The poll shows it is clear the community agrees that as the 1 million prize bonanza comes to an end we should re-evaluate the treasury spend, opting for less of a subsidy. I think it would do us well to reframe the change in prize distribution to be “continuing to offer returns 2-3x Aave” instead of “reducing the subsidy 40%”, even if on-net the result is the same.
I have spoken with several people about a new tiering and distribution recently and came to the conclusion that there are two contentious issues.
- Should we continue $1 prizes
- Should we change the prizecap from 1 to 2
I suggest we have polls for each of these issues. I’m not sure if we should use a new thread or have those polls in this thread. In my opinion contention in the DAO can be a good thing. Let’s engage!
Votes on polls should be considered from known-members of the DAO. There should be clear consensus to change the status-quo, like 60%+ to eliminate the current $1 prizes.
In regards to the proposed tiering in the google docs; I found through simulations that it did not proportionally reduce the net result for whales. I think this is an unintended outcome. I also did not see how the prizes were a 40% reduction in spending, but there are a lot of moving parts there so I likely did not fully grasp your calculation method.
I think users are looking at three metrics. Total prize distribution, prize yield, and odds. Personally I would like to see us target a 15% prize yield. I think this is pretty close in-line with the 40% reduction proposed in this thread. With the prize cap and tiering we can have the 15% diminish towards 6% as the deposit amount grows to whale status ($1 million and above). By keeping a similar total number of prizes we can keep the odds in a similar range.
The prizecap allows us to keep the prize distribution big, but cut a little more of the treasury cost. In my opinion a prizecap of 1 makes the most sense. Two prizes a day just makes people wonder, why never 3? One is natural. The second prize that people win is effectively farmed yield straight from the treasury. Drcpus numbers show that despite wallet splitting the prizecap benefits the treasury and smallfish.
Lastly I think we should split the $2500 into 3x$1000 prizes and have zero at the top. I think there is consensus for more big prizes and to tilt the tiering so that more depositors are outsizing their deposits with wins. Let’s lean a little more towards a feeling of winning exciting prizes and away from yield (2 prizes a day).