Not sure if this is the right place to post a discussion on this topic, but here goes. I did make some comments on the discord but I think this deserves a more formal recording.
I did not vote in the temperature check but am considering voting against this proposal. I believe I actually proposed the renewal of these rewards previously at least once with PTIP-70. Now the cases against renewing are starting to build and I’m not seeing great arguments to continue this program. It would be nice to hear from folks who are participating in this liquidity mining campaign as to why they think it should continue.
To clarify this point, of the V2 liquidity on Mainnet, only 57% of it is staked for rewards today. That means if all of it removed as a result of expiration (that would not happen) we would still have 43% of the liquidity we have today. In addition we have a pretty good setup on Polygon that supports the token.
This is the staking POOL with $136k in LP value staked.
This is the LP with $236k in liquidity
The last time someone put meaningful liquidity in the staking pool was 115 days ago. So this program is pretty stale. That meaningful amount was less than $2k in value.
We recently went through a similar scenario with the pPOOL rewards expiring. There was a lot of fear that it would result in sell pressure on the token. But since those rewards expired (around early July?) the price is up over 50% in dollar terms.
The cost of this program seems to not be fully recognized or rationalized. 150 POOL per day means 55k POOL per year. For context that means we are paying $55k+ per year for $136k in liquidity. It’s kinda money printer gone wrong in my opinion. To put it bluntly, I don’t believe we are a 30 day ponzi protocol.
The rewards have already expired. I alerted governance of this two weeks ago. Now that they are actually dry, will a 60 day “please don’t sell” change the ultimate outcome? There seems to be consensus this program will be inevitably deprecated. Does delaying the inevitable change the end result? Or does it just add the fuel of 9000 POOL to the fire? (150 x 60 days)
Uniswap V2 is inefficient. V3 has been out for 16 months. Crazy, right? We do have a proposal for a V3 solution that could go live today, but we would like more feedback from the community.
I hope to hear more of why this is a good idea now.