SPS Governance Proposal - Reduce SPS:Swap.HIVE LP incentives
DAO Sponsored Proposal
The purpose of this proposal is to reduce the inflation being paid to the SPS:Swap.HIVE pool in line with the recently passed proposals to reduce inflation being paid to our LPs on both BSC and ETH. Hive and Splinterlands, while closely connected, are more isolated to outside capital than BSC and ETH. The trading volume is also quite high in the SPS:Swap.HIVE pool, which means it needs less additional incentives because it is generating organic trading fees to compensate the liquidity providers. This is how a healthy pool should operate.
If this proposal passes, the SPS DAO will reduce the inflation being paid to the SPS:Swap.HIVE liquidity pool on Hive Engine to 900,000 SPS per month from the current 1,095,826 SPS per month. This will free up additional inflation that the DAO would then be able to vote to utilize when opening new pools in the future.
Thank you for participating in SPS DAO Governance @clayboyn!
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: 2024-04-30 20:43 UTC
You can’t touch this pool, that’s all that’s left!!!
The pool isn't going away. All the other pools still exist too.
This pool provides essential liquidity between the only 2 externally listed Hive tokens. It is not worth the risk of reducing the health of this pool to save 195,826 SPS inflation per month.
As clay wrote
"The trading volume is also quite high in the SPS:Swap.HIVE pool, which means it needs less additional incentives because it is generating organic trading fees to compensate the liquidity providers.
This is how a healthy pool should operate."
Death by a thousand cuts...
These changes won't help the token value but they will help to drive even more people away...
Seems prudent, arguably even cautious, so let's do it!
Last Pool Standing :D I dont think it is worth it to reduce the amount for this Pool atm. Why dont give People who add liquidity to the pools the opportunity to vote on the Proposals with the amount of SPS which are in the pool ? i think more pple will add liquidity anyways and then the APR isn´t so important then now.
People in LPs have no 4 week lockup and get higher APR than people staking SPS. Allowing people to vote without staking while also giving 2-3x APR for not staking would be problematic I'd think and would certainly open up voting attack vectors. The good news is, there's no lockup on the pools so if people want to use that SPS to vote, they can stake it and do so.
true
Since this is a small reduction, I am okay with it. If SPS price reach previous ATH, the small amounts saved today could lead to a great deal of value that can be used for more development or user onboarding.
I consider this a crucial trading pair within our ecosystem. Dislike. Last sentence also makes me we wonder. Why cut inflation to raise it at another point?
Seems like a good idea in principle.
The only question I have at the moment is why a reduction of 195,826, as opposed to any other amount?
Probably something to do with OCD and round numbers.
😁
Regarding the economic aspect, please don’t pretend to understand. The several plans you proposed in the past have all lowered the price of SPS, and the price has been lost by at least 50%. Many players do not understand the principle of supply and demand. You are just manipulating the price of SPS. This game is going to get messed up by you, and in the end you just put the blame on the people who voted, and you think you're totally in the right. You are really bad.
Sounds good, hope it recover soon
The content of the text is the opposite of what the title claims, so don’t be fooled. If this proposal is passed, SPS prices will become lower and lower.