Summary

This proposal introduces an update to the LISTA emission distribution model to the veLISTA holders. Other parts of emission (LPs & others) remain without changes. This proposal aims to enhance governance participation, strengthen ecosystem expansion, and grant veLISTA holders greater influence over emissions allocation. The proposed changes will modify the current LISTA emission pool by splitting it into two distinct parts:

1. veLISTA Holder Rewards – A portion will continue to be distributed directly to veLISTA holders, as in the current model.
2. Protocol-Bribed LP Incentives – The remaining portion of LISTA emissions will be used by the protocol to bribe key LP pools directly. veLISTA holders who vote for these pools will receive the rest of the emissions, allowing the community to strategically direct liquidity incentives.

This new system ensures that veLISTA holders play a direct role in guiding LISTA emissions, while also driving liquidity growth in key ecosystem pools through bribes and incentives.

Current Emission Model (Before Change)

Currently, veLISTA holders receive LISTA emissions through two sources: 1. LISTA emission pools 2. Protocol revenue used for LISTA buybacks - refer to LIP-016

While this rewards long-term holders, it does not encourage active participation in liquidity governance nor allow the protocol to strategically direct liquidity incentives.

Proposed Changes: New Emission Model

The LISTA emission pool will now be split into two structured components:

1. Base veLISTA Holder Distribution:

• A portion of emissions will continue to be distributed to all veLISTA holders, similar to the current system.
• This ensures that all governance participants receive a baseline level of LISTA emissions.

2. LP Voting Incentives & Protocol-Bribed Emissions:

• veLISTA holders who vote for LP pools will receive an additional share of LISTA emissions.
• The protocol will allocate the remaining part of these emissions to bribe specific LP pools, ensuring that veLISTA voters have a say in which pools receive extra incentives.
• The more a veLISTA holder actively participates in governance and votes for these specific LP pools, the greater their rewards.

This model aligns emissions with governance engagement and liquidity expansion, making Lista DAO more dynamic and community-driven.

Objectives & Benefits

1. Strengthening Governance Participation & Incentives The new emissions structure encourages more active participation in governance, rewarding veLISTA holders who engage in LP voting. Instead of passively receiving emissions, veLISTA holders now have a stronger incentive to contribute to the decision-making process, ensuring emissions are directed to the most impactful pools.

2. Expanding the Ecosystem & Enhancing veLISTA Influence By allowing veLISTA holders to vote on LP pool incentives, the ecosystem benefits from better liquidity distribution across strategically important pools. This aligns Lista DAO’s long-term vision of building a sustainable, decentralized DeFi ecosystem while granting users more influence over the protocol’s emission strategies.

3. Lista Pie Governance Expansion With Lista Pie raising its governance participation requirements, this proposal directly supports the initiative by giving users more control over emissions allocation. veLISTA holders who engage in governance voting will have a stronger voice in shaping Lista DAO’s future, reinforcing a more decentralized and community-driven protocol.

Voting & Implementation

• A Yes vote will approve the new emissions distribution model, allowing veLISTA holders to receive additional rewards by voting on LP incentives.
• A No vote will maintain the current system, where veLISTA holders receive emissions without the added LP voting incentive.

If approved, the new system will be implemented in the next emissions cycle, with clear guidelines on LP voting and emissions distribution.

This proposal enhances Lista DAO’s governance framework, creating a more dynamic and community-driven emissions model while strengthening LISTA’s long-term utility and ecosystem growth.