Cadabra Improvement Proposal #1

The proposal outlines significant changes to Cadabra's tokenomics aimed at making the ABRA token more valuable and increasing the overall Total Value Locked (TVL) of the project. The key proposed changes are:

• Transitioning from deflationary to emission-based ve(3,3) tokenomics, where emissions are directed to reward liquidity providers in Cadabra strategies, AMM pools with ABRA token, and a referral program.
• Introducing a voting mechanism for ABRA lockers to determine the emission rate and allocation for each strategy, aligning their incentives with the strategies' performance.
• Eliminating the Protocol Owned Liquidity (POL) and introducing standard AMM pools where users provide liquidity and receive ABRA rewards. Burning the unsold supply of ABRA tokens currently held in the POL, unlocking upward price movement for ABRA.
• Revamping the referral system to a binary model where referrals receive a share of yields from referred users.

The main objectives are to reduce supply pressure, increase TVL in strategies, provide additional utility for ABRA as a governance and profit-generating token, reboot the referral program, and align ve-lockers' incentives with the project's growth.

Overall, the proposal aims to adapt Cadabra's tokenomics to the current market conditions, attract more liquidity, and create a self-reinforcing loop of demand for ABRA, higher yields, and increased TVL.

FULL TEXT OF THE PROPOSAL: https://cadabra.gitbook.io/home/tokenomic/proposals/cadabra-improvement-proposal-1