Layer 1 Emissions Reduction

Summary: Progressively phase-down Layer 1 emissions.

Motivation: This proposal is in line with the proposal passed on November 29th (https://gov.premia.finance/#/proposal/0xcdbe55cd5875b4b0c91a5e69c73408f3acbc61cc2ce5fe45866d33a07fbba359) and the "accelerate rewards phaseout" to occur after a review of data from both chains.

The data has shown that activity has heavily favored Arbitrum over L1 (20 to 1), therefor it would be appropriate to phase out the accelerate rewards through L1 and to maintain emissions on Aribtrum.

Abstract: Currently, Premia's emissions are being evenly distributed between L1 and Arbitrum at a rate of 0.375 PREMIA per block (0.75 PREMIA per block total between both). L1 not only has half of the TVL, but close to 95% of all options have been purchased on Arbitrum. Prior to the Arbitrum deployment, the emission rate was set to 0.5 PREMIA per block to incentivize liquidity providers on the L1 system. The additional 0.25 PREMIA was temporary to stimulate L2 activity while not disincentivizing LP's on L1. The market has shown that Arbitrum is the preferred network (for the time being) to utilize the Premia platform and the incentives should align with the data.

Proposal: Immediately after a passing vote, reduce L1 emissions to 0.25 (a 33% reduction) PREMIA per block.

This emission rate would continue for 1 month before L1 emissions drop to 0.125. At this point overall emissions will be back to the target emissions rate of 0.5 with 0.375 going to Arbitrum and 0.125 going to L1.

NOTE: Rather than completely phasing out emissions on L1, we would maintain emissions, albeit at a reduced rate, to ensure there is liquidity for potential future partnerships that would require the L1 version of the platform.

For - Pass Against - Fail