(OGP 7) - Structural Changes for Litter Box 2

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This is a governance proposal to;

1. Extend the final date of Litter Box 2,
2. Add manual users (Ethereum OGs, Other Protocols' founders, engineers) to Litter Box 2,
3. Lower the OI cap of the current markets,
4. Burn fees the protocol collects

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The aim of Litter Box is to stress test the protocol

Firstly, if the aim of Litter Box is to stress test the protocol, it should be flexible, too, naturally. As of November 18, only 18 new wallets have used the protocol since the launch of Litter Box 2. Considering it’s almost been a week since launch, and the total number of wallets which got distributed OVL; this number is unarguably at ‘very low’ level. In order to complete this ‘stress test’ successfully, it looks like we need to take some steps, other than waiting until the end of this Litter Box and launching another Litter Box on December 12.

Inviting Ethereum OGs and ‘frens’ from other protocols, one by one, manually

The reason behind the distribution of OVL being so ‘small’ is because this is not a ‘full’ launch. Since it’s not easy to convince people to use the protocol with no incentives, Overlay Foundation is distributing reward NFTs for those who use the protocol ‘intensely’. Considering gas fees of the Ethereum blockchain, it’s actually not a surprise that many eligible users are not participating in the Litter Box 2. Under this circumstance, what we could do is to invite volunteer DeFi OGs and other protocol founders, engineers, and contributors, manually. If this proposal passes, Overlay Foundation will start inviting those who could contribute to Overlay Protocol the most, and they are going to be able to participate in the Litter Box 2. To make it possible, considering the holidays, the current market condition, and adding new OG users manually, it’s also wise to extend the Litter Box 2 final date. If the proposal passes, Litter Box 2 final date will be delayed from around December 12 to around January 3. If technical work is not finished and if the general tendency is in favor of delaying, the period could extend a little more.

Burn all / Change smt (OI)

As of November 18, Overlay protocol has collected fees totaling ~256.36 OVL. Let’s just burn it all, and burn all the future fees until an opposite proposal passes. The protocol is also having a problem with OI caps. The OI caps on both markets (WBTC/USDC, WETH/USDC) are too high, considering the total number of OVL in circulation. If the proposal passes, OVL fee burn will start, and OI caps will be calibrated by Overlay Foundation, with technical help of Autonomy Inc.

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These are two options for this Snapshot:

1-Implement All Changes 2-Request Changes