SIP-011: Reduce reward rate to increase runway and achieve sustainable growth.

Background: About a month ago we boosted the staking reward rate to above market average. Our reward rate has been persistently higher than most of other rebase protocols.

reward rate comparison: SPA: 0.7288% Time: 0.6145% Ohm: 0.3950%

Our goal is to grow SPA supply in a long run with (3, 3), minting SPA via bonding and emitting SPA rewards via staking. It is important to maintain the balance of the two to ensure our protocols stay healthy.

We were able to afford a high APY thanks to our growth in bond and treasury. However, due to the rapidly deteriorating crypto market conditions, our bonding and treasury growth have slowed down. The current supply inflation of SPA now comes mostly from staking. If we were to let the SPA supply expand without sufficient bonding, the market price will tank.

We believe that it is a prudent consideration to reduce reward rate and improve runway to ensure Spartacus DAO is sustainable in the long run.

For our community to further understand why it is important now to have a sustainable runway, we highly recommend the following references from OlympusDAO OIP-11 and OIP-18.

Reference readings: https://forum.olympusdao.finance/d/37-oip-11-reducing-reward-rate https://forum.olympusdao.finance/d/77-oip-18-reward-rate-framework-and-reduction

Proposal: reduce reward rate to increase runway and achieve sustainable growth. We propose to reduce reward rate by 7% (0.7288% -> 0.667%) initially and reconsider next steps after that.

We strongly suggest our community support this proposal.

Please vote. Y - support the proposal N - against the proposal