Hi @yesyes, thanks for your proposal.
There are some incorrect statements and figures provided in your proposal that need to be amended should this topic be critically discussed by the Stargate DAO. To address these, I’ve broken my response down by segment:
Introduction
Stargate has accrued a significant amount of POL and will continue to do so. However, with the emergence of Hydra, resulting in liquidity pools and emissions soon becoming irrelevant, the amount being routed toward this POL accrual should be examined.
The emergence of Hydra doesn’t make liquidity pools irrelevant, in fact, Hydra is backed by and built on top of Stargate’s unified liquidity pools. Likewise, emissions are also not made irrelevant by Hydra, but rather can be deployed elsewhere to drive more protocol locked liquidity to increase the overall demand for Hydra itself, as can be seen in the HEP-1 proposal.
Background
Since its inception, Stargate has amassed nearly $50 million in non-STG tokens through POL accrual.
Here, you can check the Artemis “Treasury” tab for the correct figures, if you need any clarification, feel free to ask. Artemis Dashboard
Proposal
Currently, 3.7bps of fees go to POL whereas locked stakers only receive 1bps. This proposal suggests 70% of total fees go to stakers instead and 10% of total fees continue to pool into POL accrual. Partner allocations should stay the same, at 5% of fees.
This is based on Stargate v1 fee schedules. For Stargate v2, 1/6 of all protocol fees go to stakers and 5/6 goes to the DAO Treasury.
This increase in fees will most likely be highly beneficial, heightening interest in the protocol, while rewarding long term participants.
At the Stargate Foundation, this is something we’re open to discussing as well as other active members of the community that have also expressed an interest in this line of thinking. Further discussion from active members on this topic to help ensure we have the widest perspective possible will be required to advance this proposal.
Conclusion
especially with the exciting new advancement, Hydra, that will soon make emissions, POL, and liquidity pools obsolete.
As mentioned in the first segment, this is misleading and would be more appropriately worded to reflect emissions having been switched off as a result of Hydra’s adoption, removing the need for traditional LP on Stargate.