SGP-20: Reduce SPECTRA Emissions to Zero

Author: Gaspard · Category: Governance Proposal (SGP) · Created: 2026-06-17

SGP-19 was the first step toward conservative supply management: half of weekly emissions were redirected from gauges to a DAO-controlled Liquidity Wallet. This proposal takes the next step and pauses the mint at its source, bringing new SPECTRA issuance to zero.

Once approved on Snapshot, the weekly mint pauses entirely from the following epoch: gauge emissions, the SGP-19 Liquidity Wallet allocation, and the rebase all move to zero.

Everything that defines a veSPECTRA position stays in place. Locks, governance, voting rights, and the treasury fee accrual introduced in SGP-19 continue unchanged. The protocol continues to capture fees; it simply stops issuing new SPECTRA supply to do so. Reversible by a future SGP.

Reasoning

Metric	Value
Weekly emissions	555,490 SPECTRA (~$1,567)
Annualized	28.9M SPECTRA ($81K), ~6.2% of circulating
Voting incentives, last 4 weeks	≈$0
Protocol TVL	~$38.28M (17 June 2026)

Sources: stats dashboard, DefiLlama.

• Issuance costs the protocol more than it returns. Roughly $1,567 per week is emitted against about $1,522 per week of gross fees. New supply is being created to sustain a system that the protocol's own revenue already covers.

• The incentives market has gone quiet. Voting incentives have remained at ≈$0 across all gauges for the last 4 weeks, down from ~$1,500 per epoch in March (SGP-17).

• Emissions and performance have come apart. The strongest markets sit outside the emissions program: the top markets, including stXRP on Flare, draw ≈$0 in emissions and ≈$0 in incentives, while the gauges that pull the most emissions are far from where TVL and volume are concentrated.

• Zero issuance protects existing holders. Pausing the mint removes the dilution that emissions place on every veSPECTRA position. Preserving an efficient, undiluted distribution of the token takes priority over issuance that the market is no longer rewarding.

What changes, and what continues

• For LPs: the share of pool swap fees and the underlying yield of LP positions are unaffected. Only SPECTRA emissions stop.

• For veSPECTRA holders: locks, governance, voting rights, and the SGP-19 treasury fee accrual continue as they do today. The rebase ends with emissions, a component that currently represents around 0.20% APY. In exchange, the share of total supply held by lockers is no longer diluted, as zero issuance leaves every position free from inflation.

• Pool swap fee shares, governance, and locked positions themselves are untouched. The change is to the newly issued SPECTRA and the rebase mechanism it funds.

Specification

If approved, from the following epoch:

1. Pause the weekly SPECTRA mint in full (gauges, SGP-19 Liquidity Wallet, rebase to 0).
2. Pause gauge voting and the incentives marketplace while issuance is at zero. Protocol governance continues.
3. veSPECTRA locks, governance, and SGP-19 fee accrual continue unchanged.
4. Reversible: a future SGP can re-enable issuance if fees or the incentive market justify it.