Tom pool: what should the ADX incentive be in 2021

Abstract So far, the ADX incentives for the Tom pool we announced back in August have improved ADX tokenomics massively: to date, nearly 4 million ADX rewards have been distributed and over 25 million ADX have been staked, resulting in around 21 million ADX being removed from the market.

We've also been able to sustain a ~50% APY despite the death of the farming craze.

Given the success of those incentives, we should keep them going into 2021.

Does minting new ADX dilute holders? Minting new ADX to distribute to stakers only dilutes the non-stakers: if you're staking, your share of the ADX supply only grows, in favor of non-stakers.

This is intended, as it discourages holders from keeping ADX dormant on exchanges and incentivizes token utility, leading to more ADX locked up in staking.

Proposal

Mint a certain amount of ADX that will be distributed to stakers in the Tom pool during the entire length of 2021.

The options are 20 million, 15 million, 10 million and 5 million.

Higher amounts will mean higher APY, but will move the ADX supply quicker towards it's maximum of 150 million. To approximate the APY of each option, divide it by the total amount of ADX staked in Tom. For example, with 20 million, the APY will be approximately 68%.

How to vote In order to vote, you need our governance token $ADX-LOYALTY, which is minted by staking in the AdEx loyalty pool at https://staking.adex.network

References: Original announcement: https://www.adex.network/blog/new-token-economics-and-staking/ Full guide: https://www.adex.network/blog/adex-defi-staking-overview/ ADX-LOYALTY explainer: https://www.adex.network/blog/loyalty-pool/