[SIP-08]: Handle Unvested SYN for Former Nerve Liquidity Providers

Background

• We have ~70 million SYN allocated to former Nerve LPs which at $1.63/SYN is worth $114 million. This allocation came from the Nerve to Synapse split.
• This ~70 million SYN is allocated as a calculation of 1 NRV = 2.5 SYN
• We have ~161 million SYN circulating, so the amount of SYN allocated to NRV LPs is ~43% of the current supply
• The total amount of NRV allocated to former Nerve LPs was ~28 million NRV
• If NRV was still alive and well, the value of all of the NRV vesting for LPs at an average price of $1.50/NRV would be worth ~$42 million

Summary

Former Nerve LPs have an expectation of vesting roughly $42 million of NRV. With unvSYN they are currently allocated almost 3x that, $114 million worth of SYN at the current SYN price.

Proposal

In order to find a compromise between the current SYN holders and the former Nerve LPs, I propose we deliver $42 million of SYN to former Nerve LPs and send the rest of the allocated SYN (worth ~$72 million) to the DAO-controlled treasury.

• We take 26 million SYN and make it claimable by former Nerve LPs weekly over a 12 week (3 month) period.
• When former Nerve LPs claim their SYN, it vests over 3 months and then is fully released
• If the Nerve LPs want to immediately vest their vesting SYN at any time, they pay a 50% penalty which is issued to single SYN stakers.
• unvSYN is considered completely issued to Nerve LPs after 6 months. We send the rest of the SYN which was allocated for Nerve LPs (~44 million SYN) to the treasury.

Appendix

For implementation we can reference how Ellipses handles EPS weekly airdrops to veCRV holders, 3 month vesting, 50% immediate vest penalties, and rewards for EPS single stakers.