LIP👊2: One year yield extension

1. Proposal Number & Name

LIP#2 - One year yield extension

2. Keywords

Hold, yield extension

3. Simple Summary

Propose to vote extending, or not, the passive yield for Luchadores NFT owners by 1 year.

4. Context

LUCHA yield for Luchadores NFT owners was launched on December 24th, 2021. Owners of Luchadores NFT accrue a LUCHA yield continuously based on their holdings and can claim anytime on the Luchadores website yield page.

During the first year of the yield, up to 6.18% of the total supply has been allocated to Luchadores owners through this mechanism. Depending on the rarity of the Luchador (determined by Chainlink VRF determined during the mint), Luchadores owner accrue daily yield ranging from 1 to 10 LUCHA per Luchadores.

The LUCHA tokens are allocated to relevant users, but only minted when they are claimed. With the current distribution, 93.82% of all LUCHA tokens remain available for P&E

After several years, once the full supply will have been minted and earned by players through the P2E, rewards.luchadores.eth will become the new reward pool. This wallet receives 90% of the LUCHA spent in the game (the remaining 10% are evenly split between the treasury & team)

5. Goals

The goal of this proposal is to suggest a path securing continued rewards for Luchadores holders, at least up to the availability of the Play & Earn. Extending the yield will also help increase LUCHA liquidity to prepare the economic stimulus to come next year.:

• Luchadores on the in-house Marketplace
• Arenas auctions
• Tournaments
• Rental
• Revised LUCHA staking model
• Improved LUCHA liquidity strategy

6. Means

This proposal does not change the total supply of LUCHA, only its allocation.

The revised allocation unlock up to an additional 6.18% of the LUCHA supply, to be distributed to Luchadores owners over December 24, 2022 - December 24, 2023 period.

7. Metrics

The introduction of LUCHA and first year of yield was a resounding success: it marked the discovery of many DeFi-related mechanisms by Luchadores community members. The initial liquidity mining efforts help secured a baseline of liquidity, further cemented by the Protocol Owned Liquidity acquired in the wake of the first piñata.

Also, keep in mind that not all allocated LUCHA are claimed. To date around 52% LUCHA are claimed (~ 3M). Dydymoon was suggesting that the community could consider "clawing back" the unclaimed LUCHA tokens - to be discussed in an upcoming proposal if there is interest.

8. Forward-thinking considerations

If ✅ Yay wins: Nothing changes: the yield keep going for another year. A part of LUCHA issued goes to the holders, remaining to the players and renters once the play & earn is launched!

If ❌ Nae wins:

No more reward until the release of play & earn.

Note: Both choices pretty much call for the community to collectively decide what to do with the unclaimed LUCHA tokens.

9. Implementation overview

Owners continue to earn passive yield until 24th December 2023.

10. Voting options

Voting options will be:

1. ✅ Yay
2. ❌ Nae
3. 🥃 Abstain