CIP #7 - Modify the behavior of CVG rewards distribution

—- Summary -—

Modify the way CVG rewards are distributed, to replicate industry standards.

—- Rationale -—

Currently, the CVG distribution works the following way:

• CVG are distributed according to gauge weights when Cycle rollovers occur.

Example:

• For Cycle N, CVG rewards are distributed according to gauge weights at the rollover from Cycle N-1 to N.

The issue with this design is that it brings poor predictability to both LP and vote incentives providers, as gauge weights can be modified just before a Cycle rollover.

We propose the following implementation:

• Distributing CVG rewards for the Cycle N rollover, according to gauge weights at Cycle N-1 rollover.

This design will align Convergence’s behavior with industry standards, and bring more predictability to both LPs and vote incentives issuers.

🚨 Important to consider: if we implement this modification, CVG rewards will be the same for the next 2 Cycles following the implementation.

The modification is ready to be pushed into production.

—- Means -—

Modify the logic of the CVG rewards distribution contract.

—- Vote -—

1- Adopt the proposal; 2- Reject the proposal; 3- Abstain; 4- Do not take part in the vote.