SIP-2017: Stop legacy Volume Partner rewards
| Author | Artsychoke |
|---|---|
| Status | Implemented |
| Type | Governance |
| Network | Ethereum |
| Implementor | TBD |
| Release | TBD |
| Proposal | Loading status... |
| Created | 2023-05-11 |
Simple Summary
Stop L1 volume partner rewards and re-distribute the 10,000 SNX monthly rewards to stakers
Abstract
The Synthetix DAO currently distributes 10,000 SNX tokens pro rata per month to all L1 spot partners. This proposal suggests that these rewards are halted, and distributed directly to stakers instead.
Motivation
The current distribution of 10,000 SNX tokens per week to volume partners for spot on L1 has been ongoing for some time, but it doesn't seem to have a significant impact on trading volume and on drawing new partners for L1 spot trading. This distribution system may not be an efficient use of the tokens, and the tokens could be put to better use by directly incentivizing SNX stakers. By incentivizing SNX stakers, the proposal aims to increase the number of SNX tokens held for more extended periods, thereby reducing selling pressure and increasing incentive alignment.
Specification
The proposal suggests that the Synthetix DAO stops the weekly distribution of 10,000 SNX. Currently, 10,000 SNX of the minted weekly supply go to a TC controlled address for the distribution. After the implementation of this proposal, the 10,000 SNX would be distributed directly to stakers via inflation rewards.
Copyright
Copyright and related rights waived via CC