TIP 32 - Proposed changes to LON Tokenomics （LON 经济模型参数调整）

Voting ended over 3 years agoSucceeded

Based on the LON whitepaper, all trade fees accumulated on Tokenlon will be used to buyback LON from the open market. For one LON bought back, one LON will be minted and distributed to all ecosystem participants, such as traders, market makers and relayers
40% of the LON bought back goes to the LON treasury and 60% goes to users who stake LON
Definition of current parameters
- Lfactor is the percentage of tokens transferred to the LON treasury from feeToken. Rfactor is the amount of LON distributed to the LON treasury from each buyback. The minting ratio is determined by the parameters during LON buyback
- Based on the results of TIP10, 80% of feeToken from WETH enters the LON treasruy directly. This is to reimburse relayers for the gas fees, with WETH Lfactor set at 0.8
- 60% of LON bought back is distributed to stakers and 40% is distributed to the LON treasury, with an Rfactor of 0.4
- L/RFactor applies to all feeToken tokens and is set individually for each token
Current Issue
- In this bear market, the trade fees Tokenlon receives from the list of feeToken is fluctuating greatly
- The LON treasury is made up mostly of LON, which makes it difficult to weather the bear market
- If no changes are made to the LON tokenomics, the value of trade fees and LON treasury will continue dropping

Let the community decide on the proposed changes to LON tokenomics, to better weather the bear market

Distribute ETH, USDT and other main tokens from feeToken to the LON treasury, to improve the robustness of the LON treasury
Move all feeToken altcoins back to the LON treasury and make adjustments to the LON treasury portfolio accordingly
Make the following adjustments to LON tokenomics to better weather the bear market
- Changes to L Factor parameters
  - L = 1 for ETH, with all ETH allocated to the treasury
  - L = 0.2 for USDT, where 20% is allocated to the treasury, 80% used to buyback LON
  - L = 0 for all other altcoins, 100% is used to buy back LON
  - L=1 for Altcoins that meet the requirements. Token to be allocated to the treasury and the portfolio to be managed accordingly
- Changes to R Factor parameters
  - As the amount of feeToken bought back has been reduced, staking APY will drop. To address this, we need to increase the token amount distributed to the staking pool
  - We suggest to decrease the Rfactor from 0.4 to 0.3, to maintain the APY level, as stakers will receive a larger percentage from the trade fee pool
- The ratio of minting LON remains the same at 1:1. Changes may be made in the future, depending on market conditions

Based on the voting results, make adjustments to the LON tokenomics. Timeline for the changes to come into effect will be announced via our official channels

根据 LON 白皮书的经济模型设计，Tokenlon 协议捕获的手续费会用于回购 LON，每次回购会 1:1 触发 LON 的铸币，用于奖励撮合完成每笔交易的用户、做市商、中继方等 Tokenlon 生态的贡献者
回购的 LON 按 4:6 的分配比例，分别进入社区财库和用于 LON staking 用户的质押奖励
参数定义
- Lfactor 是 feeToken 中代币划入社区财库的百分比参数；Rfactor 是每次回购所得的 LON 流入社区财库的比例；铸币系数是回购 LON 触发的增发参数
- 以 TIP10 提案为例，feeToken 中的 WETH 80% 直接进入社区财库，用于报销中继方代付矿工费，Lfactor 为 0.8
- 回购的 LON 的 60% 用于奖励 LON 质押用户，40%流入财库，Rfactor 为 0.4
- L/RFactor 可针对每个 feeToken 代币，单独配置
现存问题
- 当前市场环境下，Tokenlon 捕获手续费中的 feeToken 代币价格波动较大
- 社区财库中以 LON 为主，代币分布比较单一，对应市场变化的健壮性不强
- 按照现有经济模型继续运行，可能导致社区财库和 feeToken 的净值持续下跌

A: Support（支持）

68.83K LON100%

B: Reject（反对）

0 LON0%

Jul 01, 2022Proposal created

Jul 01, 2022Proposal vote started

Jul 04, 2022Proposal vote ended

Oct 26, 2023Proposal updated