Proposal To End App $RARI Rewards

This is a proposal to cease the distribution of weekly $RARI rewards to applications building on the protocol starting January 1st.

Currently, there are 41,250 $RARI tokens being distributed weekly to applications building on the protocol, equivalent to over $600,000 USD, mainly to artists and collectors on Rarible.com. Although this was a great way to bootstrap buying and selling on Rarible.com in 2020, this rewards mechanism is no longer an effective tool. Wash trading is a rampant problem, but ultimately, it is a poor allocation of resources. In addition, a huge portion of $RARI recipients actually sell their $RARI following the drop, which has negative pressure on the $RARI price.

As we transition to funding more projects (see proposal here: https://snapshot.org/#/rarible.eth/proposal/0x746c0273412457015d0ac74179ba0a316aa8adfcd3b4e35a009bbd81b2840a3f), we need to start thinking about the best use of $RARI, such that our token economy doesn’t get crippled.

Onwards, and upwards, frens.