TLDR
We propose to reactivate treasury rewards to ensure available funds for strategic ecosystem projects:
treasuryRewardCutRate: 10%
Motivation
The treasury is key to supporting strategic investments to improve UX for stakeholders, effectively manage protocol security, and fund other capital and resource needs for this exciting phase of the project. As of now, the onchain treasury is currently not accumulating LPT due to hitting the “treasury ceiling” and resetting the treasury reward cut to 0%.
We have a number of strategic proposals around managing capital, supporting network security, and funding continued development and optimisation of the network either live or in backlog ready to be proposed. We need certainty that the treasury will be repopulating before making important decisions around these proposals.
Rationale
The treasury is key to supporting strategic ecosystem investments and public goods. As such, the desired treasuryRewardCutRate should reflect the value that best supports us in achieving those ecosystem goals.
Through open discussion in the forum and the most recent Watercooler, focus was on rapid action to restart the treasury cut. In the interests of moving rapidly, and given there was little to no discussion about changing the parameter, we propose to restart round-based treasury rewards at 10%. This is the same rate as during the life of the onchain treasury.
Technical Specification
Implementation of this LIP will update the target parameter with the new value:
| Parameter | Value |
|---|---|
treasuryRewardCutRate |
10% |
For a more detailed technical review of the parameter you can review its instantiation in the original LIP here
Implementation
The security committee, as owners of the protocol, invoke the function and set the value as per the results of the vote.
Testing
Testing is not required. The Security Committee ensure to set the value of this parameter to 1e26 (1 with 26 zeroes after).