OIP-11: Reducing reward rate

SpacemanJeff

It sounds like a harsh reduction on the surface, but after popping 0.5% rebase into the calculator it's not too bad. Especially with the increased price stability, and potentially upside from reduced selling pressure by whales, it should bring.

In favor.

Plus locked staking will likely offset much of it for those of us willing.

therivshow

SpacemanJeff I could be wrong but my understanding is that the reduced rewards rate that is being discussed here would be the max rate in regards to the max locked staking time domain. So if/when locked staking is launched and hypothetically everyone locks for the maximum time domain, the APY would be the the 20-23k discussed here. Again I could be wrong but just reading the posts and comments, that is what I gathered.

GAC43

I fully support this proposal. If voted on, would the 3 week reduction begin immediately or on a set date? Thank you for your tireless efforts, team.

abipup

ChadwickTheCrab rewards amount and locked staking are a bit independent; locking won't change amount of rewards emission, only how that # OHM is distributed per epoch.

abipup

Ananth imo we shouldn't have a target APY, only target rewards rate and runway.APY was good for bootstrapping, but now we need to focus more on bonding and attracting external capital, which requires more stability and lower emissions.

Ananth

abipup Aren't rewards rate and APY interconnected?

JFry4

Ananth Yes, but the rewards rate is just one lever that affects the APY. As to you earlier questions, in my view everything should be incremental. Make an adjustment, measure its results, discuss, propose, release, rinse and repeat. There is no target APY. Just an end goal. To become Ohmnipresent.

This is the first step in the next phase of Olympus' growth.

fakeSavian

Im for the reduction, but can it be a little further down the line? Starting in August or September?

JFry4

fakeSavian Why? What's the argument for delaying?

Zeus

In favor of this proposal, glad to see alignment in comments thus far and grateful for the hard work of the policy team in putting this plan together.

JFry4

therivshow Yes, I believe you are correct. However, your hypothetical is really dependent on the staking distribution.

CMill

Let's do it.

cabanaboy1977

I'm in agreement. It would be nice if we could wait a month before we start the reduction though. Let the FOMO set in.
Also how does this relate to the increase in APR/reward for locking staking? Will there be further reduction to the APR/reward when locked staking comes out or is this it? And then locked staking will be a better APR/reward?

MrMochi

Overall I'm also greatly in favor of this proposal. But we do have to keep a tight eye on people unstaking and selling. 20K APY is still a great return for a relative safe farm. But greener pastures are definitely around although at higher risk levels. We might see some turbulence in the coming weeks because of this? Maybe a slower decline in APY helps to ease into new levels? But at the same time three weeks is an eternity in crypto and we are at a unique position at the moment of already having had a big sell-of and new partnerships coming to fruition.

Bonding can become more attractive through this proposal but at a lower APY we'll have to see if people actually 3,3 afterwards. If not we might see significant downward pressure of people bonding 5 days and then selling their arbed Ohm?

I think with the other potential improvements (such as transferable sOhm and Rari) coming down the road we will have more incentives to keep people 3,3 without the need for a monster APY.

Just my 2,2

Dudemyguy

MrMochi

MrMochi Bonding can become more attractive through this proposal but at a lower APY we'll have to see if people actually 3,3 afterwards. If not we might see significant downward pressure of people bonding 5 days and then selling their arbed Ohm?

Every bond also extends the runway though, so if people are bonding and selling, they are taking a small short term profit (sell pressure), but they are giving up their rewards to the treasury and the stakers. This extends the runway and in turn potentially makes market buying and staking more desirable. (buy pressure)

pipoctopus

I'm in favour of this proposal 👌

Mvd47

I agree, but i think it needs to come with an easier buying/guide proces for people New to crypto in order to grow. The current userbase hasn’t got enough time to bring people/friends to the protocol. The staking currently is a great usp to bring New people into the comunity and stir A hype in order to create more liquidity. I would suggest lower the rebase while giving people the option to lock their staking for a couple of months/year to regain the 0.6 that they initially got in on. Transparancy is key in this fase.

uliner

@shadow well written. I’m in favor, but would a reduction this significant really only put us at a 200 day runway? Doesn’t feel like superrrr long term planning. Just kicks the problem down the road for a little bit… idk. BUT THAT’S FOR FUTURE US TO WORRY ABOUT. Present me is wholeheartedly in favor

_mp_

uliner It doesn't just increase runway in the moment, it also makes us cash flow positive and should increase runway further over time. Essentially less spending + same revenues => more treasury == more runway over time as well. In favor of this proposal 🙂

Hopepope33

In favor of this proposal since it improves the long term fundamentals of the project.

fakeSavian

JFry4 while we are all here for the good of the project, I think we all have the intention of collecting as much OHM as possible. Keep the high apy for a couple more months is a reward for us early adopters and incentive for new comers like it always has been.

therivshow

JFry4 yep completely agree. Just wanted to make sure people understand that if/when lock staking happens and they lock for the max time, they are not going to get 100k% APY. At any rate, I am 100% in support of the reduction of rewards for the greater good.