Based on this CIP discussion from the forum, this proposal to vote on the following two items:

1. Transfer 12M COW from CoW DAO (0xca771eda0c70aa7d053ab1b25004559b918fe662) to the Solver Rewards safe (0xA03be496e67Ec29bC62F01a428683D7F9c204930) and

2. Modify the reward scheme from 100 COW per batch to 50 COW per batch + 35 COW per trade. The modification to reward scheme would be made for the accounting period beginning 2022-06-21 according to the implementation drafted here.

Based on a projected consumption rate of ~2M COW per month, the proposal to 12M COW is expected to fund the next 6 months of solver rewards. The modification to the reward scheme has been carefully chosen in a way that the the current average weekly issuance should remain as projected.

Motivation & Rationale

Rewarding external solver competition is crutial to the plan and aligned with the CoW DAO's goals for maximal decentralization of the protocol.

In the original proposal CIP-2: Solver Rewards, the rewards were specified as 100 COW tokens per batch. This was considered a reasonable first approach to reward distribution with limited complexity that could be quickly implemented and launched.

The data presented and discussion had in the forum post indicates that this current distribution scheme does not accurately capture the risk-reward ratio for solvers in certain curcumstances; For example

1. Failed Transaction Risk: Batches with many trades have higher likelyhood of reverting
2. Slippage Risk: High value trades are more likely to incur penalty due to slippage

While it remains to continue researching the topic of on the reward scheme incorporating slippage risk due to trade size, the proposed reconfiguration is an intermediary attempt to address failed transaction risk by shifting some of the reward toward the number of trades in the batch.

Transaction Details

Safe Tx Hash:

0x66cd06f2b35ba210d28b5709c9cef6af2e4fb8be95a3dcca89cc12d704d39a82

Hash can be verified here (item 12. getTransactionHash) with transaction data provided below:

Safe Transaction Data:

to: 0xDEf1CA1fb7FBcDC777520aa7f396b4E015F497aB
value: 0
data: 0xa9059cbb000000000000000000000000a03be496e67ec29bc62f01a428683d7f9c20493000000000000000000000000000000000000000000009ed194db19b238c000000
operation: 0
safeTxGas: 0
baseGas: 0
gasPrice: 0
gasToken: 0x0000000000000000000000000000000000000000
refundReceiver: 0x0000000000000000000000000000000000000000
nonce: 3

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