#LIP08: Balancing Rewards

MOTIVATION In addition to many quality of life improvements, protocol security upgrades, and new DAO/Treasury features being added, the team has stuck to a rigorous development schedule. We’ve kept pace with perhaps one of the most ambitious roadmap within the existing DeFi ecosystem, shipping completed modules on a weekly basis.

The team has also been working on a substantial Level 1.5 update that (should it obtain the approval of the DAO), bring additional utility to LVL tokens, materially improve accessibility to the platform, and offer real-time participation to both the revenue stream of the Treasury as well as long term success of the project. More details will follow in a subsequent proposal in the coming two weeks.

In the meantime, please support the emission re-balance below. The purpose is simple: bring platform rewards roughly in line with the economics generated during the period.

P.S. If you don’t plan to contribute to the success of the project, don’t forget to redeem your LGO starting tomorrow. We’re also eliminating the 10 day cool down period for any LVL staked into the Governance pool on 20th Feb. Feel free to disembark at any point. After this stop; we’re strapping on the boosters.

PROPOSAL 1: Reduction in daily emission of LVL from 26,000 to 19,000 LVL per day:

• Liquidity Providers: Senior Tranche: 1,800 LVL per day => 500 LVL per day Mezzanine Tranche: 3,000 LVL per day => 1000 LVL per day Junior Tranche: 2,200 LVL per day => 500 LVL per day LVL/BNB: 3,000 LVL per day => 1000 LVL per day

• Loyalty Program: 16,000 LVL per day = 16,000 LVL per day, no change

2: All LVL rewards will be claimable to wallets instead of being staked

3: If passed, the changes will be in effect on 10 Feb 2023, 2PM UTC

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

YES - Agree with the proposals. NO - Take no action.

ELIGIBILITY Only LGO token holders are eligible to vote.