Summary

We propose to transfer 15M NOTE tokens from Notional's Governor Alpha contract to Notional's proxy contract. This transfer is necessary to ensure that the Notional proxy contract holds a sufficient amount of NOTE tokens to pay incentives to Notional LPs for the foreseeable future. This proposal has no direct impact on NOTE token holders and is purely operational.

The Notional proxy contract currently holds 4.5M NOTE tokens. Given the proposed transfer, the proxy contract would hold 19.5M NOTE.

The current nToken incentive rate is 13M NOTE per year. Thus the proxy contract would hold a sufficient amount of NOTE incentives for at least 1.5 years at the current pace. Let's note that we also plan to continue to decrease the amount of NOTE incentives given to nToken holders over time as nToken organic yields increase. Therefore the proxy contract will hold enough incentives for more than 1.5 years of operation.