🔗 TIP-007 Poll

THE PROPOSAL

This proposal is for amending the monthly volume target based burn logic. See: TIP-001 and TIP-003

This multi-choice vote addresses 3 parameters, execution will depend on the results of each:

1. Monthly target - remain denominated in $RUNE OR change to US Dollar value

2. Monthly target - if changed to $USD, how much to increase/decrease each month:

• If target is met, increase by $1M, $5M or $10M following month.
• If failed to meet target, decrease by $1M, $5M or $10M following month. OR
• If target is met, increase by 5% following month.
• If failed to meet target, decrease by 5% following month.

3. Keep or remove 300% multiplier cap.

NOTE:

Each voter may select ANY number of choices (ie. Change target to USD, +/- 5% per month and keep 300% multiplier cap).

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SUMMARY

Currently the monthly burn logic is defined by 3 parameters: (1) Monthly volume in RUNE (15mn RUNE as of February 2024); (2) increase/decrease vs previous month of 1mn $RUNE if the target has been achieved/not achieved; and (3) up to 300% multiplier calculated on actual_volume/target_volume

This TIP proposes an amendment of the above parameters.

MOTIVATION

The driver of the change is basically to review the BURN parameters on a regular basis. Like all mechanisms put in place they can get deprecated, so it is a good practice to review periodically their assumptions/parameters.

BENEFITS

1. Make the BURN targets more efficient and transparent.
2. Helps clarify confusions that it is a $THOR burn and not $RUNE burn.
3. Avoids volatility around RUNE price for the volume target.

DRAWBACKS

1. The original design of choosing $RUNE for target is based on the notion that THORSwap volume should grow organically with the THORChain protocol.
2. There has yet to be a month where volume target has not been met - so the overall mechanisms have not played out fully.
3. So far, there's only been one month where the multiplier cap has been hit - indicating that it works as a safe-guard system. The burn programme should organically help to grow THORSwap usage, and incentivize engagement. The key goal is not to burn through all community incentive allocation as soon as possible.