#004 LIP: Loyalty Program Emission

MOTIVATION On January 15th, the DAO passed a vote on updating the daily LVL emissions in order to sustain the platform’s economic growth.

At that time, our internal calculation on LVL emissions for the Loyalty Program was:

• With an average price of 0.70$ per LVL, 36k LVL in daily rewards for traders amounted to $25k
• With an average trading volume of 20m$ daily, the platform generated around 20k$ daily in fees and with room for further growth.

However, the protocol growth has been extremely positive since, with LVL price reaching an all-time high of 1.8$. This translates to 65k$ in daily rewards for the Loyalty program.

With daily trading volumes following this growth profile, and while we expect more growth ahead, the price appreciation is putting somewhat pressure on the platform’s economic sustainability.

PROPOSAL We propose reducing the Loyalty Program incentives from 36k LVL to 16k LVL per day. With this updated allocation we are confident to continue attracting traders to our platform while preserving overall economic health at the same time.

We also recently launched the Referral Program which complements our strategy of onboarding more users to LEVEL. More incentive programs will follow. We are excited to establish ourselves as the premier derivatives trading venue on BNB Chain.

If the proposal gets approved, the update will be implemented effectively on Monday, January 23.

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

YES - Agree with the changes NO - Keep the current emission

ELIGIBILITY Only LGO token holders are eligible to vote.