Change of proposed incentives for ATOM/XPRT-pool on Dexter from 45 to 90 days

Governance
1

In this earlier forum post, and eventually in this on-chain proposal #22, the community approved the following allocations:

  • Allocate 166,667 XPRT to XPRT/OSMO (Pool #15) on Osmosis for 14-day LP bonding over 45 days.
  • Allocate 333,333 XPRT to ATOM/XPRT on Dexter for 7-day LP bonding over 45 days.

While the first allocation of 166,667 XPRT into the XPRT/OSMO pool on Osmosis was done and incentives have been live, the 333,333 XPRT incentives for the ATOM/XPRT pool on Dexter are yet to be distributed for implementation (although they were targetted to start early May).

The reason that the multisig members haven’t done this latter distribution yet is twofold:

  • There were already some XPRT incentives live on that pool, so the initially proposed timing seemed a bit too early
  • Based on the feedback in the Community Tokenomics Working Group, it seems like a lot of tokens to distribute for only 45 days of incentives.

Because of that, it is actually suggested to spread the incentives on the XPRT/ATOM pool on Dexter over 90 days instead of 45days.

This forum posts tried to get an understanding of the feeling in the community around changing the currently approved incentives from 45days to 90days. Of course, if the community wishes to stick to the original plan, then that’s fine too.

Please let us know if you:

  1. Agree and want us to launch an on-chain proposal to change incentives for ATOM/XPRT to 90 days
  2. Disagree and want us to go ahead as planned and launch the incentives on ATOM/XPRT for 45 days.
  3. Other

Please let us know here asap, so we don’t delay this any longer than needed. Thank you

6 Likes
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I fully support the proposed change to extend the incentives for the ATOM/XPRT-pool on Dexter to 90 days. This adjustment will provide a more balanced and sustainable incentive structure, aligning with the valuable feedback from the Community Tokenomics Working Group. Let’s proceed with launching an on-chain proposal to implement the 90-day incentive plan.

Thank you.

3 Likes
3

I agree on this proposal, the changes on inflation and the first aproach to incentivize Osmo and Dexter pools were a success, the price is reaching some stability and the staking ratio remains high, so the original plan is no longer valid IMO, extend the incentives to 90 days seems a better and more rational way of action. Keep the good work. We are all persistence.

3 Likes
4

I agree with this too Like other i think it will help thé project

3 Likes
5

Agreed with the proposal

3 Likes
6

Disagree. There is more risk of token price decline over a more extended vesting period of 90 days, which could lead to sell pressure. Because of this, I’m leaning more toward a 45-day vesting period.

1 Like
7

Could you elaborate on why you think this would be the case?
With 45 days, 7407.4 XPRT would be distributed every day
With 90 days, only 3703.7 XPRT would be distributed every day

Please note that this has nothing to do with vesting, but with the distribution of rewards to LPs in that pool.

1 Like
8

In the OP I read: “… suggested to spread the incentives on the XPRT/ATOM pool on Dexter over 90 days instead of 45 days”. So, I’m assuming we are discussing the vesting period being 45 days or 90 days, correct?
My logic is that over an extended period of 90 days, the chance of a price decline within that period is higher than the chance of a price decline in a shorter period.

1 Like
9

So as mentioned above, this has nothing to do with vesting (= the locking of tokens over a duration of time to avoid people transfering/selling them).

In this case 333,333 XPRT tokens will be distributed to the Liquidity Providers (LPs) of this XPRT/ATOM pool on Dexter. These rewards are streamed in real time to the LPs of that pool, and they can claim these rewards immediately. Those rewards are not subject to any vesting period, and they can be sold right away.

The suggestion here is to distribute these rewards over 90 days instead of over 45 days, so that daily there will be less XPRT claimable/available for LPs to be sold (numbers in previous reply). Of course if you look at the total number, the total XPRT amount will remain the same, but it’s just spread out more evenly. Hope this clarifies?

2 Likes
10

Thank you for clarifying! Then I agree with the proposal.

4 Likes
11

Great decision, team! I agree with the changes.

3 Likes
12

This proposal is now live on-chain for voting:

Please vote accordingly.

13

Sounds about right :+1:

2 Likes