The remainder of the APW airdrop was distributed to users who locked their APW, which additionally incentivised locking. According to the schedule of APGP 10, the protocol is still currently rewarding 7500 APW per month to lockers, and this amount was planned to be reduced to 5000 APW starting January 2024.
Proposal
We propose to set the additional APW distribution to lockers to 10800 APW per month for the next 12 months following the implementation of this proposal, and disregard the old schedule. By doing this, we would continue to incentivise the locking as well as mitigate the dilution of APW lockers.
Here is an estimation of the rewards to lockers in different scenarios:
Is it truly necessary to introduce additional inflation? Even if it is targeted towards holders aligned with the VE model. Do you believe that the utility of SIP 0 is not enough to attract token locking ?
This is where my other post on trying to make sure there are sensible fees in place is important. As it seems that higher inflation is being used to subsidize users of the platform so that fees can be kept very low but stakers apr is unaffected.
But, if APR was augmented higher with this SIP and fees were made reasonable so stakers could see value in staking beyond the voting. Then this would immensely improve TVL as the demand for APW would be high enough to outpace the sell pressure from lp farmers. Thus creating a positive flywheel effect seen in successfully done solidily protocols.
Hey @apwmaxi, thank you for your response! We believe it is complementary to SIP 0, representing a very low inflation but still allowing to align incentives in a more optimal way for lockers.
