Remove Thales Staking Bonus Rewards

id	Title	Status	Author	Description	Discussions to	Created
TIP-201	Staking Rewards Tapering	Draft	MrBreakout (@MrBreakout)	Remove Thales Staking bonus rewards	discord.gg/thales	2024-05-11

Simple Summary

Remove Thales Staking points based bonus rewards program (Gamified Bonus Rewards) and cancel the rewards associated with it

Abstract

This TIP proposes to cancel Gamified Bonus Rewards and only retain the base rewards for Thales Stakers + Replace Thales Staker weekly claims with rewards accrual (auto reward claims)

Motivation

Current objective of this tapering is to be able to buyback and burn below the weekly inflation or getting close to that. Treasury is buying back and burning 1400 USD worth of thales tokens which is around 37k tokens at current price range. We are distributing 36,732 thales tokens for stakers and 29,500 thales tokens for LPs per week. Hence if we could cut the inflation half we could buyback and burn more than inflation.

Moreover, current gamified bonus rewards is not enough to attract more traders to protocol due to low emissions and price action

TIP-200 decreases LP incentives to 19,500 tokens per week.

If this proposal gets approved it will decrease total token emissions from weekly 66,232 tokens to 37,866 tokens which is overall %43 drop from current set up.

Due to lower weekly claims, community prefers rewards accrual over weekly claims hence this TIP requires to cancel weekly claim / claim + auto compound functionality and install feasible way for stakers to accrue rewards (auto reward claims)

Specification

Current Staking rewards is at 36,732 per week (18,366 Thales tokens base rewards + 18,366 Thales tokens gamified bonus rewards)

This TIP entails Thales Protocol DAO to facilitate canceling Gamified Bonus Rewards and only retain the base rewards for Thales Stakers which is 18,366 Thales tokens weekly.

Moreover, it is Thales Team's own architectural decision how to replace weekly claim functionality with rewards accrual (auto claim) in a feasible way

Implementation

n/a

Copyright

Copyright and related rights waived via CC0.