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SPICESPICEby0x954689C01A01d3F776eB69B753C084e526812f8d0x9546…2f8d

Updating LP reward and Airdrop structure

Voting ended about 5 years agoSucceeded

What? Mission Control suggests an update to the LP incentivisation and Airdrop structure that opens the LP and staking reward incentives. Specifically, the proposal suggests to

A) include the SPICE treasury wallet in the eligibility for LP and self staking rewards and reduce SPICE supply by burning the rewards received by the treasury wallet B) to include liquidity providers for any upcoming index products in the LP reward distribution. C) to include SushiSwap USDC and ETH as eligible pools. Why? With the current distribution structure, we have seen heavy concentration of rewards on a few large wallets, leading to a negative impact on the circulating supply and token value of SPICE. This erodes the originally intended value creating purpose of the incentives.

Since the treasury wallet provides a large part of the liquidity, we believe it should be included. This would

  1. alleviate sell pressure and resulting price decline as well as dilution for SPICE holders
  2. reduce circulating supply, by burning the rewards received by the treasury wallet.

In addition, opening the incentives for liquidity providers for all SPICE indices will improve liquidity and price efficiency for those indices and further reduce SPICE sell-pressure.

Lastly, including SushiSwap USDC and ETH pools for liquidity mining extends yield farming options to a larger stakeholder group.

How? If successfully passed, the next distribution of liquidity incentives will be allocated between all existing liquidity providers, including the treasury wallet as well as liquidity providers for new indices as defined above. The change in the allocation key will be effective as of the date that this proposal enters snapshot as an official vote.

Off-Chain Vote

Yes
716.37K 99.9%
No
574.83 0.1%
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Timeline

Feb 12, 2021Proposal created
Feb 12, 2021Proposal vote started
Feb 14, 2021Proposal vote ended
Oct 26, 2023Proposal updated