[Proposal] Suspension / Removal of USD rewards from Mining

While USD mining rewards are nice to have during expansionary rebases, they are an impediment to re-pegging during negative rebase cycles.

This is because the demand for USD is already lower. Additional USD supply from mining does not help with the protocol.

We propose to add an upgrade to the protocol to allow deletion of USD from the mining contracts to reduce the USD inflow.

2 Likes

I agree with this measure but would like to suggest USD rewards for the SHARE pool remain or even be increased. With only SHARE tokens being issued as rewards this potentially places added sell pressure on SHARE tokens.

To offset this sell pressure, I suggest we incentivise more people to stake their SHARE tokens and mine

Which share pool are you referring to? share/ETH or share/usd?

the issue is that incentive creates more inflation.

Not saying it can’t work but that is the downside to it. Agree increased share utility would be great via burning or mining or whatever other process.

Robert is pretty big brained, I’m more inclined to go with what he suggests as it’s a simple fix.

please review this git commit with the removal of USD rewards from Mining: https://github.com/Dollar-Protocol/Core-Contracts/commit/798fc616798c6d886b8c018fbe7212ee191a92aa

Please let me know when you’re planning to do this so I can harvest the pool one last time.

well i think the community should give input - happy to merge this whenever

i think the best is whenever any miner claims their rewards it would collect all those USD to a contract and distribute some portion to the treasury which will only sale these to stable coin like USDC if USD price goes above $1.1 or something.

also keep some portion for SHARE holders on a contract. these should only be possible to claim if price is above $1.1.
by this SHARE holders will atleast know that their share is accumulating USD even when there is negative rebase.

this will help USD during negative price as treasury funds can be used.

this will reward SHARE holders during the painful time of negative rebases.

will also attract more users to burn their USD for SHARE as they know it will accumulate more USD.

1 Like

vote with your shares: https://snapshot.page/#/dollar-protocol/proposal/QmPSxnP8D9zuRCs1brvg5XQjKztHPExYkFTtNV65gqJo5q

This is a bit too complex of a function to add right now I think. I believe all this proposal does is delete the usd that is currently in the mining contracts. Is that correct @Robert?

I think this is a good idea and perhaps could be implemented in future. Maybe keep this on the shelve for next time.

yeah i agree - let’s keep each upgrade simple and manageable. too big of upgrades has more room for errors IMO

1 Like

I do think with this measure, which ill support, we should also be looking at ways to support SHARE liquidity as we dont want the consequence being that SHARES drop dramatically.

Edit: im going to add my vote a bit later when i claim.

errors can always be tested on testnet. are you not going to check the works on testnet before publishing live?

if you are just removing those USD from rewards. where will it go? all will be burned?

so after this change it will keep distributing the positive rebased USD as it does currently but will only remove it from supply when people claim it?

I believe so yes. But that won’t happen until usd is back over $1 so it doesn’t matter as much. If we want to remove it completely from the contracts that would be a larger code change I think.

it will remove the USD when the pool transfers funds or people stake / unstake.

Instead of removing/burning it, can we not transfer it to an up-gradable contract, which can later be used to decide what to do with these USD?

i think that is too confusing and doesn’t make much sense. If you want there to be more USD you can always decrease the rebase lag.

its good then. i was just thinking that later community can decide what to do with these USD. but as you said we can have more USD if needed.

is this github commit you shared is only about removing USD or it also has code for Share Discount?

only removing USD right now