PDP 27: Extension of reward distribution

Posted on behalf of the mStable ProtocolDAO

Simple Summary

It is motioned to extend the MCCP 4 reward emission window for another 6 weeks. This extension will run from July 19th, until a final distribution on Monday, August 23rd, 2021, and consists of 6 weekly emissions. The amounts to be distributed weekly are to be decided in this vote.

This extension is only an interim solution and is subject to be replaced by a long-term emission plan for MTA.

Abstract

MCCP 4 proposed a prospective emission schedule over the next few years and a set of rules to follow in order to calculate weekly distributions. MCCP 4 sought out to bring all the incentives “in-house” and to create better circular effects while reducing MTA sell pressure and maximizing TVL. It laid out an emission schedule and a set of rules to follow in order to calculate weekly distributions. A key aspect of this emission schedule was to front-load the emissions until 19th July 2021. Additionally, it was specified in the following years to ramp down the emission until 2027.

MCCP 7 later amended it and carved out a portion to distribute on Polygon.

This PDP proposes to extend the reward emission window for another 6 weeks. This extension will run from July 19th, until a final distribution on Monday, August 23rd, 2021, and consists of 6 weekly emissions.

The weekly emissions are to be decided in a vMTA vote on Snapshot and the following choices are available:

  • 276,923 MTA weekly (current emission number)
  • 242,308 MTA weekly
  • 207,692 MTA weekly
  • Another amount/reject extension

Motivation

This is being done as a stopgap measure to allow the mStable core contributors, community, and Governors to reach a consensus on a long term emission plan for MTA that factors in more complex factors such as a longer reward emission epoch, staking v2, and a data-driven approach to how MTA rewards are accruing value to the mStable protocol.

Next Steps

This proposal will be taken to snapshot vote on Monday, 12th July 2021, due to the time-sensitive matter. Voting will be open for a 5 days window to give adequate time for a concurrent discussion. Governors can change their vote at any time should the discussion sway their decision. We look forward to hearing what MTA token holders have to say and seeing how they cast their votes.

The vote is live here: Snapshot

Here are the 3 distribution weekly numbers visualized:

276,923 MTA weekly:

242,308 MTA weekly:

207,692 MTA weekly:

1 Like

As mentioned in the other thread, I’ve changed my mind from my initial choice of option 3.

This is after some modelling to factor for the BD and partnership commitments in the pipeline, and the MTA promised for these collaborations (across both Polygon and L1) I have changed my vote to 242k MTA per week as initally proposed.