RGP-31: Cut Ribbonomics Emissions

Proposals
1

Summary

The Ribbon DAO currently emits 250K RBN in rewards per week to the options vaults, based on the tokenomics plan implemented last February [1]. Although at first it aided in TVL growth throughout 2022, it no longer achieves this goal. Emissions are being distributed without much benefit to the protocol.

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We believed that this may become a reality back in February, which is why we made it clear in the original Ribbonomics proposal that if we find that the current system does not work for the Ribbon Finance protocol and community further down the line, no matter how unlikely, we will have the option to abandon it if the community agrees.

Proposal

We propose the following options:

  1. Cut emissions from 250K RBN per week to either 0%, 25%, 50%
  2. Maintain the same penalty (no unlock), adjust the penalty to be proportional to the emissions cut based on some multiplier, or remove the penalty (full unlock).

Conclusion

This proposal will also serve as a starting point to re-evaluate the effectiveness of the Ribbonomics system as a whole - and may lead to further tokenomics changes down the road.

Voting

This proposal will be posted on the forum for 1 week prior to voting. Voting will then be open on Snapshot for 5 days. This vote will be a multi-choice vote between the two most popular emission rates discussed.

References:

  1. Ribbonomics
1 Like
2

Emissions certainly need reducing. But allowing unlock will bring lots of supply back on the market.

Are there other means of reducing emissions we could consider?

1 Like
3

Wholeheartedly agree with this proposal. fee distribution and autocompound contracts should be done similar to looksrare imo. Curvestyle locking mechanisms are useful in some sense but not the solution we need.
@bberry259 the price could dump short term if some long term holders lost conviction but if it leads to better tokenomics dump would be short lived. Also weekly/daily buyback would create buy pressure.

1 Like
4

Agreed with both points. Current emissions gauge serve no purpose in attracting/retaining TVL, we can cut it entirely. As for unlock, maybe we can do a small amount of RBN emission for those who choose to remain locked?

5

We know this vote is passing. Emissions will be cut. Needs to be a hard cut to 0. If its not equitable to engage in vaults, emissions wont change that. Face the music.