Summary
Adjust reward rate to the minimum of the current range according to OIP-18. That would be a 0.1587% reward rate, which translates to around 1,000% APY. The adjustment would be spaced out across 4 weeks with the reward rate adjusting each epoch.
Motivation
Over the last year, Olympus has seen enormous success. The protocol has grown in strength financially (via its robust Treasury), technologically (through the introduction of innovations such as bonds and Olympus Pro) and influence. We have been in the current supply range as per OIP-18 (1m - 10m total supply) for around 4 months, and have not changed the reward rate since that proposal passed. It is preferable to continuously match the growth of the protocol with the growth of supply through the reward rate and not have the discrepancy shown through the price as that causes not only volatility on the market, but in our revenues as well.
Currently, we have to collect >$2m per day in RFV via bond sales just to maintain the runway. Adjusting the reward rate will allow us more flexibility with our bond capacity, as opposed to devoting so much revenue to RFV.
Also, the DAO is constantly looking for and building diversified income streams, such as LP fees, Olympus Pro, Incubator, yield farming with our Treasury and other activities. A lower reward rate will make it easier for Olympus to maintain its runway (with non-bond revenue).
Proposal
Adjust reward rate to the minimum of the current range according to OIP-18. That would be a 0.1587% reward rate, which translates to around 1,000% APY. The adjustment would be spaced out across 4 weeks with the reward rate adjusting each epoch.
This adjustment would bump us up to a runway of 700 days and give us breathing room to continue growing Olympus in 2022 in a sustainable manner.
For additional context, be sure to read the previous reward rate proposals and their discussions:
https://forum.olympusdao.finance/d/77-oip-18-reward-rate-framework-and-reduction
https://forum.olympusdao.finance/d/37-oip-11-reducing-reward-rate
Vote
For: Adjust reward rate to 0.1587% of total supply (from the current 0.2975%)
Against: Do nothing