[AIP-71] Proposal for Long-Term Funding of the Aura Ecosystem

Author

Fry, Contributor

Summary

The Aura Ecosystem Fund (AEF) was last funded on July 18th, receiving 500,000 AURA and 244,000 USDC. As of now, the AEF holds 458,280 AURA and 94,810 USDC, with an estimated burn rate of approximately 35,000 USDC/month.

The operational landscape for the AEF has not changed since the previous funding request. For more details about the scope of AEF activities—including grants, security, and contributor stipends—please refer to the previous proposal dated July 18th.

To secure the ecosystem's long-term funding and mitigate sell pressure on AURA, this proposal suggests creating a 1,000,000 AURA lock, which would generate sustainable yield. Locked AURA currently earns an 89% annual return, equating to about 320,000 USDC per year.

Locking 1,000,000 AURA would minimally dilute existing lockers by approximately 2.63%, reducing a 1% position to 0.97%. Farming voting incentives through a vlAURA position is a more ecosystem-friendly alternative to selling AURA, avoiding adverse price impacts and benefiting all stakeholders.

Specification

This proposal requests 541,720 AURA from the treasury to create a 1,000,000 vlAURA position, achieving:

• A long-term funding plan for the ecosystem.
• Reduced sell pressure on AURA by replacing sales with yield from locked positions.

Voting

This forum post will remain open for three days before the Snapshot proposal goes live. Open discussion is encouraged.

This vote will be a single-choice vote. You may vote “For” or “Against” this proposal, or choose to abstain. By voting “For,” you support granting AURA in accordance with this proposal’s specifications.