As a follow up to SIP (#003) which reduced our protocol incentive emissions generally, we would like to further optimize our protocol incentives with the addition of scaling rewards by both:
Alongside our discussion and proposal covering the topic in more detail: https://gov.swivel.finance/t/sip-004-protocol-incentive-optimization/182
Should this proposal pass, we will begin to scale user rewards based on the time that an order has sat on the orderbook, as well as the distance from market price that an order may be at when filled.
Between these two additions, wash trading will be extremely reduced, ensuring the correct market participants receive rewards.
Should we further optimize our incentives with the addition of time-based, and price-based reward scaling?