#2 More economically-focused LVL emission

MOTIVATION

First of all, the protocol is currently generating about 7k$ trading fees daily. The initial bear market estimate of 100k LVL emission is unsustainable under the current environment. At the time of this proposal, LVL is at $0.8. An emission schedule that is 11 times revenue is unsustainable. As the project aims to build a sustainable liquidity marketplace for the community in the long run, it is critical that economics are adjusted accordingly.

Therefore, incentives for LVL/BNB liquidity and Tranches liquidity should be shifted toward trading incentives. As a liquidity center, the LEVEL platform needs to be radically focused on delivering the best trading experience for its underlying users.

Next, as a decentralized trading platform, the community’s involvement is crucial to the future of the platform. Furthermore, the DAO Treasury should also reflect its holdings of LVL tokens in the same way BTC, ETH, BUSD, CAKE, and BNB balances are currently reflected. We propose a motion to have the LVL balance owned by the community to also be reflected in the Treasury balance tab. Under the existing distribution scheme, 50% of accrued rewards are shared with the DAO. As such this should also include the native token rewards earned from interactions with the protocol. We propose a motion to implement the same rewards-sharing structure to include LVL tokens in the DAO treasury.

PROPOSAL

We would like to change the emission of LVL as below:

1: LVL rewards for Liquidity Providers: Senior Tranche: 12,000 LVL per day => 6,000 LVL per day Mezzanine Tranche: 20,000 LVL per day => 10,000 LVL per day Junior Tranche: 16,000 LVL per day =>8,000 LVL per day LVL/BNB: 32,000 LVL per day => 10,000 LVL per day

2: LVL rewards for Trading: Loyalty Program: 20,000 LVL per day => 36,000 LVL per day

3: LVL rewards to Level DAO: 30,000 LVL per day which will be deposited directly to Treasury on a weekly basis (210,000 LVL per week). As with fees accrued via contract interactions with the Level protocol, the DAO should have been accruing LVL in the same fashion fees have been accumulated. In the spirit of transparency, we would like to include LVL in the Treasury display tab in addition to BTC, ETH, BNB, BUSD, and CAKE. Going forward, the LVL balance will be updated daily based on the current emission schedule. Level DAO can use these LVL tokens for multiple purposes including fundraising for protocol operations.

4: All LVL rewards will go directly to LGO staking, except rewards for LVL/BNB LP and Level DAO. See previous DAO proposal #1 for a background story on this matter.

VOTING OPTIONS

Choose one of the following options to vote on:

1. YES - Agree with the changes
2. NO - Keep the current allocation

ELIGIBILITY

Only LGO token holders are eligible to vote.