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SushiSushiby0x9cDEA12621A2ac04B80Cd60afBF7eFf364AFA3050x9cDE…A305

Fixing $SUSHI inflation without damage to LP

Voting ended over 5 years agoSucceeded

We do need to rework inflation for $SUSHI.

Current proposals in the community with block reward decrease of 90-98% strongly damages APY for LP. As a result, a significant part of liquidity providers most likely will leave and with lower liquidity, we can't compete with other AMMs.

Lowering inflation too early may lead to hazardous consequences for the ecosystem. Other proposals create imbalances between the interests of different groups of users of sushiswap and serve mostly whales with opportunistic aims.

Three different groups of people use Sushiswap. Farmers, who provide liquidity. Holders of $SUSHI, who provide price and economics of $SUSHI. Casual traders, who seek high liquidity and pay fees. Without any of them, the ecosystem will die. Our proposal is intended to satisfy every party.

We propose to decrease block reward more slowly, however, to have less inflation on a distance:

The first month: 150 $SUSHI per block and $10mln buyback from funds received from @chefnomi to cover "additional" inflation. The second month: 100 $SUSHI per block and $4mln buyback. For the next ten month: 80 $SUSHI per block. Finally: 50 $SUSHI per block for a second year.

With this plan, we will have much less inflation after one year as with 100 $SUSHI per block, and drop will be less damaging and slower. The buyback will compensate for inflation influence on price. Any locking mechanism for newly minted tokens will lead to instant sells of unlocked part of the tokens.

Off-Chain Vote

Yes, I support this changes
3.63K 87.6%
No, I strongly disagree
514.36 12.4%
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Timeline

Sep 12, 2020Proposal created
Sep 12, 2020Proposal vote started
Sep 14, 2020Proposal vote ended
Jan 23, 2024Proposal updated