KIP-9: Protocol Maturation and APY Alignment

Summary Adjust reward rate to 0.312%, translating to a 6.2% 5 day ROI, and 8,000% APY, to align with policy priorities and expectations from the community, as well as ensure optimal protocol development. Empower the Policy team to correct the reward rate when realized APY deviates significantly from the current target APY, ensuring alignment with expectations as laid out in KIP-3 and ongoing reward rate adjustment KIPs.

Proposal

In an effort to set proper expansion expectations and remain aligned with the framework approved in KIP-3, the Policy team proposes:

Adjusting the reward rate from 0.417% to 0.312% to an estimated 6.2% 5 day ROI or ~8000% APY.

This is equivalent to: 1.1) A 0.35% Daily Reduction. 1.2) A 1.87% Weekly Reduction. 1.3) 13 more days to double your sKLIMA balance.

Allow the Policy team to unilaterally execute minor reward rate corrections outlined by the following criteria:

Using the same calculation assumptions as the last approved KIP over the previous 7 day average:

10% APY deviation (e.g a target of 8000% APY would be adjusted if the current APY was 7200% or 8800% APY) Any amount outside the target APY range for the current KIP-3 stage based on total supply. (e.g current APY of 4,000% when crossing into phase 3 at 10 million supply)

More information can be seen here: https://forum.klimadao.finance/d/17-kip-9-protocol-maturation-and-apy-alignment

Voting: The choices are as below:

Option 1) Reduce APY, and grant policy the ability to execute minor reward rate corrections Option 2) Reduce APY only Option 3) Against Option 4) Abstain