EQUIP-2: Proposal for Implementing a Time-Diminishing Position Mining Coefficient

Abstract

This proposal introduces a Time-Diminishing Position Mining Coefficient designed to award greater rewards to users who open new positions while still accommodating long-term position holders, thereby enhancing the attractiveness for new users and promoting the long-term healthy growth of the protocol.

Motivation

Position mining aims to reward EQU to early traders of the Equation protocol, allowing them to share in the protocol’s growth. Currently, position mining rewards are distributed solely based on the proportion of positions held by users. As the overall size of positions increases, the incentives for users opening new positions become increasingly smaller.

This proposal aims to increase the incentives for users opening new positions while ensuring that long-term position holders continue to receive ongoing rewards.

Specification

Thus,

Position Mining Rewards (per unit time) = Position Size * Position Mining Coefficient / Σ(Position Size * Position Mining Coefficient) * Per Unit Emissions

Voting for EQUIP-2:

The vote on this proposal is scheduled to start at 10:00 UTC on November 21, 2023, and will last for two days.