Sunset FRENS

Author: Dr Wagmi#6629 Gotchi ID: 16635 Discourse Thread (Idea/Proposal): https://dao.aavegotchi.com/t/sunset-frens-by-october-1st/4255

I propose that we cease FRENS emissions immediately. FRENS emissions have been used as a liquidity mining (LM) incentive by providing GHST holders and liquidity providers access to future content through the raffle system. While this was an initially effective tool for LM, it is now doing more harm than good. Outlined below and in the forum thread are the reasons why Aavegotchi should sunset FRENS:

• Eliminating FRENS will reduce Aaveogotchi protocol pressure to hold dilutional events by eliminating ongoing “content debt” created by FRENS emissions
• GHST has alternative staking utility with GLTR liquidity mining
• Shifting focus to alchemica/GLTR pairs reallocates LM rewards to asset holders who are more directly providing value to the ecosystem in the form of liquidity vs single-sided GHST staking which provides limited and historically overcompensated value
• Future content events can generate protocol revenue instead of paying out content debt. This allows for a more sustainable revenue stream for Pixelcraft and the Aavegotchi DAO
• The value of future content can be captured on-chain with GLTR/Alchemica/GHST instead of off-chain with FRENS
• Capturing on-chain value of the above native assets will significantly add utility to all tokens

Current FRENS and raffle ticket holders must be acknowledged with raffle(s). There are multiple avenues for this which are outlined in the DAO forum thread. The community can design and publicize events to utilize these FRENS which will be an easier task if we stop further emissions and narrow the scope of the raffle with cessation of FRENS’ emissions.

There will be an additional signal proposal outlining changes to GLTR emissions to support liquidity provision for the GHST token specifically. While the bonding curve is in place, it is important that a sustainable GHST liquidity plan is in place that captures and rewards LPs fairly and sustainably.

Dr Wagmi