Proposal #80

Increase max Rate of Incentive adjustment from 10% to 15%

Exec Legacy Content
passed
Expected result
Rejected
Turnout / Quorum
11.11% / 20.00%

Voting period

Voting ended100.0%
Voting start 2021.12.02 at 02:36:09
Voting end 2021.12.05 at 02:36:09

Vote distribution

99.80%
22 989 117 osmo
Yes
0.04%
9 514 osmo
No
0.04%
10 199 osmo
Veto
0.12%
27 362 osmo
Abstain

Details

logo
Proposer
-
Total deposit
500 osmo
Submit time
2021.11.30 at 07:34:42
Deposit end time
2021.12.14 at 07:34:42

Description

Problem Statement\n\nThe Adjust Scale parameter of 10% 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\nThis 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\nExperimental Problem Solution\n\nIncrementally 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 20%-25% but in multiple phases to allow for observation of the impacts.\n\n\nProposal\n\nBy voting YES on this proposal you signal approval to increase the Adjust Scale variable +5% (10% to 15%)\n\nBy voting NO on this proposal you signal dissent and want the Adjust Scale variable to remain at 10%\n\n\nCommonwealth Discussion\nhttps://commonwealth.im/osmosis/proposal/discussion/2802-increasing-weekly-adjustment-rate\n\n\nAdjust Scaling CAP Model\nhttps://docs.google.com/spreadsheets/d/1G-UGlzyJHuHFqdmGPxiE6hHVscBDtxOFZVMFPo5lTsc\n\nShowing 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

Voter
Answer