Fully support the reward rate reduction as outlined here.
However I have a couple questions for @shadow @abipup and whoever else wants to chime in regarding some comments surrounding our pivot away from bond revenues: In the long-term, I agree that it's wise to reduce bond capacities, pivoting to a greater focus on other revenue sources, which will help maintain health of the protocol. However, I'm concerned that it's too soon to be reducing bond capacities in a meaningful way given (1) non-bond treasury inflows are peanuts compared to what the treasury makes w/ bonds (Source: Dune Dashboard, Revenue (with LP market Value) - if this statement is inaccurate, then I think it speaks to the broader data issue we've seen recently where Dune Dashboard and Olympus Front Page metrics aren't remotely accurate) and (2) OHM market cap is reflexive - when Treasury inflows increase -> market cap increases -> higher market cap means more bond inflows (assuming no BCV changes) -> Treasury inflows increase further -> and the cycle continues. I have seen people reason that bond inflows are lower given (i) OHM's declining market cap and (ii) cyclicality of bond inflows resulting from broader market volatility, however I disagree with both statements given OHM's market cap (and ETH's) hovered around ATHs in the mid-to-late November period while bond inflows hovered around a 7-day MA of six to eight million $vs.$ 8MM+ for the entire month of October while OHM market cap was much lower. Have also seen people say that the sell pressure from bonds outweighs the positive benefits of increased treasury inflows. Can anyone provide data to back this up? OHM hit ATH's in market cap (and saw more price stability) right around the time bond inflows were near ATHs, so not entirely convinced that statement is true.
In summary, I'm concerned that it's turned into an echo chamber, with many parroting that we need to reduce bond capacities NOW (some have already been reduced recently IIRC), rather than wait until our non-bond revenues are actually meaningful. However the unfortunate fact is that non-bond revenue is tiny today and a further reduction in bond revenues will lead to even lower gross revenues, which, in my view brings into question OHM's valuation.
I want to make clear - this isn't FUD. I've voiced similar concerns in the past and rather than spark reasonable discussion, it gets met with a lot of anger. Genuinely interested in discussing / hearing answers to my questions as I think it's important (and if it's not, then please describe why it isn't) and would love to hear why I'm wrong as I've been an OHM investor since the first week of April and have been in full support of all the policy and protocol moves, until recently.