POOL Endgame

[AtomicNuclei]

@Brendan

Timeline

Action	When
Define Next Steps	Now
Pilot Program	July 1 - Dec 31
Automated Program	Jan 1 2024 and onward

I’m totally onboard to leverage POOL to grow the protocol and I’m excited for it. When @TheRealTuna posted about getting the Pool Party started my only reservation was that we weren’t on Arbitrum or Base, yet.

@AtomicNuclei

Incentives will be important and we should leverage POOL! But, let’s get sorted and comfy on all the L2s we plan to be on, namely Arbitrum and Base and see next steps from there.

Now we’re on Optimism, Base, Arbitrum and perhaps L1 Mainnet Ethereum soon. I think we’re comfortable enough to think about the next steps and I think we’re there. It did come sooner than I anticipated, but the Arbitrum and Base rollouts were smoooth.

@TheRealTuna

While I don’t believe slow and steady is the way to go for incentives, keep in mind that what I’m proposing only ready’s the treasury to incentivize on Arbitrum and BASE.

Yeah, if we just drip POOL for the sake of dripping POOL then it’ll likely be non-impactful. I’m totally for a measured approach to incentivize depositing now.

@Brendan

We also want this program to be generous enough to incentivize deposits. I believe we need to front-load the distribution to give depositors a big incentive to jump in now. If growth works as intended, then the value of the incentives will grow alongside the protocol.

@TheRealTuna @Brendan I think you both have wanted similar goals for PoolTogether, but diverged on how to execute those ideas, albeit always slightly not radically. Well, I think there’s some good alignment here finally! :3

I do like the idea of the Pilot Program so that we can remain non-committal to any possibly ineffective strategies and pivot when required.

This approach

@TheRealTuna

Let’s Go ALL IN

can now be executed upon, but responsibly hehe :3

Also an emphatic yes to:

1. Capping the POOL supply
2. Winding down governance

Governance had its time and I think it was required in our early days. Now, I think we have that hardened, decentralized version of PoolTogether we can really lean into. I think it’s time to say goodbye to the governance experiment for good. At the end, we were probably down to about 10-20 voters, if we were lucky. No need to carry that unnecessary baggage anymore. I even think governance came in clutch the last 6 months or so, it deserves credit for where we are today, no doubt. I just don’t see it being impactful anymore, though, only a burden with an ever-decreasing value proposition.

@Brendan

Call-to-action

I would like everyone’s feedback on this. This program can be rolled into the proposed efforts by our teams in the upcoming PTBRs for Q3, so we can get started on it right away.

Let’s get to it! I am curious on where we’ll land on POOL distribution respective to each chain. Of course Optimism is already incentivized by OP, meanwhile Arbitrum and Base are not incentivized in the same way (there’s some incentives there already, but small). I think the drip will likely focus on those chains more than Optimism?

I am sure the teams will have all sorts of opinions about how to go about distributing POOL in the most effective way possible.

In terms of the proposed Automated Program, I assume the below still stands?

@Brendan

I think our POOL distribution should be automatic by being based on the yield contributed by each vault. This will allow us to distribute POOL in a permissionless way, and in a way that is fully automatic and durable. Anyone can spin up a new vault that receives POOL in proportion to how much yield it contributes. Long into the future.

I think @underthesea would be fond of that. After all it’s the yield that gives us prizes, not necessarily the TVL. I think incentivizing yield contributions in the automated program will be critical and definitely the optimal approach.

In any case, I’m personally loving V5 and I haven’t been this engaged with the protocol since V3. It’s special and I want to see that reflected in the broader space. I love our niche but it’s finally time to get back to 2021 levels of protocol activity. Do we deserve it? A resounding yes from me. Everybody that contributed to the protocol over the years deserves massive props. It’s truly something special and was won over wading through a huge amount of adversity at times.

I think it’s high time we make a splash and kick-off the beloved fly-wheel espoused by our beloved lifeguard @Leighton. I think all the pieces are finally in place. As they: Let’s Get The Pool Party Started! @TheRealTuna