Optimizing Reserve Rates

So should we have another poll and proposal to set the reserve to 25% on governance pools, 2.5% on community pools
I totally agree that now it’s the time to build the reserve while the whales are still there. Would be nice to be able to track the reserves by gov pools

Awesome, thanks for the reply. The first two points definitely make sense, but I am mostly reassured with your view on what the reserve should be used for in point three (that was not clear to me before, it seemed more of a temporary goal).

When the main goal of the reserve is to serve as a growth mechanism, I fully support setting it to a higher rate, because over a longer time it does not influence the expected value you can win from a pool. I would perhaps not immediately set it to 50%, but ease into it with 25%, making sure the whales don’t immediately jump ship.

My main issue was that I wanted to make the reserve fund was not aimed at being used to fund development / advertisement ideas etc (as proposed on the Discord) because that is exactly what the POOL treasury should be used for and not yield rewards that are supposed to go to the participants of a pool. I also have no problem at all with spending small amounts on the right charity.

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This article is relevant for understanding how reserve and sponsorship function and what they should be: Perpetual Growth. Two important mechanics of the… | by Leighton Cusack | PoolTogether | Mar, 2021 | Medium

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I hope everyone reads this and understands how it works. Since I learned about it I thought moving the POOL distribution to sponsorship was the best strategy from the point of view of growth. I think it would really ramp up deposits; people would be astonished at how good their odds are.