SPS Governance Proposal: Turn on DAO LP Rewards
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Proposal
The SPS DAO is providing liquidity and not being compensated for the services it is providing. Liquidity positions are a risky investment due to the the potential of impermanent loss. The DAO should not be risking it's treasury and not be compensated. PERIOD. I propose that the DAO be given its share of LP rewards for SPS:BNB and SPS:ETH.
The top goal of the SPS DAO as outlined in it's whitepaper is as follows.
When LP rewards end in the future, investors will move on, which can have a severe impacts on the ability of the markets to function. It will be the responsibility of the DAO to take over these LP and provide this valuable service. This is a massive financial undertaking that will require years of preparation to position ourselves to do. We must start now if we hope to have a smooth transition.
Benefits
The DAO is providing the lion's share of liquidity for SPS:BNB and SPS:ETH (see below image).
These pools pay 2.6M SPS/month combined.
The DAO could be banking $20,000+/month in SPS (2,600,000 x 0.8 x $0.021= $43,700). This not only better prepares us for the future, but significantly reduces the supply of SPS that can be sold every month.
Final Thoughts
We cannot let the interest of investors seeking a ROI cripple the ability of the DAO to function in the future. These two LP are low-hanging fruit since only a small portion of investor liquidity is involved. The 10% are taking 100% of the rewards. I would urge members of the DAO to consider taking this further. With the implementation of DEC payments for Riftwatchers the DAO has accumulated over 10M DEC in a short period of time. We now have the opportunity to significantly increase our stake in DEC:SPS and DEC:HIVE. I will not propose that here, but this needs serious consideration to build upon this goal.
Thank you for participating in SPS DAO Governance @nebulusx!
You can place or monitor SPS Stake Weighted votes for and against this proposal at the link below:
Link to this Pre-Proposal
Updated At: 2023-07-18 16:11 UTC
even if the proposal fails. because the profiteers of the current situation are also at the same time some sps whales with a lot of vote power. maybe it will at least have the effect of opening more people's eyes for once to what is going on here.
people who are in favor of us paying more for everything are blocking the dao from making money and taking care of our future because it would lower their own profits........
Yes, I worry the investors can keep this from happening. Thus far the DAO earning any sort of return outside of in game sales has been stonewalled by greed. We need a strong DAO for the future of the game. I just hope people realize this before it is too late.
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This really should be a no-brainer, this proposal has my full support!
Let's see if we can get this to pass, hopefully some of the whales will see how important getting more funds to the DAO is for the long term health of the project.
Did you mean $20,000 / month in SPS? If so, can you please edit the post so that people aren't misled?
Otherwise I generally support the proposal - the DAO should be able to earn just like everyone else.
yes thank you
If this passes it will set a bad precedent for all other SPS whitepaper distribution sources. It is in the best interest of the community for the DAO to find ways to allocate capital that drives value into the SPS token. It is not in the best interest of the community for the DAO to suck SPS tokens from the whitepapers 5 year distributions into itself.
The SPS that is designated in the whitepaper for Staking/LP/Oracle rewards is to incentivize investors to provide liquidity and invest in this ecosystem. The DAO does not need incentives to provide services to the community like providing liquidity.
If the DAO is providing some of the liquidity for pools that are allocated rewards the community would be better off re-allocating the rewards to other places. It is not in the best interest of the community to inflate SPS into the DAO.
The DAO has its free allocation per the whitepaper.
i always find it very interesting that the argument precedent comes up when there are actually no other arguments.
the dao is the community account of the community, and not a foreign entity that acts against us.
the lp distribution is different from the other distributions. because you only get them in return. whoever provides the service gets paid for it. the community account provides this service.
it is very much in the interest of the community that the dao sps earns, because this way the dao sps can distribute sps beyond the distribution plan and we need this to be able to survive even after the distribution plan.
it is bad for the community. if the sps power is more and more concentrated in only a few hands. the majority gets nothing from the lp rewards, because the majority doesn't participate there, so the current state reinforces the problem of power concentration......
and in addition, sps is pulled out of circulation until we need it!
This is a no-brainer, DAO should earn without a doubt.
Do you know the reasoning behind the DAO being excluded from earning? If that reason no longer stands then the DAO should absolutely be profiting from its contribution. Great proposal.
I will not be supporting this proposal.
If the DAO starts funneling SPS from the whitepaper to itself it will set a bad precedent. I would support the DAO providing all the liquidity as a service to the community and cutting off the SPS rewards to LPs completely. The DAO is to be of service to the community not the other way around.
I will vote no because it is not in the best interest of the community.
But in effect, this accomplishes essentially the same goal, except on a proportionate basis. If the DAO is 100% of liquidity, it has all the rewards (which essentially just means they are not paid, and thus reserved for the era after sps-whitepaper-distribution). If some Liquidity Providers want to participate still, they will still earn SPS, in proportion to their relative participation. That doesn't really seem like a bad precedent to set?
I would also add, that this proposal aligns well with traditional economic theory, in that it should encourage capital to gravitate away from the pools where it is least needed, where if the DAO's liquidity is already sufficient then any extra liquidity is inefficient and could be better deployed elsewhere.
However, I'll agree that we shouldn't just assume that no private Liquidity Providers are needed. I don't think this should be a one-stop solution - this is only "Part 1".
After all, we are still allocating proportionately based on pools that were set years ago, and I think it's worth re-examining the ratios.
I think that once we reduce the reliance on "LP social security", we will see a new equilibrium, and at that point, perhaps we use the resulting new equilibrium point to determine whether the SPS allocated to each LP pool should change. We can re-calibrate the LP pool allocations to direct private capital into those pools that are seeing higher volume and/or higher slippage, where they may need more liquidity. [Perhaps algorithmically based on slippage/trading volume, etc]. I don't know the right answer, but it seems like that type of recalibration is overdue, and it would need a think tank and a "Part 2" proposal.
Why are you so against the DAO being rewarded for its liquidity services? It takes the risk so it should be rewarded. Your example of distribution also counters your point. The distribution for the LP rewards does not have restrictions on who earns it. Yes the Dao got its initial funding of sps but if it's also the main source of LP then it should get its fair share of the rewards. The only reason to be against this proposal is because you have personal financial incentive to not want the DAO to recieve its share of rewards. If that is the case then you aren't really looking towards the future health of the DAO or really the game since the DAO is going to be who will be rewarding players after SPS distribution ends. I keep seeing players voting against proposals that are aimed towards increasing the health of the funding for the DAO and it almost always revolves around said players mainly looking at personal benefit for their reasoning. At some point people need to take a hard look at the future and ask themselves if they really want our ecosystem and game to last.
I would love to hear some arguments against this proposal, as I can't think of any...
I'll support!
Is that the best for the community and the game it self
Sounds like a politician.
I'll do this I'll do that for the future of the game..
It is in the best intrest of the community and the game though. Once sps distribution ends, the DAO is responsible for funding rewards in regards to the game itself. So the bigger the DAO coffers become, the longer the rewards last and the more players the game can have without diluting the reward pools. You have to look LONG term in regards to any proposals that intend to beef up the DAO funding.
Como não é para queimar, vou votar positivo 👍
Propostas de queima de tokens não tem meu apoio.
So . . . I have a pretty major stake in the liquidity pools (at least, as far as my finances are concerned). Unfortunately, due to the tremendous loss in SPS's value over the lifetime of the pool, I'm not going to recover what I put into the pool -- particularly if the rewards that I've expected/invested in are suddenly dramatically reduced.
And this really isn't a matter of "the rich" stealing from everyone else. Most of "the rich" are disproportionately staked in the DAO and haven't been shouldering the risk/burden of providing liquidity -- and now they want all the profits from the liquidity pools with no personal risk.
What this is is a matter of Splinterlands having requested that community members take on a risk that has not paid off for them -- and is now cutting off rewards (that have drastically reduced in value) to divert them to the whales that make up the majority of the DAO.
This is also a MASSIVE deviation from the distribution proposed in the white paper. There have been other projects that have altered their distributions to benefit some parties and to cut other parties out of expected benefits. And such shenanigans never bode well for the long-term prospects of projects.
Hi all, as a large liquidity provider and overall stakeholder in this game I am quite divided on this proposal. I agree with all the pros listed above but I would also consider some of the potential cons:
Due to the above, I will currently abstain from voting, but I will continue to contemplate my decision over the next few days
yah but the goal is for sps to be staked so cons number 1 is not really a cons
From where did you get this amazing looking graph?
https://support.splinterlands.com/hc/en-us/articles/8294640892692-List-of-Liquidity-Pools-which-are-eligible-for-Splinterlands-Rewards
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I support this proposal.
However, I would love to hear from DAO about how to use these earnings to have a positive impact on Splinterverse instead of just increasing the stake portion in DEC:SPS and DEC:HIVE
makes no sense to me - i would have preferred the HBD proposal going through
How so? The DAO isn't spending any money here like the HBD proposal wanted to generatean income. It's doing nothing and earning way more money than thr HBD proposal would have generated.
I am in support of this but I am interested to know where the rewards are going currently?
PROPOSTA COMUNISTA, SE NO FUTURO NÃO HAVER INTERESSE EM PROVER LIQUIDEZ QUER DIZER QUE O JOGO FRACASSOU, O PAPEL DO DAO NAO É ESSE, SUSTENTAR A LIQUIDEZ PRA SEMPRE, O INCENTIVO DEVE SERVIR ATE O AMADURECIMENTO. NÃO CONCORDO. ESSA PROPOSTA FARA COM QUE REDUZA OINTERESSE DOS INVESTIDORESD AGORA.
I ideally am totally FOR this proposal. But I need an answer to this dumb question: are APR of pool influenced by this? I mean, at the moment mentioned pools have a reasonable APR of about 45%. Does this mean that DAO will start earning 45% like everyone else, or will the APR fall?
vai cair
DAO already have sources of income like RW, NODES, market fees, and other possible like PROMO sales or other... It also has SPS amount specifically allocated to DAO.
DAO doesnlt need to farm it's own rewards. DAO controls the SPS supply in the first place. DAO farming it's own token doesn't do anything except reducing the emissions to players. DAO farming it's own token, or saying reduce emissions by 80% and route back funds to DAO is the same thing.
It will be better if DAO lock that Liquidity in panckeswap and susi farms to earn cake and sushi. That way DAO will not only have liquidity provided but earn external tokens which can be later used to do anything (like buying SPS, or buying DEC or holding these tokens or selling for stables etc.)