RexMarket subsidy extension

Background

This is a proposal to renew the $RIC "subsidies" (rewards) on the markets which currently have them, as well as reducing the rate of disbursement. The current subsidies are set to end on the 10th of January, and are currently set at a rate of 14'000 $RIC /month for each market.

The value of subsidies

The subsidies have done a huge work of bringing volumes to the markets. Volumes are currently growing fairly consistently, as more and more people are using the exchange. https://dune.xyz/mikeghen1/Ricochet-Exchange

However, much of this is likely "mercenary capital" and will probably leave if/when subsidies disappear.

Maintaining current traction

The current trends in growth of $RIC are incredible. They’ve brought in many people, and got the community engaged and growing day by day. Momentum is a powerful force, and cutting that momentum off by ruining the shape of the graph would be a mistake.

Buying time until V2 launch

Once V2 is live, Referrals will enable Ricochet to keep attracting new users at a good pace, bringing in new organic users, and reducing our reliance on mercenary capital.

A more user-friendly dashboard will also help in retaining less sophisticated users, and build up more user loyalty.

Overall, it’s safe to say that there are plans to reduce reliance on subsidies in the future. But these new tools aren’t ready yet.

Reducing subsidies slowly, not abruptly

This proposal would:

1. Authorize the Multisig to add the necessary funds to the 14 active Ricochet markets, timed to last until V2 is launched
2. Establish a new rate of emission, reducing it from 14’000 $RIC/month to AMOUNT $RIC/month for the first 3 weeks (up to Jan31)
3. Authorize the Multisig to apply the same rate to any new markets launched before V2

AMOUNT - to be decided by multiple choice vote. Vote ZERO if you don’t want subsidies renewed.

The highest voted non-zero option will be the winner, unless they cumulatively have fewer votes than the ZERO option.

Based on this calculation: RIC reward rate = (Target volume*2%)/RIC price If RIC price stays constant, then a 7k reward rate is a good incentive up to a volume of ±$500’000 /month on each market.

The current volume is ±$250’000/mo, so this should keep the subsidies’ effectiveness, and still allow a lot of room for volumes to grow.

**7000 is the proposer’s favourite option. **

What about V2?

This proposal is just meant as a stop-gap before V2, in order to keep volumes high as we transition to new contracts. Before V2 is launched, we urge the community to discuss and deliberate on what the new subsidies should look like.