Pop Emission Proposal/Discussion

Proposal to reduce Pop emissions from a 3% weekly reduction to a 1% weekly reduction.

First of all, I love the tokenomics of the project. I think the vesting of a portion of the rewards was a massive success for Sushi as exhibited by the price action of the token pre-vesting and after its introduction/limited run time. So its clear the team is looking out for prospective token owners by adding that feature.

I also looked into what other projects did as far as emissions. Defi platforms are unique compared to l1’s or metaverse tokens and tend to have their own set of unwritten rules. Looking at several other defi paltforms (i.e., Step Finance, Harvest Protocol, etc.) they generally went with a 4% weekly reduction in emissions. This has the benefit of creating an outsized reward for early users who are taking the biggest risk in using a new platform. However it also means a larger percentage of the supply is farmable up front and is subject to being gamed by professionals who farm the new hot farm with an eye on the short term.

So what about reducing the weekly emissions to 1%? This would still create outsized rewards for those who farm early, but smooth the curve so there is less incentive to get gamed by the pros. The potential downside to this would be is there enough emission to entice people to take the risk and use the platform early before it has had a chance to establish itself? That is the balance that needs to be struck and is in my opinion, difficult to do. Going for a 1% curve I believe is still more than enough to entice people use the platform early.

I look forward to hearing from the community and the team on this. Mining rewards are set to go live when the first product is launched, so this is a great chance to brainstorm if 3%, 1%, something in between, or something totally different is in the best interest of the project, token holders, and platform users.

3 Likes

Yes, 1% sounds right.

I am in favor of reducing the weekly emissions to 1%

Even .5% is likely good enough IMO

  • 3% weekly emission reduction (Current)
  • 1% weekly emission reduction
  • 0.5% weekly emission reduction
  • Other

0 voters

Attached here is a poll representing the current 3% emissions (current), 1% emissions, and the proposed .5% of Helen. I also added an “other” option, so if thats your choice please elaborate below.

Keep in mind the lower the emission rate, the more smoothed out the inflation schedule would be, but the key is to seek to balance incentivizing platform usage (platform usage = growth of treasury) and getting the token in the hands of true supporters, while supporting token price in the early stages of the game.

I am strongly in favor of reducing emissions to either 1% or .5% giving the project more incentives on the back end and mitigating professional gaming of the incentives in the early going.

The new curve for emissions will look like this if implemented:

As you can see its a smoother curve than the current one reserving more tokens for years 2, 3, and 4, with far less tokens released in Year 1.

Helping newcomers will have a network effect, and increase the value of the tokens over the said period of time…

Popcorn is for the people? then it is worth allowing the time required for amateurs to understand the system… truth is, nobody likes to get ‘gamed by the pros’ …not even the pros perhaps!

1 Like

I mean this is all true. But seed round investors will begin unlocking within 3-6 months. I would say the best marketing is the high apr upfront.