- Increase ZWAP / ZIL (pool 2) mining rate
- Don’t inflate other pool rewards when there are insufficient qualifying tokens
- Reduce round time to 30 days
- Reduce minimum vote threshold to 10%.
This proposal seeks to better protect ZWAP LPs who are the main protocol stakeholders to as well as to make it easier to introduce new incentivized pools, or adjust reward weightages.
The newly updated rewards are insufficient to incentivize deployment of capital by ZWAP LPs in Zilswap. As such, we propose re-increasing the ZWAP/ZIL pool incentives from the next epoch according to the schedule in the Specification section.
Further, we propose delegating all unused incentives to the ZWAP pool instead of distributing them to the various other pools. Should the proposal pass, the new weightages should be retroactively applied based on the previous voting results in the next epoch.
Next, to allow the community to more quickly adjust Zilswap incentive structure, as well as allow upcoming projects to rapidly join Zilswap with an incentivized pools, we propose reducing each mining round to 30 days (or more accurately, 4 epochs). This means that the next voting round will happen in 3 epochs, with the next pool rewards updated after the 4th epoch concludes.
Finally, to ensure lesser known tokens also have a good chance to get an incentivized pool, we propose lowering the voting threshold from 15% to 10%.
The new specification for liquidity mining will be as follows:
16 tokens pairs will be eligible to receive ZWAP liquidity mining rewards at point of time. Every 3 weeks, the eligible list will be re-evaluated to ensure that there is maximum capital efficiency for the ZilSwap ecosystem and a governance vote will be proposed to decide on the pool rewards. After every 4th epoch, the new incentive scheme will be enacted.
Every week, there will be 6,250 newly-minted ZWAP tokens allocated to liquidity providers on ZilSwap. The distribution of the 6,250 ZWAP tokens will look like this:
ZWAP/ZIL token pool
- Total 3,500 ZWAP
High-cap token pools ( Market cap > 100m)
- Total 1,500 ZWAP
- 5 pairs maximum, 300 ZWAP per pair
- If there are no 5 pairs, reallocate remaining to other pairs in high-cap. If there are no pairs at all, reallocate all to ZWAP pool.
Mid-cap token pools (5m < Market cap < 100m)
- Total 1,000 ZWAP
- 5 pairs maximum, 200 ZWAP per pair
- If there are no 5 pairs, reallocate remaining to other pairs in mid-cap. If there are no pairs at all, reallocate all to ZWAP pool.
Low-cap token pools (Market cap < 5m)
- Total 250 ZWAP
- 5 pairs maximum, 50 ZWAP per pair
- If there are no 5 pairs, reallocate remaining to other pairs in low-cap. If there are no pairs at all, reallocate all to ZWAP pool.
To be voted into each category as stated above, each token in that category has to garner at least 10% of the total votes casted for that category’s proposal vote. Otherwise, the reward allocation will be redistributed as specified above.
This will change the current rewards to:
ZWAP: 2077 ZWAP -> 3500 ZWAP gZIL: 1452 ZWAP -> 1500 ZWAP XSGD: 1452 ZWAP -> 1000 ZWAP PORT: 165 ZWAP -> 125 ZWAP ZLP: 165 ZWAP -> 125 ZWAP
Note that gZIL is moved to the high-cap category.
Please indicate your inclination below. If there is enough support, we can move to a formal snapshot vote.