase again. The ultimate goal is to distribute ALK tokens to a growing Alkemi community. Since market volatility has increased, the current distribution is no longer diversified enough to be effective and grow the community sustainably.

Specification & Implementation [How?]

Adjustment to the alkRate will be submitted via snapshot, which will effectively reduce the liquidity mining rewards by 90%.

Vote

Sentiment check [DEADLINE: 06/28/2022]:

• Yes - Approve the proposal
• No - Do not approve the proposal

[McWaterCap]

@Lakeplacidking this proposal makes sense and aligns with some of the better DAO actions currently happening recently. The existing token holders should see value in this. Let’s stem the bleeding until we can better allocate these tokens. I would like to see this go to a vote asap.

[peter]

Added voting mechanism to AIP @Lakeplacidking

[johnshipman]

In favour due to market dynamics and drastic reduction in TVL - reducing rewards while protocol regains ground makes sense

[blockchainbrian]

Thanks for the suggestion @Lakeplacidking ! Given recent market dynamics and drastic decrease in Earn TVL, reducing rewards while protocol regains ground makes sense. to me. Something like Current liquidity mining program not sustainable for long term protocol health - suggest we put this up for a community vote on snapshot ASAP given time is not our friend atm