Since the beginning of the USF rewards program, there was little to no change both for Capital Mining and Uniswap LP mining. Early on a Long-Term Thinkers vault was introduced for Capital Suppliers, the objective was to separate the distribution in two: a first distribution that is based on pure capital supply and a second one based on what the token holder does with their USF tokens. The rules and conditions were to be defined later but the spirit was to reward holders who act while having the interests of the protocol in mind.
Several community members discussed the rewards and USF distribution schedule as well as the tokenomics/utility. The two main points regarding the rewards were related to the APY given to Uniswap LPs that is between 150% and 200% and the Long Term Thinkers Vault. This proposal is meant to address the first point, the second is being discussed on Discord (you can check the discussions here) and has already started being structured.
The Rewards are currently as follows:
- Capital Miners 150k USF (epoch rewards+ bonus) + 100k USF going to LT thinkers vault
- Uniswap LPs 300k USF (epoch rewards + bonus)
This proposal aims to:
- Reduce the Uni LPs rewards by 1/3 from 300k USF to 200k USF
- Have 80k USF out of the 200k USF go to a Long Term Thinkers Vault for Uniswap LPs
If approved, this proposal will be starting from epoch 15 (tokens vesting during epoch 16).
The discussions led to a first vote on whether we want to change the rewards or not: Rethinking USF Rewards (Part I) - #10 by Marh