Proposal #227

Remove Incentives from all Terra pools

Exec Legacy Content
passed
Expected result
Passed
Turnout / Quorum
42.10% / 20.00%

Voting period

Voting ended100.0%
Voting start 2022.05.14 at 18:28:32
Voting end 2022.05.19 at 18:28:32

Vote distribution

95.78%
83 606 894 osmo
Yes
0.49%
427 070 osmo
No
0.03%
28 706 osmo
Veto
3.69%
3 223 456 osmo
Abstain

Details

logo
Proposer
-
Total deposit
500 osmo
Submit time
2022.05.14 at 18:24:57
Deposit end time
2022.05.28 at 18:24:57

Description

Voting YES for this proposal indicates that OSMO incentives should be removed from all Terra related pools and the fixed daily OSMO emissions reallocated to all other Incentivized pools. \n\n Voting NO for this proposal indicates that OSMO incentives on Terra pools will remain, and incentives naturally drain over time. \n\n Background \n Due to the hyperinflation of LUNA supply caused by the recent UST depeg event, LUNA pools receive a far higher share of incentives than they should according to the current incentive model. \n UST incentives will likely also excessive once the hard fork allows unpooling and liquidity falls, as well as when the first people unbonding begin to sell their UST into the pool. \n As Osmosis incentives cannot be adjusted by more than 25% a week due to the Scaling Cap setting, the incentives on these pools may remain high for several months. This results in Osmosis paying for liquidity in these pools which is, at best, a highly speculative purchase based on any potential recovery model. At worst, users will buy in to obtain a high APR and be used as exit liquidity for people who have unbonded early. \n While the existing incentives do compensate for Impermanent Loss to some extent, they do not differentiate between users who suffered this and users who bought in since. If this proposal passes, liquidity providers will have obtained 11 days of incentives since the crash.\n The Osmosis emissions taken from the Terra pools will be distributed proportionately to all incentivised pools, giving all pools a boost of around a third of their APR\n\nCommonwealth Thread: https://gov.osmosis.zone/discussion/4878-urgent-remove-all-terra-related-incentives

Votes

Voter
Answer