PIP #11 - Transitioning 50% of vePENDLE Voter Rewards to PNP

Abstract:

This proposal seeks to transition 50% of the vePENDLE voter rewards currently distributed in wETH to PNP tokens for vlPNP voters. The remaining 50% of the rewards will continue to be used for mPENDLE buyback & burn. This change aims to streamline reward mechanisms within our ecosystem, ensuring alignment with Penpie's operational goals and enhancing the intrinsic value of PNP tokens.

Motivation

Switching 50% of vePENDLE voter rewards from wETH to PNP is anticipated to positively impact PNP's market price and boost stakeholder engagement. By offering half of the rewards in PNP, we aim to incentivize long-term demand and strengthen the token's utility. This strategic move supports Penpie's stability and growth, ensuring that our reward systems align with our overall operational objectives.

Specification

Upon receiving wETH vePENDLE voter rewards at the end of each month, we will allocate 50% of these rewards to gradually buy back PNP tokens over the following 15 days. These PNP tokens will then be distributed to vlPNP holders, who can expect to receive their rewards around the middle of each month.

We ask vlPNP holders to vote on whether to approve this transition of 50% of vePENDLE voter rewards from wETH to PNP.