IMPROVED Proposal , SHARE DAO and Senoirage %

Now that we have timelocks in place, we can move to phase 2. this is proposed

New senoirage weighting

-xBOND 40%
-SHARE/ETH 20%
-USD/ETH 20%
-SHARE Holders bonded to DAO 20%
(delete usdc/usd) rewards, this is zombie pair)

The last point will be slightly different than we have and mimic ESD.
The purpose of SHARE is for voting (hence rewarded) I propose that in order to receive 20% of senoirage, SHARE holders must Bond their SHARE into a Dao. It will work like

-Upon Bonding SHARE, you are immediately eligible to VOTE and for a proportional share of the 20% rewards (vs all others bonded)
-When you wish to Unbond your SHARE there is a 3 day unbond period (your share is not accessible during this period) where you will receive no rewards.

  • Seniorage USD is always claimable during positive rebase…
2 Likes

I agree that the 20% reward distribution for share should depend on bonding tokens for voting. Making rebase rewards contingent on voting should be a part of any governance proposal to change the rebase allocation.

I have also put alot of thought into your share/bond/LP breakdown. I’m leaning towards agreeing with your 40 bond 20 share and 20/20 LP breakdown for a few reasons. The first reason is that since one of the pools is being deprecated (USD/USDC) There is an issue that the LPs from that pool will flood into the ETH/USD pool essentially cutting the rewards in half. The second reason is the potential for impermeant loss on the ETH/Share pool necessitates an increase in reward. Thirdly as more liquidity comes in there will be less rewards to go around especially for smaller LPs that have been with DP since the start, so has a certain fairness to it.

Regarding the reduction in Bond reward I actually think it could be a net positive for the protocol. The reason is that people will be incentivized more to get into bonds during a negative rebase and to provide liquidity and buy shares during a positive rebase. Which furthers aligns the protocol with its intended design.