Chungus on Telegram contributed significantly to this proposal design.
Background: At present, BSD/stable pools continue to emit BSDS, even while BSD < $1. This emission creates downwards pressure on BSD, while not helping incentivize movement of BSD to $1.
Proposal: Align interest of BSD/stable farmers with the overall ecosystem's objective of pegging BSD at $1. To do this, we propose: (1) Pause all emissions of BSDS rewards to BSD/stable pools while BSD < $1. (2) These paused emissions continue to accrue, that is, they will be paid out at a future date when BSD > $1.
For example, we can take block-by-block snapshots of addresses owning LP tokens in the BSD/stable pools. This will allow distribution of accrued BSDS at a later date (similar to the model adopted by Balancer).
Advantages:
Disadvantages: