MIP #58 - Proposal to Reduce MGP Emission to Wompie by 50% on BNB Chain and Arbitrum

Abstract:

This proposal aims to reduce MGP emissions to Wompie by 50% on the BNB Chain and Arbitrum networks. The proposed new emission rates are 0.0189 MGP per second for the BNB Chain and 0.0162 MGP per second for Arbitrum. This adjustment ensures sustainable yields and optimizes the token's value proposition while preserving MGP's long-term utility.

Motivation:

To sustain a balanced ecosystem and preserve the value of MGP, a strategic reduction in emissions is necessary. High emission rates risk diluting MGP’s value, undermining its utility as a governance and incentive token. By lowering emissions, we aim to preserve token scarcity, enhance market confidence, and stabilize yields for stakeholders. This adjustment aligns with Magpie’s strategic objectives of maintaining the long-term value and utility of MGP while optimizing returns for its community.

Specification:

Reduce MGP emissions to Wompie by 50%, setting new rates at:

• BNB Chain: 0.0189 MGP per second.
• Arbitrum: 0.0162 MGP per second.