[ARFC-Addendum] Introduce "Hold StkGHO" Reward Action

Title: [ARFC-Addendum] Introduce "Hold StkGHO" Reward Action

Authors: @ACI (Aave Chan Initiative)

Date: 2024-03-08

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Simple Summary

This ARFC-Addendum proposes introducing a new rewarded action, "Hold StkGHO," within the Merit program. It also involves removing the StkGHO component from the "Staker" boost and approving the delayed start of GHO distribution.

Motivation

To expand the Merit reward system scope and address concerns about long-term AAVE rewards for StkGHO holders, we propose introducing a new rewarded action: "Hold StkGHO." This change allows for a smooth transition to a safety module that is eventually 100% rewarded in GHO.

While there is an overlap between "Borrow GHO" and "Hold StkGHO" rewarded users, this outcome is considered acceptable. The introduction of a new rewarded action for "Hold StkGHO" allows us to address concerns about rewarding users for non-enforcable actions due to the GHO borrow cap reached. "Holding StkGHO is an incentive to liquidity sink GHO and secondary market demand.

Specification

Proposed Changes:

1. Introduce a new rewarded action, "Hold StkGHO."
2. Remove the StkGHO component from the "Staker" boost to avoid circular logic.
3. Approve the delayed start of GHO distribution within the Merit program.
4. Prioritize StkGHO holders' rewarded actions over having GHO debt in the Merit distribution as long as the GHO borrow cap remains below 50M.

Next Steps

1. If this proposal reaches consensus on Snapshot, update the Merit reward system accordingly

Disclaimer

This proposal is made independently by the ACI.

Copyright

Copyright and related rights waived via CC0.