Two-month renewal of the reward locking program

Author(s): Risk Labs

Summary:

This proposal outlines a two-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.

Motivation:

At the time of the ACX token launch, we also launched the Rewards Locking Program. The original program budgeted 75M ACX and was intended to last about 6 months. At the time of writing this proposal, this program has seen 16,957,214 ACX paid, 54,493,557 ACX earned, and 3,549,229 remaining. In order for this program to continue, we'll need to vote to do so.

Specification & Implementation:

This proposal budgets another 25M ACX towards this program, with no changes to the current base emission rates. Those are:

• 50,000 $ACX per day for Across ETH LP tokens
• 50,000 $ACX per day for Across USDC LP tokens
• 5,000 $ACX per day for Across DAI LP tokens
• 5,000 $ACX per day for Across WBTC LP tokens
• 5,000 $ACX per day for Across USDT LP tokens
• 20,000 $ACX per day for Across ACX LP tokens

This budget should last around two months, at which time we will need to vote again to renew the program. At that time we expect to have additional tokens that we'll want to add to this emissions schedule. To implement this proposal, the Across DAO Treasury would send 25M 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 two-month 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. We also anticipate adding new tokens during that time, and it's likely that we'll want to vote to include them in this program.

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 25,000,000 ACX tokens 0x44108f0223A3C3028F5Fe7AEC7f9bb2E66beF82F to the Accelerating Distributor contract 0x9040e41eF5E8b281535a96D9a48aCb8cfaBD9a48 to renew the Rewards Lockining program for ~2 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.