EQUIP-4: Proposal for the Upgrade of the Referral Mining Algorithm and Increasing the proportion of Liquidity Mining

Motivation

The purpose of upgrading the Referral Mining algorithm is to encourage EFC Members to focus more on promoting trading users, aiming to increase the market share of the protocol further. To maintain compatibility with EQUIP-2, the Position Mining Coefficient for invitees has been introduced. Increasing the proportion of Liquidity Mining is aimed at enhancing the overall liquidity of the protocol.

Specification

The upgrade to the Referral Mining algorithm is twofold: Firstly, the basis for rewards will be adjusted. Instead of rewarding based on the ratio of the invitees' positions and liquidity, rewards will now be based solely on the ratio of the invitees' total positions. Secondly, the Position Mining Coefficient for invitees has been introduced.

The specific formula is as follows: Referral Mining Rewards (per unit time) = Σ(Invitee's Position Size * Invitee's Position Mining Coefficient) / (Total Position Size * Avg. Position Mining Coefficient) * Per Unit Emissions

Regarding the daily mining distribution, the proportion of Liquidity Mining will be increased to 10.8%, and the proportion of Referral Mining will be correspondingly reduced. The adjusted proportions are as follows:

Voting for EQUIP-4:

The vote on this proposal is scheduled to begin at 13:00 UTC on December 8, 2023, and will last for two days.