Post Share Mining Economy

One day, share mining will end and all 21 million Shares ever in existence will be online.

The question is at that point what’s the purpose of providing liquidity (for liquidity mining).

One possible solution is to take inspiration from Bitcoin. Once bitcoin mining ends, the miners will be incentivized from the transaction fees on the network.

Therefore, drawing the analogy, perhaps the existing SHARE-ETH liquidity mining pool and maybe the USD/USDC pool can also earn a % fee on user’s transacting using USDx and all the other synthetic assets.

To start, the fee could be something relatively small like 10 basis points. This would automatically be redirected pro rata to the specific lp mining pools. The pools would be able to be claimed every rebase period for the total amount of fees accrued.

Share holders would then be able to adjust the fee based on external factors.

Technically speaking, this can be implemented by always reserving around 10 bps of a user’s USDx for fees and letting him/her spend the rest.

10 basis points on $100,000 would only be $100 (100,000 X 0.001). So a user with 100,000 USDx would only be able to spend 99,900 USDx.

3 Likes

I’m glad this has been brought up as this is something I have thought about. I really like this idea, and as we scale with more synthetic assets, the faster these reward pools will fill up.

This has my vote

I like this idea. Its a good way to diversify the value generated by the network and prevent negatively impacting current rewards.