Author(s): @TigrisOfGaul

Summary

This proposal seeks to allocate up to 250,000 TAROT per month, over a 12-month period, toward liquidity mining and other incentivization programs on Optimism.

Abstract

If adopted, this proposal seeks to provide TAROT co-incentives from the protocol treasury, in addition to OP token incentives via Optimism's Governance Fund. TAROT tokens may be allocated to various incentivization programs on Optimism, such as increasing TAROT-paired liquidity on Optimism and/or increasing borrowing and lending activity within Tarot on Optimism.

The Phase 1 Proposal for Tarot on Optimism is available here: https://gov.optimism.io/t/draft-gf-phase-1-proposal-tarot/3002

Motivation

We plan on using OP token incentives to drive deep liquidity to TAROT-based pairs on two leading OP protocols: Velodrome and Beethoven X. By significantly increasing the available liquidity for TAROT on Optimism, Tarot will have the flexibility to offer any number of direct or targeted incentivization models on Optimism for bootstrapping new lending pools.

Specification

The changes we propose authorize the protocol to:

• Allocate up to 250,000 TAROT per month from the protocol's treasury towards incentives on Optimism over a period of 12 months

Note: These changes are predicated on the passing of the GF Phase 1 proposal for Tarot on Optimism.