Proposal: Reduce MYIELD emissions

Proposals
1

Hi

I would suggest to reduce the MYIELD emissions at least by 50%. With the MILK price going parabolic in the last days/weeks we need to lower the emissions to have a longer time range for rewards to LP providers. It would be good if someone from the team could give exact numbers how many MYIELD are left to distribute (and timeline) and then we can vote for the exact % to lower the emissions or maybe we could have some sort of mechanic that is tied with actual MILK price? I then also would suggest to remove the 30days of staking MYIELD for MVOUCHER and therefore let the people directly change MYIELD to MILK (maybe after we added decimals to MILK and until then keep the MVOUCHER but also without 30days).

The emissions reduction needs to be in place soon. MIN for example also has a vote right now to reduce their emissions.

Regards

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2

I think that is a terrible idea that can only come from people not providing liquidity for MILK. During the last few month everyone providing liquidity for MILK lost more than 50 percent of the milk because of the parabolic movement. MYIELD rewards for MILK liquidity should go up, not down!

3 Likes
3

not really … i’m doing LP by myself and what you describe is impermanent loss and has nothing to do with MYIELD emissions. If you can’t take that risk it’s better you don’t provide liquidity! Also the rise of MYIELD price lately made that loss a lot less if you hold it and didn’t sell. my concern for this proposal is that MYIELD will run out in no time with current emission rate (i don’t know what other incentives could come in place after MYIELD?). regards

4

and here the link to the MIN proposal which passed → https://app.minswap.org/gov/7434204a256ef740eb928f3cd56f77302c051b977c8282d43c9e144dbd4b2fd2

5

The team always intended for all MYield to be distributed within 18 months and then have a governance vote on what to do afterwards with farming incentives. I’d be inclined to stick with that plan as I don’t think the end of the 18 months (some point April 2024) is a coincidence taking into account estimates for Bitcoin halvening date. I personally don’t think it’s useful to compare Muesliswap emissions to Minswap and copy their communities strategy when the 2 projects tokenomics are very different. I’m happy for someone to explain why they are comparable though as I admit to only having a surface level knowledge of Minswap.

3 Likes
6

I am well aware of impermanent loss and I also know there are risks involved in providing liquidity and that is not the point. The point is, that impermanent loss is a marketing gimmick of decentralized Exchanges, that assumes, that token are going up and down against each other. The loss gets permanent at some point in time as seem with the LUNA crash! Point with risk is, that there is a risk in every investment but if the rules are changed during the investment period, with the existence of the impermanent loss, it is not a fair deal. Apart from that, if you really provided MILK/ADA liquidity, you should be aware that you lost money by now, even if you held the MYIELD.

1 Like
7

But the rules are not changed without your knowledge. So you need to active manage your investment and then you minimize your risk/rewards. I pulled out my MILK/ADA LP when it was low and got a lot more MILK than ADA in that time (because i believed that MILK is way to under valuated and i will have a lot more ADA in the future when MILK is raising again → NOW). It’s just a proposal and maybe it would be good to hear from the team what happens as incentive if MYIELD runs out. Because LP provider at the end want something in return for providing liquidity on a DEX otherwise they move to another one :wink:

8

i can live with that but best would be to hear a strategy from the team about this :wink: i know we can’t compare MIN with MILK 1to1 … But we have to keep an eye on future rewards for LP providers.

1 Like
9

Yeah 100% with you on having more clarity and communication on strategy. There is an element of ‘trust me bro’ with MuesliSwap that has always made me cautious (not exclusively a MS issue by any means in web 3). So far they’ve absolutely delivered, but now Milk has taken off would love to see a more thorough plan/WhitePaper 2.0 with roadmap. Think it would reassure those of us already here, build confidence in the products and bring in a lot more users and investors imho. Plus, as you say, got to keep an eye on the future, which is hard if you don’t know which direction to look :smile:

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