Cap the Max Earnings Received From Channeling

Author: Quincy1971#6786 Gotchi ID: 5375 Quorum requirement: 20% (9M) Vote duration: 8 days XP Reward: 20 XP for each Aavegotchi in the voter’s wallet Discourse link: https://dao.aavegotchi.com/t/cap-the-max-earnings-received-from-channeling/4748 https://discord.com/channels/732491344970383370/1091512854026399835 PROPOSAL SUMMARY This proposal seeks to replace [Mechanic Change] -- Channel Alchemica through a -2 kinship burn The topic of channeling has become a divisive one since the proposal to increase spillover percentage was raised and later passed. Kinship has been a part of Gotchi lore since the first one was summoned from the first portal and has been a part of Rarity Farming beginning with season 1. With kinship being the basis of how channeling earnings are calculated AND also being a Rarity Farming category, it makes channeling one of the most difficult to really balance. We don’t want to nerf owners by further affecting their earning by targeting kinship but we really need to address the long-term effects channeling poses to the economy. So I propose that we the DAO adjust the base channeling rate and put a cap on the max that a gotchi would earn, or simply put a cap on the multiplier earned thru kinship, at a number the DAO would vote on at a later date. This way a gotchi would naturally come to this set number without affecting RF because kinship itself would still rise normally. This would leave other options more viable for kinship use, for instance, mini games or other areas. Doing this we the DAO could help slow emissions without needlessly hurting gotchi owners. I propose doing this in 2 stages: *The first would be a vote to see if the DAO members are interested in pursuing this. If both the sigprop and coreprop pass, we continue to the second stage. *The second would be a separate sigprop requesting that the DAO fund a bounty to have a third party model, for example, at least three (3) different kinship cap levels to see when at least 60% or perhaps 65% of the channeling gotchi will reach that point, the daily and/or weekly emissions projected before and after the caps are reached. I would open a new thread on the topic to get more input from the DAO on the various parameters that should be included in the modeling. FIRST STAGE The initial proposal is to: *Change the base channeling rate from the current 20 FUD, 10 FOMO, 5 ALPHA, and 2 KEK to 15 FUD, 7.5 FOMO, 3.75 ALPHA and 1.4 KEK *To install a toggle on Gotchi listings to turn channeling On/Off with the default set to Off.

POTENTIAL BENEFITS The changing of the channeling base rate would amount to 25% emissions reduction for FUD, FOMO and ALPHA while giving a 30% emissions reduction to KEK. *FUD total channeling is ~472k-FUD would drop to ~354k *FOMO total from channeling is ~239k-FOMO would drop to ~179k *ALPHA total from channeling is ~120k-ALPHA would drop to ~90k *KEK total from channeling is ~48k-KEK would drop to ~33.6k {Numbers are current as of 4/7/2023} This change would immediately target emissions directly rather than a “quid pro quo” mechanic that is dependent on player actions. This is not meant to be immutable. I envision the DAO having the ability to adjust the base channeling rate along with the multiplier or channeling cap based on the economic situation in the future. This should take very little DEV effort to implement and would not negatively affect Rarity Leader boards by intermingling it with daily tasks . Both low kinship gotchi and newborn gotchi will still be able to gain kinship and a cap is easily understood by new players being that caps are very common. Allows space for kinship to be utilized in other areas; for example mini-games and crafting. A toggle would help future proof lending when kinship could be used while the gotchi was being rented.

POTENTIAL DOWNSIDE The decreasing of the channeling base rate would reduce earnings but with the plan move to the Gotchi Chain the fees to channel will be minimal and the DAO could re-examine spillover rates being that it does not affect emissions.

VOTING OPTIONS The three voting options will be: *Option 1: YES Continue to The Second Stage *Option 2: NO I Am Not Interested *Option 3: Abstain