Cut Emissions & Add Lock-Up

Proposed by: @adamscochran

TL;DR:

• The current emissions are too aggressive and do not properly incentivize long term participation in the ecosystem.
• This proposal aims to change the output of new $SUSHI and add a lock-up period to encourage participants to stay in the ecosystem longer.
• I'm proposing: -- Cutting the emissions after the migration from 100 $SUSHI per block to: --- 50 $SUSHI per block in Year 1 & 2 --- 25 $SUSHI per block in Year 3 & 4 --- 10 $SUSHI per block in Year 5 -Additionally: -- 2/3rds of new $SUSHI issued is locked for a one year vesting period. -- Locked $SUSHI is still able to earn fee payments but cannot be sold or used in voting until it is unlocked.

Explanation:

Right now the rate of $SUSHI inflation is too high and over dilutes individuals contributing to the ecosystem.

This scaled design aims to lower the emission of $SUSHI while still rewarding liquidity providers.

By lowering the token emission over time, the expectation is that $SUSHI's price will be rising and so that LPs can expect the same payout rate but not overly dilute the total supply.

The lock up period also allows them to earn from the token without the constant downward pressure.

Comparing the two models:

The proposed model would leave us with around 600M tokens in Year 5 instead of the 1.5B currently planned.

Pros:

• Rewards early participants.
• Lowers the emission of the token.
• Removes the downward sell pressure by creating a lockup.
• The lockup still allows users to gain upside from the project.
• Promotes long term involvement.

Cons:

• If token price doesn't rise fast enough it could be not enough to support LPs.
• Will have a disproportionate impact on our dev fund which was drained during the early bonus period.