Upgrade the ADX Loyalty pool price ladder

Retrospective

The ADX-LOYALTY pool price ladder is a mechanism that adjusts the APY according to the ADX price.

The underlying concept is:

• Create a positive feedback loop that rewards holders when the price is high and incentivizes them to keep holding
• In a bull market where ADX is uptrending, issuance is justified, as it helps our marketing, keeps our APYs competitive, and does not damage confidence
• In a bear market, tokens with low or negative issuance are appreciated more

See this article on how it works: https://help.adex.network/hc/en-us/articles/360017158819-Understanding-The-ADX-Loyalty-Pool-and-Elastic-Issuance

Proposal

Currently, ADX is not perceived to be in an uptrend, but according to the old price ladder, the current price is still on one of the highest steps at 35% APY.

We're proposing that this new price ladder becomes active on the 27th of July:

• Up to $0.05: 5% APY
• Up to $0.10: 10% APY
• Up to $0.20: 20% APY
• Up to $0.35: 25% APY
• Up to $0.50: 30% APY
• Up to $1.00: 35% APY
• Up to $2.00: 38% APY
• Up to $2.50: 40% APY
• More: 40% APY

This also ensures that the loyalty pool does not compete with the Tom pool

Voting

Tom pool holders can now also vote on this proposal.

The voting power depends on the amount of staking tokens that you have (ADX-LOYALTY and ADX-STAKING), which favors early stakers over later stakers, since those are share tokens.

For example, if you staked early, going in with 10 ADX issues you 10 ADX-STAKING. But after the pool has already incurred 20% rewards, 10 ADX issues you 10/1.2 ADX-STAKING.

Timeline

• Voting: 20.07.2021 - 27.07.2021
• Implementation and deploying: 27.07.2021