Emissions Simplification

Summary

If passed, this proposal will result in the removal of the vesting period of newly emitted tokens and reduce the weekly emissions rate to 81,700 for Liquidity Mining and 27,233 for Liquidity Provider Rewards.

Details

Since launch, the platform utilized APY token emissions to engender protocol growth and engagement. The tokens adhered to a vesting schedule of 3.89% per week. With the launch of APY.Finance Alpha and platform generated yields on TVL, vested tokens emissions are no longer the core mechanism by which the platform generates yield.

To reflect the current conditions, this proposal seeks to remove vesting from claims and reduce the weekly emissions rate.

Several factors were considered before drafting this position, including:

• Swapping the APY emissions for platform generated yield
• Removing vesting greatly simplifies emissions for all users and makes it possible for the platform to support use cases for DAOs and institutional
• Ensuring long-term, sustainable runway of rewards for boost-lockers, providing a tool to reward community members that are aligned with the long-term vision of the project
• Adhering to the max reward limit of 31.2 M APY and preserving token treasury LPs, and making it easier for other protocols to build off of the platform
• Protecting the long term interests of early APY.Finance supporters

The platform was developed with a max community rewards limit of 32.2 million APY. If we continue to issue 280,000 APY per week (210k for LM, 70k for LP), rewards will be distributed in a more concentrated timespan, a disadvantageous outcome for boost-lockers. Note that in order to emit rewards for the next 4 years at a constant rate, weekly token emissions would have to be at 46,923.

As a first step in reducing emissions, we propose to emit 81,700 tokens for LM and 27,233 for LP per week. In addition, we propose to remove vesting from the new emissions. Currently LM rewards vest for 6 months.

The table below shows how the change to emissions will impact APY.Finance users today and in the following weeks, and . Note that after 6 months, the total emitted tokens under reduced emissions is 80% of the claimable total emitted under the current emissions.

We believe this is a healthy compromise for users claiming APY rewards regularly and moving toward the goal of creating a sustainable runway for emitted rewards. Later proposals will take the reduction further, possibly in conjunction with other incentives.

	Current	Proposed non LP emissions
Week	Emissions	Claimable after vesting (3.89% vesting)
1	210,000	0
2	210,000	8,167
3	210,000	24,500
4	210,000	49,000
5	210,000	81,667
6	210,000	122,500
7	210,000	171,500
8	210,000	228,667
9	210,000	294,000
10	210,000	367,500
11	210,000	449,167
12	210,000	539,000
13	210,000	637,000
14	210,000	743,167
15	210,000	857,500
16	210,000	980,000
17	210,000	1,110,667
18	210,000	1,249,500
19	210,000	1,396,500
20	210,000	1,551,667
21	210,000	1,715,000
22	210,000	1,886,500
23	210,000	2,066,167
24	210,000	2,254,000
25	210,000	2,450,000
26	210,000	2,654,167

Discussion

Visit the discussion on discourse for additional details: https://forum.apy.finance/t/emissions-simplification/160

Vote

This proposal has two options, you can choose to vote Yes or No

Yes

The vesting period will be removed and emissions will be reduced following the passing of this proposal.

No

No action will be taken