Ok peeps its time to get down to the nitty gritty on this hot topic; Unclaimed rewards and how, we as a community, can best utilise them to solve a plethora of issues linked to the linear protocol.
On discussion with key community members and via the DAO council we propose the following with the view to putting to snapshot within the coming days.
Unclaimed rewards vary, quite understandably, based on fluctuations in the price of the LINA token. Clearly when the price is up, stakers are able to achieve a good p-ratio, build, claim, trade etc. When the price is down we all know the pain of trying to keep our heads above water, it becomes a challenge just to ensure we keep above 200 and avoid liquidation, let alone 500 to claim.
Note, so far this year the average weekly amount of unclaimed rewards has been around 8 million per week, compare this to a period of October to November last year, 2021, around 3 million per week.
A mean average of unclaimed rewards to date is duly 6 million per week, unclaimed Lina tokens.
We propose to use these tokens as follows:
30% DAO fund (see below)
50% Back to stakers in Buildr
What does this mean in reality?
The 20% burn and 50% return to stakers are self explanatory. Whilst the burn will probably not have a huge effect on token price, it will as mentioned in the forum, at least allow us the popular label of a deflationary token. Regarding the 50% back to stakers, I guess what we need to consider is this - We’ve all enjoyed a nice ride of extra rewards recently, this wont last forever, can we cope with 50% less in EXTRA rewards?
30% to the DAO
So here’s the interesting component and our initial suggestion.
This will be used to help achieve peg. Currently, quick maths suggest that we need circa 35k-50k usd value of LUSD vs BUSD to achieve peg, currently we are .88c lUSD on Pancake Swap. 30% of 6 million Lina in monetary value, at todays price is about 33k so we suggest that peg can be achieved within 2 to 3 weeks of this proposal being voted in.
Following this, if no funds are required to achieve peg, then the funds will go in to the DAO treasury to be used for other incentives, or, then re deployed for peg management as and when needed.
Other use cases for DAO treasury fund:
- Linear exchange development, we see this as a major area of concern, to increase the user base of the exchange and develop its usability and unique offering.
- LINA token use case and marketing, increase buy pressure and price action of the token.
- Explore DEFI partnerships to help spread the word of our ecosystem but also enhance our DAO funds through shrewd investments.
To help achieve peg, we will need to sell LINA on the open market for lUSD and/or BUSD, thus creating a negative effect on the LINA token price. Whilst this is a concern, it is deemed a necessary measure and certainly a temporary one in order to achieve peg. For sure the long term benefit should outweigh the short term negative effect.
Pancake Swap liquidity, LUSD/BUSD info: