Based on the previous proposal to restructure Tinlake Rewards and the discussion in this RFC: LP Rewards Restructuring Part III , following recommendations and governance process we would like to ask Community vote via off-chain voting.
Thanks to everyone who inputted and provided relevant feedback!
The poll is open until 27/07/2022
Poll description:
1. Mint 2M new CFG for rewards
-Yes
-No
0voters
2. Remove AO rewards:
-Yes
-No
0voters
3. Lower Tin rewards to 0.0003 CFG per DAI per day
Although it doesn’t change the outcome of the poll but maybe @JesusGuijaro can clarify if he voted “yes” or “no” on the last question?
Most likely “yes”
Yes - this is to mint new rewards tokens, which have run out
No - Im on the fence about this, the rewards here are minimal, but I believe it helps some AOs to cover the cost and the extra work required to use Tinlake. Furthermore, we just had a poll on this, and it did not pass, nothing changed since then to run the same poll again.
No - now is the wrong time to lower rewards. Its next impossible to get any investors to come in, and rewards could be used to incentivize them to take the extra risk costs related to using blockchain.
No - I believe we should increase Drop rewards, not lower them, to bring in new investors on that side. We have not had a new Drop investor come into our pool in months, though we do a lot of marketing.
Overall, I believe now is the time to ramp up and bring new investors, even if it comes with high inflation. Once markets improve, rewards can be lowered.
After this poll closes, I will reach out to AOs to get a vote on the items that pass, and vote with the majority on the Council.
I agree with the AO reward but disagree on the reward side, the token price has already been bash to the ground, and I believe that especially in crypto/blockchain industries, fundamental (TVL) tend to succeed from price. We need to start to curve the inflation by burning and reducing the reward rate…And get some other utilities for the Token.
That being said, I understand your point about getting new investors, but I don’t feel that the reward is the only way to get some new peoples investing in some pool.
Some Ideas:
More Marketing toward pool investor (Exemple:Yield on Centrifuge on DAI is much more higher in average that what you can get on Compound)
More integration with DEFI analytics tool: (Show the average yield on Centrifuge on website that are specialized in “comparisons” “analysis” for example: Loanscan/DefiPulse / IntoTheBlock etc, etc…)
More analytics for the Centrifuge platform (Create a page on Dune Analytics for example )
-Things that are in work and should help getting new investors: Better UI/Better KYC onboarding/ KYC normalisation in DEFI (should be a Trend, not a Centrifuge specifics thing)
Anyway, I don’t feel like reward are that attractive to investor and regarding the past performance of the CFG Token, I don’t feel like you can push for more inflation and I’m sure there is some other way to bring new investors on Centrifuge…
I like those ideas, of course, utility is most important. However, all of these will take time to develop. I dont believe a reduction in rewards now will lead to a higher token price, as its driven by macro market dynamics. In the long term, as the protocol matures and has a sizable echosystem, rewards should be reduced. I dont believe we are there yet.
The token utility is one of the biggest factors to influence the growth of the protocol and the token price. Currently the biggest use cases for CFG are a) paying for transaction fees and b) voting in governance proposals.
Although these uses cases are important, it’s not critical enough to attract many new investors right now. Especially the burning of CFG for every transaction on Centrifuge chain does, for the moment, not help to reduce the total supply significantly.
Therefor two governance proposals are in the works and could help to increase the token utilitiy:
It would be great to see more pool investors (not token investors) vote and express their opinions on this. It seems the vote is mostly across the team and token investors and AOs, and we already know their motivations. Would be great to hear from investors in the pools to see how important or unimportant the rewards are to them.
This is a relevant point, although from what I see, there are numerous Token investors who are also Pool investors participating here. However we can try and get more exposure to this proposal to reflect a wider range of viewpoints.
The idea of a decentralized governance is that EVERYONE raises his/her opinion and participates by voting in polls and referendums. Therefore we highly encourage the whole community (Issuers, Tinlake investors, CFG investors) to vote!
Yes, absolutely want everyone to voice their opinion and vote. We do have a few (from what I can tell) pool investors voting but I am not sure if we have heard enough of their voices to get a sense of what is important to them, as they are a very important ecosystem participant.
TVL is priority. Like other pools, we have seen no new investor subscriptions in months. Taking away incentives for investors now is illogical. The value of CFG in the long run will certainly be driven by its utility but we as a community need to first focus on increasing adoption and increasing TVL.
In this environment we should see a flight to safety in RWA’s. What can we all do better to increase adoption and TVL so that CFG has actual utility?
Remember, that you don’t lose your CFG tokens by voting on referenda - they are just locked for the duration of the vote. After that, they will be available for transfer again. You can make your vote count for more by voting with conviction which means that you can vote with up to 6X the amount of tokens you have, by locking them for a longer period of time. Thank you for your participation and voting.
Vote with your CFG tokens here: