In this proposal, the liquidity committee is asking for the StakeWise DAO approval to gradually replace SWISE liquidity incentives with osETH in order to minimize new SWISE token emissions.
Our analysis suggests that as of today, the DAO would be able to cover 87% of the required incentives volume using ongoing revenue (i.e. 274 ETH per year at ~180,000 ETH worth of osETH outstanding), assuming additional initiatives like the migration to Balancer Boosted pools are implemented.
We believe that halting SWISE emissions and effectively cutting the available supply of SWISE to ~755M (vs current 1,000M) is a good first step towards increasing the fundamental strength of SWISE amid the general market downturn.
Should the StakeWise DAO switch away from 100% SWISE incentives to 75% osETH / 25% SWISE incentives, and migrate to Balancer Boosted pools for osETH on mainnet and Arbitrum?