Multiple community members have proposed that Adamant return to a system where ADDY/WETH rewards are determined by the amount the platform earns in performance fees.
Community member arguments:
- One of the core tenets of Adamant's tokenomics was that ADDY was mainly minted based on the profit generated through performance fees. That meant that excess supply wouldn't flood the market during periods of low revenue, such as a bear market.
- Giving ADDY/WETH LPs 200k ADDY/month in rewards has drastically increased the amount of tokens not backed by platform revenue, which has contributed to the downtrend.
- If we want to reverse the price action, ADDY/WETH LP must receive a APR in line with (what was) the token’s fundamental tokenomics plan of emitting based on performance fees.