FIP005 RFV Dilution

Background: We have not received new bonding due to the price falling below backing. The impact of no bonding but continuous high staking APY will continue lowering the RFV per $FORT. As of this proposal, the RFV per $FORT is USD40.61.

Info: Every $FORT is backed by 1 DAI (There will always be 1 DAI for 1 FORT). The RFV of $FORT is the amount of stablecoins the treasury have per $FORT.

Goal: Our goal is to stop/reduce staking rewards so RFV per $FORT can increase via ongoing liquidity mining by treasury (Crystl/Tectonic/CRO).

We were able to afford a high APY thanks to our growth in bond and treasury. However, due to the rapidly deteriorating crypto market conditions, our bonding and treasury growth have completely stopped for weeks. The supply inflation of $FORT now comes from staking. If we were to let the $FORT supply expand without bonding, the market price will continue dropping drastically.

We believe that it is a good option to prevent further dilution to the RFV and allow market to realise the RFV of $FORT.

Future Plan: There is a new token (non-rebase, vesting-based) in development. The new token will earn multi-token reward. This new mechanism will allow tokens earned by Blackhole to be distributed. Stakers will earn tokens in the form of CRO/Stablecoins/Other coins (See Blackhole for tokens accumulated).

Proposal: stop/reduce reward rate to stop/slow decreasing RFV or to a fixed total supply of $FORT. For reduction, the team proposed an APY for RFV to gain net increment based on treasury liquidity mining rate (11 - 16%).

Please vote. Only one option can be selected. The option with the highest vote will be adopted.

Stop Staking Reward - 0% APY Reduce Staking Reward - ~10% APY No Change - keep on current course of slow drop in APY Fixed Total Supply Cap (40k FORT) - Estimated RFV = USD25 Fixed Total Supply Cap (50k FORT) - Estimated RFV = USD 20