Stop ACX Emissions on ACX LP

Title: Stop ACX Emissions on ACX LP Authors: ACX Emissions Committee (Kevin Chan, David Korpi, Ryan Carman, Dylan O’Reilly, Chase Coleman) Status: Proposed Related Discussions: ACX Emissions Committee, ACX Emissions Committee Framework Update, Reduce ACX emissions for ACX LPs, WBTC LPs and wstETH/ACX LPs

Summary: The Across DAO should stop ACX emissions for Across ACX LPs. The ACX liquidity pools are being rewarded a high APY in comparison to the utilization of the asset or necessity of the emissions.

The ACX Emissions Committee only has permissions and a framework to control ACX emissions for ETH, USDC, USDT, and DAI. We are putting together this one-off proposal to decrease ACX emissions in a similar way to ETH, USDC, USDT, and DAI.

Motivation: The Across DAO should optimally manage ACX emissions for all liquidity it incentivizes. One way that we have done this previously is by creating the ACX Emissions Committee (AEC). The AEC uses a transparent and restrictive framework to adjust emissions awarded to Across ETH/USDC/USDT/DAI LPs. The framework monitors the utilization and comparable yield alternatives of each asset to make ACX emissions adjustments. Across ACX LPs were excluded from the AEC's purview because there are more considerations than just utilization and comparable yields when we think about what the "optimal" ACX emissions to pay are.

ACX emissions for ACX LPs were initially set high to incentivize ACX airdrop recipients to not immediately sell their tokens and to get these token holders familiar with the reward locking mechanism. Base emissions currently stand at 7.5K per day. ACX utilization consistently sits close to zero given a lack of bridging needs. Yet, the emissions rate for the ACX LP is by far the highest at 11.7K ACX per day (~$2,700) taking into account the multiplier (which exceeds the sum of emissions being used for ETH, USDC, USDT, and DAI).

The AEC believes these emissions are unnecessary and the DAO should preserve ACX capital especially at these price levels. The Across DAO should decrease ACX LP base emissions by 100% from 7.5K ACX per day to 0 ACX per day.

Specification & Implementation: The ACX LP base emissions are currently 7,500 ACX per day. Our proposal is to drop this to 0 ACX per day. If approved, this will be implemented by the AEC.

Rationale: Rationale is described above.

Downside (Cons): As highlighted in previous discussions on the forum, there is the potential that some ACX LPs withdraw their funds and sell -- The AEC believes that this will be a relatively muted effect as strong ACX holders will be unlikely to sell at these low prices.

Voting: Should the Across DAO end ACX base emissions for ACX LPs?

A "YES" vote means that you would like to decrease the ACX emissions being paid to ACX LPs from 7,500 ACX/day to 0 ACX/day.

A "NO" vote means that you would like the ACX emissions being paid to ACX LPs to stay the same.