SPELL Farming Reduction and Supply Burn Proposal!
The following proposal is to implement a 20% reduction across all farms, starting from the 1st of November where the emissions that were intended to be used are burned. Please see the details below.
The Current Situation:
The current emissions have a target of 1,451,876,730 SPELL tokens to be allocated to farms every week. We usually balance the relative percentages on a weekly basis, to better follow the market and pursue new opportunities.
As of the writing of this proposal, 1,230,647,035 SPELL are already allocated and weighted across pools as follows:
An additional 221,229,695 SPELL per week are currently unallocated (hence not minted), and are considered for accounting purposes (add new pools and edit the current pools without exceeding our target of 1,451,876,730 per week)
The original plan was to keep the current emission schedule the same until the 31st of May 2022 (1 year from the start of the mining program). To get to that date, we have 33 more weeks of emissions. At the current rate, this results in a total of 47,911,932,090 SPELL to be emitted until the end of the 1st liquidity mining year.
Given the extraordinary adoption that MIM and SPELL are seeing, the listing on central exchanges and the liquidity depth of our DEXs pools across chains, we believe that there is no need for such a high emission schedule. We can therefore look into a reduction of the number mentioned in the previous paragraph.
In order to address this, we propose the following:
We will keep the emissions steady for the next 3 weeks (total of 4,355,630,190 SPELL) and then reduce all pool allocations by 20%. We will subsequently burn the tokens coming from this reduction.
From the 1st of November, the per week emission target will be moved to 1,161,501,384 SPELL per week, reducing all pools allocations by 20%.
Using the current regime as an example, we would have 984,517,628 SPELL per week allocated, and 176,983,756 SPELL per week unallocated, which would leave plenty of room for new farms, incentive boosts or any new farms required!
This would result in 34,845,041,520 SPELL being emitted from the 1st of November to the 31st of May 2022.
This reduction would bring the total amount to be emitted from now until the 31st of May 2022 from 47,911,932,090 to 39,200,671,710 and would result in a reduction of 8,711,260,380 SPELL tokens.
Given the depth of the protocol reserve, we do not feel the need to use these tokens for any particular marketing effort, team reward or other actions.
We, therefore, propose to burn all 8,711,260,380 SPELL on the 1st of November 2021.