Summary

This proposal seeks to enhance Lista DAO’s revenue redistribution mechanism by allocating 40% of weekly revenue for permanent locking, and the remaining 60% will be mostly directed towards veLISTA holders, with a small portion going to operating expenses. The locked portion will be auto-locked and auto-compounded for 52 weeks perpetually, incentivizing long-term participation and supporting sustainable protocol growth. By permanently locking LISTA tokens, we are perpetually reducing the supply of LISTA through buy backs and reduction in emissions, hence increasing the price of LISTA tokens.

To ensure a smooth transition, the introduction of the 40% allocation for locking will not happen immediately. Instead, it will be implemented gradually, with no more than a 10% change in allocation per week. This gradual adjustment means the full implementation will take a minimum of 4 weeks.

References

1. Current Revenue Redistribution Model: a. In our previous proposal, we specified that more than 50% of our weekly revenue will go towards veLISTA holders.
2. Proposed Change: a. 40% of the revenue will now be used to buy back LISTA, where it will be locked for 52 weeks perpetually through our auto-locking and auto-compounding features. b. For the remaining 60%, most of it will continue to be distributed to veLISTA holders, while the rest will be used for operational expenses. c. Implementation of this change will be a gradual process, increasing no more than 10% weekly until it reaches the target of 40%.

Abstract

The enhanced redistribution mechanism aims to optimize revenue allocation by striking a balance between operational costs, veLISTA rewards and permanent locking, whereas the permanent locking initiative seeks for long-term growth.

Key changes include:

1. Weekly locking of 40% of buy-back LISTA for 52 weeks in perpetuity through our auto locking mechanism. Auto compounding will also be turned on, which means that the rewards that Lista DAO receives for locking LISTA will also be perpetually locked up.
2. Continued distribution of 60% of buy-back LISTA, which will mostly be directed towards veLISTA holders.

This proposal ensures sustainability while maintaining a steady reward flow to veLISTA holders, aligning incentives with the protocol’s long-term success.

Motivation

1. Sustainability and Growth: By permanently locking LISTA tokens, we are perpetually reducing the supply of LISTA through buy backs and reduction in emissions, hence increasing the price of LISTA tokens.
2. Incentivizing Commitment: The locking mechanism encourages participants to remain engaged with the protocol for extended periods, aligning their incentives with its growth.
3. Improved Protocol Efficiency: This model ensures that both short-term rewards and long-term growth objectives are addressed, creating a balanced ecosystem for all stakeholders.

Specification

1. Revenue Redistribution: a. 40% of the revenue buyback for LISTA will be locked permanently b. For the remaining 60%, most of it will continue to be distributed to veLISTA holders, while the rest will be used for operational expenses.
2. Gradual Transition to 40% Locking: a. The locking allocation will start at 10% of the total revenue in the first week. b. It will increase by no more than 10% each subsequent week until it reaches 40%. c. The full implementation will take a minimum of 4 weeks.
3. Weekly Locking Process: a. Auto-lock and auto-compound mechanisms are applied to maximize returns.

Benefits (Pros):

1. Enhanced Sustainability: Encourages long-term commitment and strengthens protocol resilience.
2. Balanced Incentives: Combines immediate rewards for veLISTA holders with long-term value accrual.
3. Smooth Transition: Gradual implementation minimizes disruption and allows time for adjustment.
4. Improved Transparency: Enhanced reporting ensures accountability and community oversight.

Voting Options

YES: Approve the enhanced revenue redistribution plan with 40% permanent locking, 60% veLISTA distribution, and a minimum of 4 weeks gradual transition period.

NO: Retain the current revenue redistribution model without permanent locking.