#LIP06: New Round of LVL Emissions Cut

MOTIVATION The price of LVL is stable at around $1 with daily fee revenues of around 20k$. Emission is still around 50k LVL daily which translates into negative cash flow that is approximately 2.5 times revenue.

To address this issue, we propose a further reduction in emissions to support the long-term growth and sustainability of the platform. LVL currently offers the highest real yield in the market (50-60% on average, without LVL incentives). Additionally, we wish to save LVL emissions for future incentive programs and planned cross-chain expansions, details of which will be released in our upcoming roadmap.

PROPOSAL To achieve this, we propose the following changes to the emission of LVL:

1: Liquidity Providers:

• Senior Tranche: 6,000 LVL per day => 1,800 LVL per day
• Mezzanine Tranche: 10,000 LVL per day => 3,000 LVL per day
• Junior Tranche: 8,000 LVL per day => 2,200 LVL per day
• LVL/BNB: 10,000 LVL per day => 3,000 LVL per day

2: Loyalty Program:

• 16,000 LVL per day

3: DAO Reserve:

• 210,000 LVL weekly => 70,000 LVL weekly

This proposal is available for voting on January 27 and will last for 24 hours. If it passes, it will be implemented on January 28 at 3PM UTC.

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

YES - Agree with the proposed changes. NO - Take no action.

ELIGIBILITY Only LGO token holders are eligible to vote.