SIP-2019: Stop Curve 10,000 SNX inflation rewards

Simple Summary

Stop the weekly distribution of 10,000 SNX tokens to Curve LPs and instead distribute them directly to SNX stakers.

Abstract

The Synthetix DAO currently distributes 10,000 SNX tokens per week from inflation to Curve LPs. However, this distribution of SNX tokens doesn't have a real impact on liquidity and would be better utilized by distributing them directly to SNX stakers. Additionally, with atomic swaps not being the main driver of volume for the protocol, directly incentivising curve pools should not be a priority.

Motivation

The current distribution of 10,000 SNX tokens per week to Curve liquidity providers has been ongoing for some time, but it doesn't seem to have a significant impact on liquidity anymore. 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