Three-month renewal of the reward locking program

Author(s): ACX Emissions Committee (AEC) Status: Proposed Related Discussions: Previous renewal

Summary:

This proposal outlines an additional three-month renewal of the reward locking program that was started at the time of the ACX token launch. This program incentivizes LPs who stake their tokens in Across by rewarding an increasing amount of ACX based on position size and age of staked LP tokens in the protocol. It follows the last 3 month extension from this passed vote.

Motivation:

The prior 3 month extension allocated an additional 20MM to the reward locking program. As of August 10th, 2024, there is 50.7MM ACX earned (yet to be claimed) and 48.3MM ACX in the accelerating distributor contract. In order for this program to continue, we'll need to vote to do so.

Specification & Implementation:

This proposal budgets another 15MM ACX towards the Reward Locking program. The current ACX emissions rate is around 99k ACX per day which can be observed on the AEC Dune Dashboard. This budget should last around three months, at which time we will need to vote again to renew the program.

After the approval of this recent proposal, the newly formed ACX Emissions Committee is now responsible for replenishing the Accelerating Distributor contract through DAO governance.

To implement this proposal, the Across DAO Treasury would send 15MM ACX tokens to the Accelerating Distributor contract 0x9040e41eF5E8b281535a96D9a48aCb8cfaBD9a48. You can view past transactions to fund the contract here.

Rationale:

We've elected to use a relatively short renewal schedule to ensure we are optimizing the value and utility of the token. The efficacy of this program in meeting the needs of Across should be continuously evaluated and adjusted as needed.

Downside (Cons):

As with any LP incentives program, there is an inflationary cost to this program. However, it has provided Across with fairly "sticky" liquidity thus far, without which there would be no bridge.

Voting:

A YES vote results in the Across DAO Treasury 0xB524735356985D2f267FA010D681f061DfF03715 sending 15,000,000 ACX tokens to the Accelerating Distributor contract (0x9040e41eF5E8b281535a96D9a48aCb8cfaBD9a48) to renew the Rewards Locking program for 3 more months

A NO vote results in no tokens being sent and the program will expire unless a follow up proposal is made to renew it under different terms