VIP-88 is now live for voting. Active until: 04. 2023 16:33 UTC. Proposal type: Normal. VIP-88 XVS emissions reduction.

03 Feb 2023, 16:36

VIP-88 is now live for voting Active until: 04.02.2023 16:33 UTC Proposal type: Normal VIP-88 XVS emissions reduction ### Summary DeFi lending protocols often use rewards in the form of token emissions to boost supply and borrow APYs, in hopes of attracting new users. Nonetheless, high emissions rates increase the protocol’s token circulating supply, affecting the price negatively, especially in a bear market. When market conditions are not favorable cutting emissions may have a positive effect on the protocol token price and could also create an opportunity for growth if used as an investment. Lastly, the previously proposed and ratified prime token program is intended to serve as the strategic solution for boosted supply APY and borrow rate subsidies, ensuring that any valued integrators and protocol participants will continue to reap competitive rates. ### Description As suggested from the collected data from a 30 day span since the emission cut, there is no sign of effect over the protocol's total TVL after the XVS emission cut. The results are the following: * At the end of the 30 days, supply TVL increased by 0.6%. * At the end of the 30 days, loan amounts were reduced by 3.2%. This behavior suggests no considerable effects on the TVL by the emission cut. With this, the recommendation is to proceed with reducing emission by an additional 50% to reduce circulating supply and selling pressure on XVS. We are proposing the following: - Reduce XVS emissions on supply and borrow markets by 50% of their current rate. - Reduce XVS emissions to the VAI vault by 50% to help recover the PEG to $1.00. Vote 👉🏻https://app.venus.io/governance/proposal/88