Vault logic update, transaction tax increase and staking pool restructuring

After three out of six proposals put up for discussion have met 90% or more agreement on Discord's #dao-talks (https://discord.gg/dCgpSu8b), it is now time to put the first steps into motion and have these approved by the entire DAO.

THE CHANGES IN SHORT:

1 - 5% of non-minted vault profits (REVA that is being bought back from the market) are now burned.

2 - Transaction tax increase from 0.25% to 0.5%.

3 - REVA staking pool lock timers are changed to: 7 days (1x), 14 days (2x), 45 days (3x) and 180 days (4x).

4 - REVA staking pool reward distribution is changed to: 3% (1x), 8% (2x), 26% (3x) and 63% (4x).

BACKGROUND & GOALS IN SHORT: There is a solid amount of sell pressure on the token price coming from vaults, this was confirmed by data. Vault users also currently only give back about 0.34% of their total profits in REVA to burn/stakers/LPs/treasury. The rest is often sold to the market and therefore reduces the price. 70% of their REVA profits come from newly minted REVA. This is pure inflation and the platform receives nothing back.

At the same time even stakers have begun to sell their profits, because they lose trust seeing the price decrease. Staking pool lock times and reward distribution currently make it almost meaningless which pool is chosen. The commitment to the token and the appreciation of that commitment with higher rewards for higher lock times is not well-represented currently.

The goals are:

• to reduce sell pressure from vault users
• give more value back to the platform
• reduce inflation,
• clarify the commitment required to stake in the different staking pools and
• emphasize the value the different lock times have for the platform and its community.

To achieve these goals:

• the amount of minted REVA given to vault users needs to be reduced and controlled. This is already being worked on separately and not part of this proposal.
• The portion of the vault profits going back to the platform needs to be 10x'd from 0.34% to about 3.4%. This proposal would provide roughly a 5x, the other portion comes with emission reduction overall. This will be a separate proposal.
• Increase the overall length of lock times, but also make the differences between the staking pools more clear. There is a short-term, medium-term and long-term option. Each of them have clearly distinct value to the platform and will be rewarded appropriately.
• The 1x pool is effectively made useless, but these changes are necessary for the following proposal that helps control vault rewards in REVA.

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Below is a more thorough explanation of what is happening and why for those wanting to understand better.

[1] - Vault logic update | 5% of vault profits are burned

CURRENT STATE OF VAULT LOGIC: A vault user locks a token in a vault. If they choose a vault that pays its rewards in the deployed token (ex. CAKE) and the vault's native token (ex. BUNNY), three things happen on harvest/withdrawal:

1. All of the native token is exchanged for REVA on the market and is sent to the user.
2. 30% of the deployed token profits are exchanged for REVA on the market and are sent to the user.
3. 1% of the deployed token profits is exchanged for REVA on the market and is sent to the staking pools.

If they choose a vault that pays its rewards in a second foreign token (ex. QUBIT) and the vault's native token (ex. BUNNY), on harvest/withdrawal those two are exchanged for REVA and sent to the user. There is no 1% to stakers.

PROPOSED CHANGE TO THE VAULT LOGIC:

• 5% of the vault profits (so excluding minted REVA) is burned.

Note: Burning is the best option to benefit everybody equally, since it takes the REVA out of circulation and it can never be used to depreciate the price again. This also reduces inflation and will increase the token's value very long term.

[2] Transaction tax increase | Tax are increased to 0.5%

CURRENT STATE OF TRANSACTION TAXES: Every transaction made with REVA infers a 0.25% fee, which is equally distributed between burn, stakers, LPs and treasury. Almost any regular user will barely notice this transaction. The users affected the most would be those transacting REVA very frequently (such as day traders - which Revault currently has little of - and vault users harvesting and selling daily).

PROPOSED CHANGE TO TRANSACTION TAXES:

• Transaction tax is increased from 0.25% to 0.5%.

[3] Staking pool timer increase and redistribution of rewards

CURRENT STATE OF STAKING POOLS: Staking in the 1x pool with no lock timer (no commitment at all) gives 70% APR. The lock times of the pools are relatively close to each other. Even closer are their returns, to the point where it makes almost no sense to commit to a month (3x pool) for a 2% greater share of the rewards compared to committing for 7 days (2x pool).

20% of the REVA emissions per block go to stakers. This is further divided between the pools as follows:

Current distribution of staking rewards:

1x pool: 10% 2x pool: 20% 3x pool: 30% 4x pool: 40%

You need to share your rewards with the other people in your pool, meaning the more REVA is staked in a pool, the less of the reward you get. Because of how REVA is currently distributed among pools, the individual actually gets these APR percentages in relation:

1x pool: 16% 2x pool: 25% 3x pool: 27% 4x pool: 32%

The appreciation by the community for the bigger pool rewards is already significant, which is why individually people receive much less of the overall pie in 3x and 4x pools than the staking pools as such are receiving.

PROPOSED CHANGE TO STAKING POOLS: The pool lock times increase as follows:

1x pool: no lock -> 7 days 2x pool: 7 days -> 14 days 3x pool: 30 days -> 45 days 4x pool: 90 days -> 180 days

The reward distribution is changed as follows:

1x pool: 3% 2x pool: 8% 3x pool: 26% 4x pool: 63%

As we want people to become long-term holders, the differentiation between the pools should become clearer in reality.

• 1x is being more or less deprecated and prepared for the upcoming proposal on it.
• 2x is for short-term commitment for people who are not sure about the protocol and want to leave relatively quickly if necessary.
• 3x is for mid-term commitment - see where it is headed for a medium amount of time before making further decisions on how to proceed with their investment in the protocol.
• 4x is for long-term investors who came to stay. They receive the most appreciation for their support and therefore clearly the highest reward.

Current stakers will not be forced to lock their REVA for longer automatically. The details will be worked out by the team.