MDP20.3 - Changing the transition period for the reduction of MTA/WETH Earn Rewards

Summary

As successfully voted on in MDP-20.2, it was decided that the MTA rewards for the Uniswap MTA/WETH Earn pool would be gradually wound down over the next 4 weeks.

Due to continuous feedback voiced in this forum post and signers of the mStableDAO that the initial timeframe outlined in the proposal was being too quick and drastic of a change for the ecosystem, the mStableDAO proposes that the initial transition period set out in MDP-20.2 be re-evaluated and extended.

Specification

This proposal suggests that we increase the winding down period of current MTA emissions from the initially proposed 4 weeks to a longer term in order to grant additional time and buffer to ecosystem participants during this transition period.

Rationale

This is being proposed in order to increase the time LP positions in the MTA/WETH Earn pool have to make an informed decision, and grant time to observe the impact this change in emission schedule has on the liquidity and farming opportunity of the Meta token.

Additionally, this will give more time to observe if the new MTA/DAI pool described in MDP-20.1 will have the desired effect to offset the predicted MTA liquidity loss, or if additional actions are necessary.

Conclusion

The mStableDAO is very much aware that the reduction in liquidity mining rewards for our main MTA pool will have serious repercussions across the wider mStable market, so we wish to give enough time to observe the effects in greater detail and, if necessary, be able to intervene with adjustments to offset any extreme changes in volatility of price of the MTA token, which the current timeframe does not allow us to do.

The proposal is now live on Snapshot, and voting will close on the 15th of April.