Emissions Restructuring for Year 2

Reasoning for Emissions change 

Considering forward looking emissions established at TGE, the veNEWO (formerly single sided staking) emissions are planned to run out on the 7th of December, 2022. We propose extending the emissions schedule for 52 more weeks with the following changes:

Clawback of NEWO allocated for Bonding 

• As outlined in the Bonding proposal, the target for POL was 90% of all liquidity available in our main USDC <> NEWO pair on SushiSwap. This entailed repurposing 17.7m NEWO in LP emissions for Bonding. 
  • Currently, the DAO holds 67% of the LP, requiring a total of $326,675 (19.2m NEWO) to reach the 90% target. 
  • We propose lowering the target to 85% of all outstanding liquidity on Ethereum, which will require a total of $250,000 (14.7m NEWO) allocated bonds, while using the delta of 3m NEWO to extend the veNEWO emissions. 
  • The Avalanche pair on Trader Joe would continue to operate as is with regard to emissions, but no bonds avaliable.

Repurposing the excess of the Airdrop allocation 

• Considering our analysis of the previous NEWO airdrop, this distribution mechanism showed to be highly inefficient. Only 25% of total eligible wallets have claimed the airdrop, leaving a large portion of NEWO in the distributor contract. Due to the immutable nature of the distributor contract the unclaimed tokens cannot be retrieved and are effectively burned. 
  • As part of the first Airdrop, 2% of total supply was previously allocated, leaving 3% un-allocated. We propose re-purposing the 30% of unallocated airdrop (1% of total supply) to further incentivize veNEWO lockers as we transition to a revenue generating treasury in 2023. While the rest of the un-allocated Airdrop (2%) be used as a dedicated DAO-to-DAO fund. This fund will be used to align with ecosystem partners and diversify treasury reserves. DAO swaps will be publicly announced and will be subject to governance procedures. 

New Emissions Schedule 

• The 2.8m NEWO clawback and 8m NEWO from the un-allocated Airdrop would be distributed to veNEWO and LP stakers with the following schedule:
  • 70% distributed to veNEWO and 30% distributed to LP stakers over weeks 53-60
    • LP stakers will be incentivized until the 85% POL target is reached, which is expected to happen at week 60. 
      • Note that weeks are counted since TGE at December 9th, 2021.
    • 100% distribution to veNEWO over weeks 60-103
  • Emissions would end at week 103, where we are expecting to fully sustain veNEWO via incubated project yield and strategic treasury management.