TLDR; This proposal reduces $mine emissions to 10% p.a. and redirects these emissions 50% to $mine governance staker wallets and 50% to a new Pylon Treasury.
As of today on Apollo DAO there is $32m TVL locked in the $mine-$UST LP yielding 118.7% APY.
In order to pay-out this APY our community must issue USD $40m worth of $mine token inflation p.a., which translates into ~400m new $mine tokens p.a. assuming $0.10 per token.
With a circulating supply of ~600m $mine tokens today, if we had to issue 400m new tokens in the next year, this would be a 67% rate of inflation p.a…
This high rate of inflation for Pylon protocol is misdirected and does nothing to add value to $mine stakers who are here to participate in IDOs. Also it can contribute to a farm-and-dump mentality for some ecosystem participants which puts a negative drag on value of $mine token price.
Also, this high rate of inflation is disproportionately harming the value for $mine governance stakers, who are unable to enjoy the high LP yields on Apollo DAO for fear of unstaking and losing access to IDOs.
To fix the misalignment of interests that harms the $mine token price and the core $mine governance staking community, we propose the following resolutions:
As a community we move to cap the annual inflation rate of the $mine token to 10% of the circulating supply p.a.
As a community we move to direct 1/2 of $mine inflation emissions directly to $mine governance staker wallets pro rata to the proportion of $mine staked by each wallet relative to total $mine staked overall;
As a community we move to direct the other 1/2 of $mine inflation emissions to a new Pylon Treasury for usages TBD by future vote of the community.
Before putting the proposal to community governance vote, I look forward to hearing feedback from the community and incorporating it into the proposal.