[EXAIP-06] Increasing the esEXA Reserve

• Proposal ID: EXAIP-06
• Proposer: Exactly Core Team
• Date: December 18, 2023.

Summary

This proposal seeks to increase the Reserve factor for EscrowedEXA (esEXA) from 15% to 25%. The adjustment is designed to enhance the protocol's financial stability and safeguard the interests of our long-term community members.

Background

It has been almost two months since we launched esEXA to transition to a more stable rewards system.

The idea behind esEXA is to provide rewards equivalent to EXA but with a linear vesting period, gradually releasing EXA tokens, ensuring that the Exactly protocol remains sustainable and rewarding for long-term community members.

Under the current mechanism, EXA holders burn their esEXA tokens to initiate the 12-month vesting period and convert them into EXA tokens through Sablier. To initiate the vesting process, users must reserve a portion of their EXA tokens as a reserve, with the reserve amount being a percentage of the total vesting amount. Initially, the reserve percentage was set at 15%.

Users can cancel the vesting at their discretion, triggering the withdrawal of all vested EXA tokens from Sablier and the associated reserve. Any unvested tokens are returned to the corresponding user.

Proposal

This proposal aims to increase the Reserve factor from 15% to 25%. By doing so, we intend to bolster Exactly Protocol's financial resilience.

Conclusion

By increasing the EscrowedEXA Reserve factor from 15% to 25%, we aim to fortify the protocol's financial foundations provide lasting benefits, and safeguard the interests of our long-term community members.

We appreciate your support and participation in this important decision for the future of Exactly Protocol.