xXTKa Rewards Extension

Tokenomics
#1

It’s just about that time to discuss rewards to XTK stakers. The previous rewards period is ending next week and we as a community need to decide how much in incentives we want to pay out to xXTKa holders to complement fee revenue from xToken Terminal and legacy products.

As a reminder, we voted in October to pay out 3% of XTK supply over 6 months. Taking into account the amount of XTK staked over this period, rewards from incentives have hovered around 40% for most of the period.

As the protocol matures and as new revenue comes in from Terminal, we believe the sentiment in the community is that we should steadily decrease emissions paid out to stakers, while still maintaining a healthy incentive to stake. We propose the following options for the upcoming 6 month period:

  • 1.75% of supply
  • 1.25% of supply
  • 0.75% of supply
  • 0.25% of supply

We open this discussion up to the community for comment and will post the vote to Snapshot later in the week, pending feedback.

Once the vote has concluded, we intend to incentivize a XTK/xXTKa concentrated liquidity Terminal pool on Arbitrum to allow L2 XTK holders to easily swap into the yield-generating version of the token.

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#2

I’m glad these incentives are not set in stone and that we have the opportunity to vote every six months.

As emissions have slowed in other XTK reward programs, I’d personally like to see staking incentives reduced as well. Fingers crossed for one of the lower emission points.

#3

Are there different exit fees or is that a different vote?

#4

We can have another conversation on the unstake penalty if there’s community interest. It’s currently 2.75% and this proposal would not impact that

#5

Should be doing 1.75% of the supply, I have been staking since August 2021 and I believe reducing the incentive to stake is great and all but anything more than a -1.25% jump is a lot from the 3% we have been receiving for the past 6 months. In the following 6 months, we can of course lower it even further but let us not completely deter stakers now.

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