Rewards Emission Mechanism Update

INTRODUCTION As part of our efforts to promote sustainability, we want to update the LVL reward emission mechanism for liquidity providers in LEVEL trading pools.

PROPOSAL Currently, all LVL farming rewards for LEVEL liquidity providers in Senior, Mezzanine and Junior Tranches can be claimed immediately. This is a proposal to update the reward emission mechanism where these rewards will be automatically staked in the LEVEL DAO staking contract, which has a 10-day unstaking period (also known as a "cooldown period").

With the update, since all LVL rewards for liquidity providers are staked in the LEVEL DAO contract for at least 10 days, they will also earn LGO tokens during that period. By holding the LGO token, they can also participate in DAO proposals and voting, and gain exposure to the DAO Treasury.

ACTION If this proposal passes, the Level dev team will prepare migration to a new farming contract. Current LEVEL LPs will have to unstake their Senior LLP, Mezzanine LLP, Junior LLP tokens from the current farming contract and stake them in the new farming contract. Besides paying the gas fee for unstaking and then staking again, there is no other cost for users.

VOTING OPTIONS Choose one of the following options to vote on:

YES to Rewards Emission Mechanism Update NO to Rewards Emission Mechanism Update ELIGIBILITY Only LGO token holders are eligible to vote.