TLDR; This is v2.0 of a proposal to reduce $mine emissions and redirect these emissions both to $mine governance staker wallets and also to a new Pylon Treasury.
Background on the Proposal:
Over the past week on Apollo DAO there has been an average daily balance of $30m TVL locked in the $mine-$UST LP yielding ~115% APY.
In order to pay-out this APY our community must issue USD $35m worth of $mine token inflation p.a., which translates into ~350m new $mine tokens p.a. assuming $0.10 per token.
In addition, the Pylon protocol is airdropping tokens to $Luna stakers and this is an additional source of inflation.
With a circulating supply of ~600m $mine tokens today, if we had to issue 500m new tokens in the next year, this would be a 83% rate of inflation p.a.
This high rate of inflation for Pylon protocol is misdirected and does little to nothing to add value to $mine stakers who are here to participate in IDOs. Also it can attract ecosystem members who have a farm-and-dump mentality which puts a negative drag on value of $mine token price.
Also, this high rate of inflation is actually disproportionately harming the value for $mine governance stakers, who are unable to participate in the high LP yields on Apollo DAO for fear of unstaking and losing access to their IDO access privileges.
To fix the misalignment of interests that depresses the $mine token price and harms the core $mine governance staking community, we propose the following resolutions:
The community moves to eliminate 65% of $mine LP rewards and to redirect the sum of 65% of the initial quantity of $mine that was established by the protocol for LP rewards into a new Pylon Treasury***
The community moves to redirect 50% of $Luna staker rewards into a new Pylon Treasury***
The community moves to redirect other 50% of $Luna staker rewards to wallets with a score of 20 or higher on Flipside Crypto Lunatic rating scale
*** Note: Based on community discussions that are unfolding here in Pylon Forum, it seems quite likely that the new Pylon Treasury will be used for purpose of establishing a Treasury Swaps program to buy and hold IDO tokens on behalf of $Mine stakers. Additional community work is necessary to define the mechanism of the Treasury Swaps and to pass a motion to enable the Treasury Swaps concept. For clarity, the present proposal does NOT authorize use of any funds deposited in the new Pylon Treasury for the Treasury Swaps or any other use, and an additional vote of governance shall be required to authorize use of Treasury funds.
This is v2.0 of a proposal originally published on Pylon Forum on Nov 12th and incorporates all community ideas proposed in the community discussion to date.
v1.0 of the proposal & all community discussion is available here: Lowering $mine emissions to end downward pressure on value and harm to $mine governance stakers - #14 by Woody
We feel that v2.0 is nearing finished form and can attract wide community support.
Before putting v2.0 to community governance vote, we look forward to hearing feedback from the entire community and incorporating it into the proposal. Please share on social media so that everyone has a chance to review the proposal and provide feedback.
Assuming we see wide community support, we intend to put the proposal to community vote by Nov 20th at 12:00 UTC.