Since the inception of the CFG rewards program, a total of 19.5M CFG have been awarded to both AOs and LPs. To pay out these rewards, a total of 15M CFG have been minted. This means that the CFG allocated to rewards has already run out and is now in a negative balance of -4.5M CFG leaving people unable to claim their rewards. I am proposing to mint a total of 5.5M CFG as a stop gap so claimants can receive their previously earned CFG rewards and the protocol can continue rewarding users for a short amount of time till a new reward framework is proposed. Given the urgency of the situation, I will be working to propose these changes to the council today. While this proposal is not intended to allow for direct community feedback on the number of rewards minted, the community will have the option to vote yes or no on the proposal once the council approves it. I strongly encourage continuing the discussion on future adjustments to the program in the coming weeks before the rewards run out again.
Proposal to be submitted to the council
The proposal I want to put forward to the council is the following:
- Mint 5’500’000 CFG into the rewards account (set the balance to 5’532’000 CFG)
Background on the reward changes
The index service (”subgraph”) based on The Graph Centrifuge uses for aggregating data on Tinlake failed recently. The team keeps backup infrastructure in place for these cases, but unfortunately the backup subgraph did not entail the latest reward change (technically, the split of TIN and DROP reward rates). Thus users were able to claim CFG rewards till the team could remedy the situation.
The team was able to solve the issue and upgraded the infrastructure to a more recent version of the Graph. Unfortunately, the process took longer than expected and the rewards minted by the protocol ran out. This has led to a significant negative balance that needs to be topped up asap so users are able to claim the rewards they have been waiting for.
Scope of the proposal
This proposal is meant as an emergency stop gap to back fill the already earned rewards and give us a small amount of breathing room before someone proposes a new forward looking reward structure. The proposal is not meant to service any new initiatives and is only intended to settle CFG reward balances already awarded.