I’m creating this thread to summarize all the discussion around proposal 2 that is live for voting now:
Proposal 2 would change the current reserve rate from 0% to 5%. The “reserve rate” defines a % of the accrued interest for every prize pool that is kept in the prize pool when the prize is awarded. The reserve is captured as “sponsorship” which is money that continues to contribute interest to the prize but is NOT eligible to win. This increases the effective return rate for all depositors.
It is possible in subsequent proposals for governance to remove the reserve from the prize pool it has accrued to and use it for other purposes as governance decides.
Discussion and Poll
VOTE: PoolTogether Vote