[BIP-13] Proposal for adjusting the rewards for Epoch 2 of the 3,3 pool

It is exciting to see that there are so many of you who have shown great enthusiasm to the 3,3 pool and enjoyed the rewards. Hundreds of members actively participated in performing the boring ritual every week. We have reached a total of 65M in TVL and the APYs for both pools have remained above 2000% for nearly one month. Originally, we launched the 3,3 pools as a special offer for BoringDAO’s first anniversary celebration and we planned to run for only one epoch, which is 28 days. Over the past one month, we’ve heard voices from our community members that they wish to enjoy the 3,3 pools for a longer period of time. We hereby decide to continue with the second epoch and update the pool rewards accordingly.

Our current emission rate for the oPortal farms is about 36,000 BORING per day and for the Boring farms is about 100,000 BORING per day. For the 3,3 single staking pools, the daily emission rate is about 500,000 BORING, which is almost four times as much as that for the oPortal and Boring farms combined.

Some of our considerate community members have kindly pointed out that this will lead to a much higher inflation rate in a relatively short period of time, affecting future value of the BORING tokens significantly.

It has come to our concern that there is a trade-off between the benefits of high APYs and the risk of token inflation. If we keep the current emission rate or increase it by 20% for the second epoch as some may wish, there will be a sharp rise in the inflation rate. On the contrary, if we reduce the daily emission rate by 50%, the APYs for the pools will drop fast and the 3,3 pools will become a less favorable place for BORING holders to stake. There’s a fine line between lowering supply and damaging the farm APYs. So we have come to a compromise that is to slightly reduce the BORING tokens distributed to the 3,3 pools, which could lower the supply while keeping the demand high. In the long term, our token prices will rise due to a lower supply with the sustaining decent APYs on farms and pools.

We’d like to hear your opinions on the reward adjustment for the second epoch, and here are the choices: