Good day Community!
Proposal type: CP-4
Authors: Governance and Coordination Group (@ImdioR @rhano)
Contributors: Governance and Coordination Group (@ImdioR @rhano)
Technical/non-technical proposal: technical proposal
Date proposed: 2022-12-16
Short Summary
- Renewal of incentive rewards for the Tinlake
High-level objective
- This proposal is for minting 1,800,000 CFG into the Tinlake rewards account. Keeping the same rewards rate for TIN,DROP, AO as before.
Background
To date Total Rewards 23,821,073 CFG has been awarded to both AOs and LPs on Tinlake, currently, CFG 628,868 is available to be distributed to Tinlake investors, which means we are nearing the end of the current rewards allocation. With the current TIN/DROP Rewards Rate and TVL, these awards will last approximately for the next 35 days.
Despite the fact that Tinlake TVL decreased in the last 90 days, we would like to propose minting the same amount of CFG rewards. There are a few reasons for this:
- The possibility of onboarding new pools. We would like to keep a small margin in order to cover any new onboarding or fast-increasing Tinlake TVL
- Avoid reward deficit and guarantee regular rewards claiming for Tinlake investors.
- Taking the governance process (off-chain and on-chain voting) into consideration
Detailed description of proposal
We would like to propose to mint and allocate an additional 1.8M CFG towards Tinlake liquidity rewards and keep the same rewards rate for TIN/DROP/AO (Council motion 18).
Approximatively an additional minting of 1.8M CFG with the current actual Rewards Rate and TVL will cover the upcoming rewards for the next 100 days from one side and will permit keeping inflation under 2.5% and remain responsive to any change to the external market conditions from another side.
Proposal Parameters
The proposal being put forward is the following:
1. Mint 1’800’000 CFG into the rewards account
2. Keep the same rewards rate for TIN/DROP at 0.0003 CFG
3. Keep the same rewards rate for Asset Originator rewards at 0.0000 CFG
Change or improvement
Mint approximately 1’800’000 CFG into the rewards account.
Responsible
Alignment to the mission of Centrifuge DAO
Minting of requested tokens as rewards will help to support the overall goals and objectives of the protocol. For Lenders on Tinlake, this will provide an opportunity to earn a return on their investment, which in turn will ensure that borrowers can still access capital transparently and cost-effectively.
The RFC will be open for minimum 7 days.
Looking forward to any feedback and any concerns that you might have with this proposal.
Next steps
If this proposal passes all steps, it will take around 21-28 days for it to pass and the rewards will be minted shortly after.
If you have any questions or comments, please reply to this post.
Thank you for your attention.
