TIP-183: THALES halving

id	Title	Status	Author	Description	Discussions to	Created
TIP-183	Thales staking emissions halving	Draft	acyberduck	This TIP proposes to instantaneously reduce the current $Thales emissions by more than a half		2023-11-08

TIP: 183 - Thales staking emissions halving

Simple Summary

This TIP proposes the instantaneous staking emissions to “halve” from current 105K Thales weekly to 40K Thales weekly.

Abstract

This TIP proposes to set weekly staking rewards to 40K Thales for the week following approval

Motivation

Current Thales total emissions are approximately 4x the Thales buy-back-burn (BBB) rate, of which half are staking rewards, leading to continuous sell pressure from unaligned yield farmers that periodically sell their vested Thales. While we as a protocol are continually shifting LP focus from incentives to protocol owned liquidity, "halving" or reducing the staking rewards by 50%+ would make Thales staking "inflationary neutral", whereby staking rewards will become fully offset by BBB.

Specification

Current Staking rewards for a total of 105K.

Proposed Staking rewards for a total of 40K with a 3:2 ratio of base rewards to bonus rewards (24K base, 16K bonus) distributed to individual chains as per TIP 181.

Until TIP 181 is implemented, manual allocation per chain is to be as follows: Optimism 20k THALES Arbitrum 10k THALES Base 10k THALES

Emissions decay of 0.5% weekly approved in TIP 176 will remain.

BBB is to continue until and to be replaced by safebox fee distribution from TIP 182 is technically ready and implemented.

Rationale

Thales staking emissions halving has both a marketing twist (BTC Halving!) and leads to decreased selling pressure from unaligned Thales yield farmers. Improved Thales token emissions to BBB ratio with an expected continual growth in BBB will hopefully lead to Thales token price stabilisation and potentially attract new investors.