[Discussion] Introduce partial vesting to MTA's EARNed

Summary:

Put a % amount of MTA in a vesting basket for a term of X months for EARN users. The vesting basket will be use as collateral in the event of a un-peg. Secondly, it will reduce amount of MTA trade-able by a fix percentage, reducing dumping of MTA.

Abstract:

Take the USDC/mUSD pool for example
Scenario 1:

  • Currently with 10k MTA distribution
  • 5k MTA goes into investing basket for 6 months
  • 5k MTA is claimable immediately

Scenario 2:

  • Increase MTA distribution for 10k MTA to 12.5k MTA to counter act the vesting period for LPs that want immediate payouts
  • 5k MTA goes into investing basket for 6 months
  • 7.5k MTA is claimable immediately

Motivation:

  • Stable amount of MTA available quickly to fix the peg
  • Reduce dumping of MTA.
  • Promote longer term investing

Pros:

  • Above

Cons

  • The vesting period for LPs. May need to increase the amount of MTAs distributed to counter this.
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I like the ideas, but negative incentives can be a powerful motivation for avoidance. If other projects aren’t imposing a vesting schedule on yield farming, then it will dissuade LP participants. They’ll go elsewhere.

Perhaps there could be a voluntary lock of MTA for the beginnings of governance signaling/voting.

There could be a small return of additional MTA for such a lock (say 5% return on MTA for a 90-day lock).
This is how it is done for several projects in which I participate in governance. Voluntary lock for a specific time period, but with benefits.

1 Like