8IP#7 - Adopt a 30-day staking rewards distribution cycle

Author: zefram.eth; 0xmcfly.eth

This proposal is available on Snapshot for voting between January 19 and January 22 2021 12:00 PM CET. Only xMPH holders are allowed to vote.

Specification

This document proposes an update of the current MPH staking rewards distribution cycle in which xMPH holders receive $MPH and voting rights.

Learn more about $MPH staking program.

From 14 to 30 days

By staking your $MPH for $xMPH, you are eligible to collect 88mph protocol's revenues distributed as $MPH and voting rights. The current distribution model uses a 14-day cycle.

We propose the adoption of a 30-day cycle for distributing the staking rewards. The main reasons for this change are practical and economic.

The $MPH tokens bought back with the protocol's revenues and the distribution to xMPH holders are mainly done with a script though some steps still require manual interventions.

The buyback requires dozens of transactions, eating up the protocol revenues distributed to xMPH holders.

In light of the above facts, it seems more sustainable to increase the distribution cycle to 30 days for the next $MPH staking rewards distribution.

Argument for

• Spend less time on this kind of operation.
• Reduce operational costs to increase the protocol's revenues distributed to xMPH holders by reducing the operational costs.
• A higher exposition to price volatility, leading to the potential value rise of the assets composing the protocol's revenues (COMP, stkAAVE, FARM, GEIST, etc.).

Argument against

• A higher exposition to price volatility, leading to the potential value depreciation of the assets composing the protocol's revenues.

Required actions

Call xMPH(0x1702F18c1173b791900F81EbaE59B908Da8F689b).setRewardUnlockPeriod(2592000)