Author: Sperax Core Team Reference: Current docs, SPA Gauge, SIP-32, SIP-33 Created: August 15, 2023 Labels: Product-Features
Earlier in 2023, SperaxDAO decided on the SPA budget for emission through Gauge (SIP-32) and redirecting veSPA emissions to bribes on Gauge (SIP-33). Every week, Gauge emits 2.9 M SPA and veSPA voters are bribed 383K SPA. This SPA should be used more prominently and assertively to drive USDs growth and bring new adoption.
Since the start of SPA Gauge, USDs total supply has decreased from $2M to $1.78M. In the meantime, SPA Gauge has emitted about 80M SPA amounting to $392K. The SPA circulating supply has increased from 1.593B to 1.658B.
Emitting SPA in a predetermined manner and without assessing the market dynamics is improper utilization of resources. Since our target is to increase USDs adoption which will help in growing the Sperax ecosystem and its participants, we must rethink our overall strategy.
Apart from maintaining the target to make SPA deflationary, SperaxDAO should ensure that the emission is invested back into the ecosystem and contributes directly towards increasing the USDs adoption and supply.
All SPA emissions should have a looping effect such that a good portion of SPA distributed should be invested back into the ecosystem in the form of veSPA and increase the burning rate of SPA. Since the emissions are not helping in increasing either USDs adoption or the locked tokens. The recent increment in veSPA numbers is primarily driven by the team token allocation in veSPA. The Sperax ecosystem is steadily moving towards complete decentralization of protocols and hence should have more governance participation.
The Sperax ecosystem should have a new reward token. A token which can be staked as veSPA or redeemed for SPA. After drawing some inspiration from the Camelot emission strategy, the core team proposes the launch of a new token called xSPA. Users can either stake 1 xSPA for one veSPA or redeem 1 xSPA for 1 SPA.
Users can redeem 1 xSPA token for SPA by depositing their xSPA token through the redemption contract. Users can stake 1 xSPA in veSPA to increase their staked SPA balance. The relation between xSPA, SPA, and veSPA will be governed by the following rules
Launch new xSPA token as per mentioned specifications
Continue as it is without the new token