AIP-03: Rebase Rate Adjustment

Summary

With the recent turmoil in the market pushing the short term outlook significantly more bearish, there is now a high probability that Aladdin will not be able to sell bonds at a fast enough rate to support the 0.3% rebase rate we had planned initially.

The core contributor team has made the difficult decision to delay the launch of rebase rewards slightly to around January 11 and we are requesting that the community give the core team the flexibility to adjust the rebase rate to market conditions. In this case, we believe a rebase rate of 0.1% will be a good compromise, since depending on the staking rate this will still result in well over 300% APY for early stakers (it will drop as more ALD tokens are staked), but will give the protocol significantly more runway and a better position to weather market turmoil.

We know that this is a bit disappointing for the community (of course including the contributors!), however, we think everybody will agree that we must be smart and adapt to the market conditions to ensure Aladdin survives and thrives, and can achieve its goals.

This snapshot voting will be open to all ALD token holders, including holders of ALD LP positions and unclaimed ALD from LP, farming positions, or contributor allotments. Boule Plus members will have voting right equal to 5000 ALD in this vote. xALD will be included too.

Next Step

If this proposal has more than 50% support at the end of the voting period, rebase rate will be set at 0.1% for full launch.