Establish a Treasury + Redirect MINE Airdrops for LUNA to MINE stakers

One of the main things we need to establish is a robust treasury for MINE stakers. Instead of redirecting all of the UST generated on Anchor via Pylon Pools to do buybacks, we should put it into a community-governed fund to establishing other LP strategies (as part of a protocol-owned liquidity provision initiative) and redeposit into Anchor or other highly intensive yield farming protocols to generate more traction.

Instead of redistributing MINE buybacks to MINE stakers on a fragmented per week basis (the yields taking some time every week to accrue), we should instead draw from the weekly MINE airdrops reserved for LUNA stakers and distribute that per block to MINE stakers. Especially when LUNA stakers may not always have a central incentive to continue holding MINE and since we want to reward the loyalest MINE stakers, we should make this a governance proposal and vote for our own community.

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Hey butaw,

LOVE the idea of setting up a robust treasury. I think a community governed treasury is something worth trying, all be it something we slowly move into (start with 25% and increase if goes well). I believe others have raised the idea of using the money raised from Pylon Pools to purchase the tokens being provided in that specific pool, whereby then providing the treasury with them. I really liked this idea and can like it in with your idea of a community governed treasury. Though this does increase the problem of token emissions.

I definitely feel the concern around the high token emissions and their impact. This is going to be a fundamental battle in MINE tokenomics. As much as removing airdrops for LUNA stakers will help, I can’t help but feel it is a bad idea. Airdrops to LUNA stakers (and now ANC) is a fundamental practice in this ecosystem, nearly all good projects do it. I kind of see it as a thank you for helping make Terra what it is, and I actually think it is an amazing practice that should continue. I think the correct approach is to better incentivize LUNA stakers to HODL or even stake MINE instead of selling. This means we need to establish better utility for MINE. I will make a post soon about how I would approach this.

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Also, LOVE the idea of a robust Treasury.

The community could use it as a tool to buy and HODL some of the IDO tokens, perhaps under 6-month or 1-year lockup, matching VC terms as needed?

Perhaps with some kind of distribution out to $MINE stakers at the end of the period?

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This is an amazing idea! Sounds like there’s a few proposals wrapped up in this:

  1. Dramatically reduce the amount of $MINE being airdropped to LUNA stakers. The Flipside crypto analysis that showed airdrops don’t necessarily increase engagement was an eye opening analysis for me.

  2. Redirect UST generated into a DAO-controlled treasury and try to grow the treasury to give $MINE intrinsic value and new revenue streams.

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Agree with all the above.

  1. Redirect LUNA - staking rewards to the Treasury.
  2. have yield generating mechanisms on the Treasury. E.g., if MINE takes a fee in PSI tokens, we stake those tokens and the Treasury grows over time. The Treasury does not only need to be used for MINE buybacks, but can itself become an ecosystem investor. Projects which list on Pylon would also feel we have skin in the game then.
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after reading this thread https://twitter.com/SmartStake/status/1459375190484393986?s=20 it seems people in the Terra ecosystem are genuinely considering the downside of airdrops. My initial thoughts might actually be wrong. That being, maybe it is a practice within the Terra ecosystem that is detrimental to new projects and it is something that needs to change.

With this in mind two things arise for me.
1 - I think it would be good to still reward/thank Luna stakers.
2 - The anger Luna stakers might have if we remove the MINE airdrops.

I see two solutions to this.

1 - We could ‘airdrop’ Luna stakers some of the UST earned from Pylon pools (the UST that is normally used to buy MINE and give to governance stakers) and instead give the MINE that would be airdropped to Luna stakers to MINE governance stakers. This would reduce MINE selling as our governance stakers are far more aligned with holding MINE.

2- Alternatively, we could redirect the MINE to a Pylon treasury. We could use the MINE for “treasury swaps” with projects launching on Pylon. This could work well with more projects looking to create diverse and robust treasuries. In essence, we would give x amount of MINE to new projects which launch on Pylon for them to keep in their treasury and have it locked/vesting for y period of time. In return they also give us z amount of their tokens which we have locked/vesting for y period of time. This creates a decent amount of skin in the game for both parties and also rewards MINE stakers (given we direct the project’s tokens to MINE governance stakers).

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Fully agree that Pylon must be attractive to IDO projects and :

1- Grow Pylon’s own treasury with built-in yield intensive mechanisms in order to
invest in carefully selected IDO projects that meet a set of DAO approved criteria’s

2- Ensures bot free IDO launches (KYC, restricted allocation per wallet or any other efficient innovative approach.)

3- Gives access to a highly engaged community incentivised to Hodl / Stake / Farm / Promote their token.

While a minimum amount of MINE staked can be a pre-requisite, we could imagine that investors can maximise their IDO allocation as well as their MINE staking %returns through completion of certain tasks in line with the IDO project needs

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Yes, taking as a given that the project’s mine tokens are directed towards MINE governance stakers.

Ed, can you confirm if the live proposal is based on this thread?