MIP #4 - Proposal for MGP Emission Reduction and Reallocation

Proposal for MGP Emission Reduction and Reallocation.

Abstract

Magpie is a yield-boosting platform that allows users to earn passive income by depositing their assets as liquidity providers. The main purpose of Magpie is to lock WOM tokens as veWOM on Wombat Exchange in order to earn and share increased WOM revenue and to access voting power. The platform utilizes the MGP token for governance and revenue-sharing, and users can lock their MGP tokens to access these benefits. This proposal suggests decreasing the MGP emission rate on Magpie and reallocating a percentage of it into the mWOM pool to further incentivize WOM conversions into mWOM on Magpie and align the MGP weight of the other pools to match the updated allocation weight of the Wombat pools to maximize the value and sustainability of MGP. Also, is proposed to stop the emission of MGP for the WOM and mWOM pool on Wombat to use it as bribes.

Motivation

For Magpie, it is important to accumulate veWOM on Wombat Exchange in order to offer maximized benefits for users on the platform. The proposed changes aim to increase user participation and support for Magpie by decreasing the MGP emission rate on Magpie’s pools and simultaneously increasing MGP rewards for mWOM stakers. By decreasing overall MGP emissions we continue to support the long-term sustainability and value of MGP. mWOM stakers will be more highly regarded for their contributions to maximizing the platform’s functionality. This action will enable users to earn higher WOM rewards for depositing their assets on Magpie. By incentivizing users that support the core mechanism of Magpie, we ensure the protocol’s efficiency. Now that the mWOM and WOM liquidity pool on Wombat can earn WOM rewards, we aim to use the MGP emission to bribe voters and get higher WOM rewards for WOM/mWOM liquidity providers. This will ultimately provide more benefits to users and increase the value of MGP moving forward.

Specification

Change MGP emissions on Magpie

• Decrease MGP emissions per second from 3.0 to 2.0
• Increase the mWOM weight for MGP rewards from 280 to 500
• Align the weight of the other pools to match the updated allocation weight of the Wombat pools

Change MGP emissions on Wombat

• Stop MGP emission to WOM/mWOM pool instead use the emission as bribes
• Bribes to WOM Pool: 0.075 MGP/sec
• Bribes to mWOM Pool: 0.375 MGP/sec

Here is current MGP emission allocation:

https://docs.magpiexyz.io/mgp-token/mgp-emission