SIP-33: Redirect SPA from veSPA emission to bribes

Author(s): Sperax Team Reference: n/a Created: January 28th, 2023 (Updated Jan 31, 2023) Labels: Product-Features, Governance-Discussion

Simple Summary

In 2023, SperaxDAO must reduce SPA emissions and increase SPA burn. This can only be done by reducing unnecessary SPA emissions and increasing USDs circulating supply. Redirecting SPA paid directly to veSPA stakers to be instead used to bribe stakers is under consideration. Such a move will still deliver SPA to veSPA holders and will also solve liquidity needs for important Sperax pools.

Abstract

Every week, 383,550 SPA are distributed across SPA stakers. This SPA is sponsored by SperaxDAO treasury and doesn’t directly incentivize USDs circulating supply growth, the revenue driver of our ecosystem.

Motivation

Eliminating SPA emissions that don’t directly increase USDs circulating supply will reduce SPA sell pressure and eliminate a source of SPA emissions without decreasing the circulating supply of USDs and revenue of the protocol.

Ensure SPA/USDs, USDC/USDs and eventually plsSPA/SPA receive adequate emissions while veSPA stakers receive healthy SPA rewards from bribes.

Overview

Over the course of 2023, SperaxDAO has the opportunity to make SPA deflationary. To do this, SPA burned from the USDs revenue share + redemption fees must outweigh the new SPA entering the market. The SPA subsidy for veSPA doesn’t directly correspond to USDs circulating supply increase, so this should be eliminated to help achieve SPA deflation.

This SPA will be retained by the SperaxDAO treasury for bribing the upcoming SPA Gauge. The gauge will pay SPA to USDs trading pairs. This mechanism is designed to increase USDs circulating supply, increase DAO revenue and quantity of SPA burned.

This means that the 383,550 SPA that was once sell pressure, can be converted into bribe revenue for veSPA holders and increase USDs circulating supply.

Technical Specification

Stop SPA emissions of 383,550 SPA / week paid to veSPA stakers. Bribe veSPA voters with the 383,550 SPA / week for SPA and USDs liquidity. Bribe at the same ratio as current emissions (4:1 SPA/USDs to USDC/USDs) Bribe plsSPA/SPA pool once it's added to the gauge moving SPA bribes to 3:1:1 (3 SPA/USDs, 1 USDC/USDs, 1 plsSPA/SPA)

Voting

Yes: Redirect SPA from veSPA emission, use this SPA to bribe veSPA holders.

No: No change.

start

February 16, 2023

9:53 PM

end

February 19, 2023

9:53 PM

Voting

off-chain

Voting type

single-choice

Voters

7,321

Votes

464,954,961

Final Votes

closed

Yes

446.4M veSPA

96%

18.6M veSPA

item label

Placeholder title of a dao proposal

DAO name

0x000000000000

Mon 00, 2024 00:00

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