| mccp | title | status | author | discussions-to | created |
|---|---|---|---|---|---|
9 |
Reward distribution for weeks 35-41 |
Implemented |
Dimitri Golecko (@dimsome) |
2021-08-16 |
It is motioned to continue the reward distribution as specified in MCCP 4 with the amendment MCCP 7 for the weeks 35 to 41, starting from 30th August 2021 until the last distribution under this MCCP on the 11th Octorber 2021. This reward distribution consists of 6 weekly emissions of 207,692, a reduction from the previous distribution as specified in MCCP 8.
MCCP 4 proposed a prospective emission schedule over the next few years and a set of rules to follow in order to calculate weekly distributions. MCCP 7 later amended it and carved out a portion to distribute on Polygon. The proposal MCCP 8 extended that emission to 6 more weeks and reduced the emission to 242,308 MTA weekly.
This MCCP motions to continue the reward emission window for 6 weeks, starting from 30th August 2021 until the last distribution on the 11th October 2021 with reduced weekly emissions of 207,692.
The reward emission is a key part of the mStable ecosystem. Not only does it bind liquidity, but also rewards participation and usage of the mStable protocol - It allows protocol users to become its owners. Therefore an extension of the mentioned rewards is important to keep this momentum going and to continue to incentivise liquidity providing, staking and participation.
The reduction in emission is proposed to decrease the weekly inflation rate of MTA and to allow MTA to appreciate over the longer term. MTA holders and stakers benefit the most from a reduction of emission since sell pressure from liquidity mining can be reduced that way. This emission is also subtle enough not to dramatically lower the APR for liquidity providers and stakers and allows also enough to continue incentivisation with previously agreed partners (e.g Balancer, FRAX and Polygon).
Lastly, with the upcoming release of staking v2, a more longterm emission plan is being worked on. This fits directly into the later planned release of reward gauges, which would increase automation and less micromanagement The continuation of the rewards under the current methodology allows mStable core contributors, community and Governors to reach consensus on a long term emission plan for MTA that factors in more complex factors such as a longer reward emission epoch, staking v2, and a data driven approach to how MTA rewards are accruing value to the mStable protocol.
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