Well here I thought VOLT was going to be the end of FUSE denominated rewards for good. The Launch of the VOLT token would remove the constant downward price pressure created by farmers/autocompounders and replace it with constant buys. Unfortunately this lasted only 2 days until the disastrous VIP-2 vote. Now there is 6,664 FUSE distributed daily as incentives for LPS.
A couple of notes about VIP-2
-LPs couldn’t vote, this means that 3mln FUSE could not take part in this decision
-Based on voting weights, 4 people decided the outcome.
-There was no revision of the original strategies after being posted on this forum.
-The strategy changes were discussed for 48 hours and then voted upon. This is too short of a time to implement feedback
Now we have the resumption of FUSE rewards again and its a terrible outcome.
My proposal is as follows.
- End the FUSE incentivizes immediately
- Do not burn the FUSE collected during the sale.
- Switch to a constant bid for VOLT
1 and 2 are self explanatory. I’ll cover 3 a bit more indepth.
Instead of distributing the FUSE directly to stakers, instead create a bot that buys a specific amount of VOLT every block. Based on the rewards given right now, plus the extra FUSE that’s marked to be burned, this is around 10k FUSE per day or .7ish FUSE per block.
Use the FUSE to buy back a small amount of VOLT every block. Add the VOLT to the treasury for later usage as decided by the DAO.
The benefit of all of this is that VOLT price will have a constant upward bid and APRS will match for VOLT! Everyone wins.
Proposal
- Yes, Stop FUSE incentives/burn and buy back VOLT instead
- Do nothing
2 Likes
i like this idea.
- fuse is not wasted in a burn… (burn creates short term hype, and does little for price action)
- the constant buy pressure on volt, will add to volume and total liquidity.
- the voltage bought with this could be used to constantly supply the reward on the voltage farms. (this would essentially be distributing the swapped fuse/for volt to the community members that are using voltage/fuse to the fullest)
"Strategy 2:
10% of the $FUSE tokens collected will go to an incentivized single-staking pool (stake xVolt for Fuse rewards)
40% of the $FUSE tokens collected will be burned
50% of the $FUSE tokens collected will be added to liquidity pools selected by the team"
this says nothing about adding fuse incentives to the voltage farms.
why and when was this decided?
one of the main features of Volt was to stop the constant sell pressure of fuse from reward systems on fuse network.
https://snapshot.org/#/voltagefinance.eth/proposal/0x63207aaedd20eef47a600a4a9bc474d5d1f5b5268a5fae6dc54e4ccfc6eac55a
also says nothing about adding fuse as an incentive to the current farms,
to me this action seems to be going against the idea of the DAO.
unless i am not understanding what “50% of the $FUSE tokens collected will be added to liquidity pools selected by the team” means.
1 Like
Agree the burn wont have a substantial effect as it’s such a small amount.
However, the burn does represent some of the value of Fuse that was moved to Voltage as voltage spun out to be it’s own company. These burn tokens should be used compensate for that value loss.
One way is Voltage keep the Fuse tokens, and then distribute the equivalent amount of Volt tokens back to public sale investors at the Fuse/Volt sale price (0.448 / 0.004) - so all public sale participants get more volt tokens.
1 Like