Proposal #145

Increase Max Rate of Incentive Adjustment from 20% to 25% (Round 3)

Exec Legacy Content
passed
Expected result
Passed
Turnout / Quorum
21.64% / 20.00%

Voting period

Voting ended100.0%
Voting start 2022.02.10 at 21:27:14
Voting end 2022.02.13 at 21:27:14

Vote distribution

93.28%
41 851 198 osmo
Yes
0.48%
213 632 osmo
No
0.00%
2 196 osmo
Veto
6.24%
2 798 824 osmo
Abstain

Details

logo
Proposer
-
Total deposit
500 osmo
Submit time
2022.02.10 at 21:25:06
Deposit end time
2022.02.24 at 21:25:06

Description

Problem Statement \n\n The Adjust Scale parameter of used to dampen volatility in the weekly incentives adjustments algorithm is too low. Pools are hitting this cap and either not having incentives drained or added quickly enough to reward the liquidity the market is valuing the most.\n\n This could be detrimental to TVL growth as existing liquidity can become over incentivized while newer liquidity, more valued by the market, struggles to attain justified reward allocations.\n\n Experimental Problem Solution\n\n Incrementally increase the Adjust Scale parameter then monitor how frequently pools continue hitting the cap and assess if further increase proposals are warranted. The hypothesis is that this variable should be turned up to probably 25% but in multiple phases to allow for observation of the impacts.\n\n Proposal \n\n By voting YES on this proposal you signal approval to increase the Adjust Scale variable +5% (20% to 25%) \n\n By voting NO on this proposal you signal dissent and want the Adjust Scale variable to remain at 20% \n\n Commonwealth Discussion \n\n https://commonwealth.im/osmosis/proposal/discussion/2802-increasing-weekly-adjustment-rate \n\n Adjust Scaling CAP Model \n\n https://docs.google.com/spreadsheets/d/1G-UGlzyJHuHFqdmGPxiE6hHVscBDtxOFZVMFPo5lTsc \n\n Showing pools that have too high incentives that are reducing too slowly (Blue), too low incentives that are increasing too slowly (Green) and that the scaling does not apply to due to low maturity (Grey)

Votes

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Proposal #145: Increase Max Rate of Incentive Adjustment from 20% to 25% (Round 3) - Osmosis (OSMO) Mainnet Explorer