Redirect Emissions to OIympus Pro Bonding

Reasoning for Emissions change

As we are approaching the end of our bootstrapping phase and are rolling out a restructured utility model through veNEWO, a change to NEWO emissions is warranted. Current NEWO LP emissions are exaggerated and are a source of large selling pressure, thus we propose redirecting emissions to accommodate a transition to sustainable and mature operations.

Proposed Change

The proposed emissions change will reduce the allocation to liquidity incentives and repurpose the difference to a bonding program with Olympus Pro. It is important to note that overall token emissions do not change and will follow the same emissions schedule. Also, single-sided staking emissions will not be changed and will instead transition to veNEWO locking rewards once the vote-escrowed model is introduced. The reduction to liquidity incentives will be paired with monthly bond programs that would match the reduction, effectively causing no change to overall protocol emissions. The change will allow New Order to accumulate protocol-owned-liquidity, resulting in stable liquidity provision with no change to long-term protocol emissions. Issued bonds will be reviewed on a monthly basis to accommodate the market changes in New Order’s token price and market cap. Several metrics such as liquidity and market cap will be used to gauge the necessity of continued bonding programs. Once the targeted POL is accumulated and ample liquidity is supplied on the market, the excess of NEWO initially allocated for emissions will be repurposed to a 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.

Existing Liquidity Providers

Current liquidity providers will be able to ‘sell’ their LP position for NEWO at a discount and will then have the ability to lock for veNEWO. This change will allow for a swift transition to a healthy emission schedule that will be based on holder conviction curated by the vote escrow model. If supported by the community, the LP emissions reduction will begin on the 20th of June and will continue running until the protocol obtains 90% POL. If more liquidity is necessary to accommodate protocol growth, new bonding programs would be enabled to ensure ample liquidity for NEWO. The reduction schedule can be viewed here.