full image - Repost: [Governance Poll Proposal] Align Mainnet and Arbitrum Liquidity Incentives (from Reddit.com, [Governance Poll Proposal] Align Mainnet and Arbitrum Liquidity Incentives)
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Current situationThe current liquidity incentives are;Mainnet 250k DONUT per monthArbitrum 200k DONUT per monthProblemOur priority is to grow liquidity and on-chain activity on Arbitrum, but Mainnet currently receives greater incentives and experiences greater trading volume.Because Mainnet has deeper liquidity and greater rewards this creates a reinforcing loop where traders can trade with less slippage and providers earn more rewards.Meanwhile, there is less depth on Arbitrum, higher slippage - this is less appealing for traders, and lower volume is less appealing for liquidity providers.SolutionI propose to reduce the incentives allocated to Mainnet / Uniswap by 50k per round so it is on par with that of Arbitrum / Sushi.com at 200k DONUT per round.For the time being the 50k DONUT freed up can be held onto by the treasury, until the DAO is ready to allocate it for other use.This adjustment will be applied upon the next liquidity rewards top-up for Mainnet.Adjusted Liqudity RewardsMainnet = 200k DONUT per monthArbitrum = 200k DONUT per monthAdvantagesBrings reward parity between Mainnet and ArbitrumSlightly reduces supply inflation on MainnetAllows treasury flexibility for future strategic useDisadvantagesDoes not directly improve liquidity health on ArbitrumMay devalue incentive for Mainnet providersConclusionThis would be a low risk proposal that will unlikely see any direct or immediate impact to the Arbitrum liquidity pool, however, it establishes reward equality between chains and frees up 50k DONUT per round for future strategic use. This allocation could support additional initiatives such as marketing campaigns, trading competitions, an EthTrader staking pool/validator, or other development work that may strengthen the DONUT eco-system on Arbitrum over time.The choices are:[YES][ABSTAIN][NO]This proposal will remain up for a minimum of 2 days, according to the governance rules & guidelines. This proposal requires 2 moderators to sign it off in order to proceed to a governance snapshot vote. If approved, this proposal will automatically be queued for Governance Week.
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