Proposal: Lower rebase rewards from 0.5% to 0.4%

Given the latest turbulent price action the APY has spiked to over 2,200,000%.

This is not ideal and we've now reached a stage where we will have to reduce the rebase rewards (and thus the APY) to combat excessive rewards inflation.

Why lower the rebase rewards and APY?

While high APYs are usually the main selling point for OlympusDAO forks these days they need to be balanced.

Our goal with Euphoria has always been to err on the side of caution and to operate the protocol conservatively.

We've never been about billion percent APY:s or other crazy metrics.

0.5% -> 0.4% rebasing rewards

We believe it's time to dial down the APY and as such we propose to lower the rebase rewards from 0.5% to 0.4%.

When Euphoria started we launched with 0.3% rebasing rewards which was way too conservative.

We increased the rebase rewards to 0.5% shortly after launch to make the protocol more competitive and attractive to investors.

We've now reached a stage where the 0.5% rebase rewards have become way too inflationary and have created a situation where supply exceeds demand.

The current plan is as follows:

• Lower rebase rewards to 0.4% (similar to what Wonderland currently utilizes)
• If this is not enough, lower the rebase rewards to 0.3% to match the initial deployment settings. This will be a separate proposal, and will only be proposed if or when we need to.

Lowering the rebase rewards will allow us to extend the runway and improve the backing of each token.

Voting options

• YES: lower the rebase rewards and improve runway & backing
• NO: do not lower the rebase rewards