ABCDEFGHIJKLMNOPQRSTUVWXYZ
1
2
3
Proposer:
WhiteMarlin & Seppmos
4
5
Purpose:Overhaul of the STARS Tokenomics
6
7
TLDR Proposal:This proposal intents to cut daily emissions by June 1st 2023 by 60%, to significantly lower inflation. The staking APRs will now outpace inflation and stakers will no longer get diluted .The thirdening will still occur on a yearly basis, the next one happening on January 1st 2024. This will cause the max supply of STARS to drop from 4B to 3B. Community Pool funds will be utilized to supplement stakers once inflation cools down.
8
9
10
Problem:Stargaze launched January 2022 with 50% of the inflation going towards the Community Pool (CP) for future spend on usage such as NFT Staking, Infinity Swap, etc. This bloated the CP up to an unhealthy level. Now that NFT Staking and Infnity Swap are set to go live on Stargaze, it will require an adjustment to the allocation of emissions.
11
12
13
The changes to the protocol can be summarized as follows
14
15
Daily Emissions by Bucket
16
17
BucketCurrent StateFuture State
18
Staking35%60%
19
NFT Staking0%10%
20
Infinity Swap0%10%
21
Commmunity Pool50%5%
22
Devs15%15%
23
24
These changes introduce an increase of emissions going towards users which we will call "Real Daily Emissions". You can think of Real Daily Emissions as everything that isn't going towards being locked in the Community Pool. In the sheet "Status Quo", you can see that the real daily emissions increase as follows:
25
26
27
YearDaily EmissionsReal Daily Emissions
Real Daily Emissions = Total emissions - Community pool emissions
28
20222,739,7261,369,863
in 2022, 50% of the emessions went to the community pool, thus RDE are only 50% of DE
29
Jan - June 2023
1,831,502915,751same here
30
July - Dec 2023
1,831,5021,739,927
with the implementation of prop 1, only 5% of daily emissions will flow into the community pool
31
20241,217,6561,156,773
32
2025811,771771,182
33
2026541,181514,122
34
2027360,787342,748
35
2028240,525228,498
36
2029160,350152,332
37
2030106,900101,555
38
39
40
This high influx of daily emissions into the Stargaze Community Pool bloated it up massively. To date 860M STARS of the 2.2B STARS Current Supply are sitting in the community pool and it is projected to be roughly 900M STARS by July 1. This creates a large liability for the platform as it cannot reasonable spend most of these coins on Public Goods without crashing the market. As a result, most of the coins sitting in this pool would remain and not be working for the benefit of Stargaze Platform.
41
42
43
44
Stargaze Community PoolTotal Supply% of Total SupplyDate: 5/10/23
45
861,348,3762,222,923,02238.75%
46
47
48
The proposed solution to this problem is to introduce a bonus emissions cut for July 1, 2023 to coincide with the release of Infinity Pools and NFT Staking later this year (Q3-Q4). In order to shrink the Community Pool, CP funds will be utilized to supplemt stakers as infltion comes down. Please note that the rate at which Emissions are cut is dependent on the date to help achieve a new Max Supply of STARS. If emissions were to be cut by 60% on July 1st 2023, the Max Supply would decrease from 4B to 3B.
49
50
Solution:
51
52
Summary of Change:
53
1)
Bonus Emissions reduction on July 1.
54
2)
Use the bloated Community Pool to supplement the emissions cut.
55
3)
Max supply will decrease from 4B to 3B.
56
4)
Next Thirdening has to occur on January 1st 2014, to not deviate from the new max supply.
57
58
The Daily Emissions and Infaltion are impacted as follows:
59
60
Thirdening: 1yearONE OFF Cut60%
61
Thirdening:0.666666667new max supply3,000,000,000Total Community Pool Spend:662,475,005
62
YearTotal Supply at Beg of year% of total supply issuedBonus Cut EmissionsEmissions After Normal ThirdeningEstimated Stake 52%Inflation as % of Total SupplyDaily EmissionsInflation including community pool spendingEmit Additional Stars from the Community Pool to augment emissions and shrink CPCommunity Pool Spend in yearly emissionsTotal Daily Emissions
63
20221,000,000,00033.33%1,000,000,000420,000,000100.00%2,739,726100.00%2,739,726
64
 Jan - June 20232,000,000,00066.67%333,333,334840,000,00033.33%1,826,48433.33%1,826,484
65
July - Dec 20232,333,333,33477.78%133,333,3331,096,666,66711.43%730,59412.99%100,00036,500,000830,594
66
20242,466,666,66782.22%177,777,7781,159,333,3337.21%487,0628.83%110,00040,150,000597,062
67
20252,644,444,44588.15%118,518,5191,375,111,1114.48%324,7086.21%125,00045,625,000449,708
68
20262,762,962,96492.10%79,012,3461,436,740,7412.86%216,4724.51%125,00045,625,000341,472
69
20272,841,975,30994.73%52,674,8971,477,827,1611.85%144,3153.46%125,00045,625,000269,315
70
20282,894,650,20796.49%35,116,5981,505,218,1071.21%96,2103.10%150,00054,750,000246,210
71
20292,929,766,80597.66%23,411,0651,523,478,7390.80%64,1402.92%170,00062,050,000234,140
72
20302,953,177,87098.44%15,607,3771,535,652,4930.53%42,7602.69%175,00063,875,000217,760
73
20312,968,785,24798.96%10,404,9181,543,768,3290.35%28,5072.44%170,00062,050,000198,507
74
20322,979,190,16599.31%6,936,6121,549,178,8860.23%19,0042.07%150,00054,750,000169,004
75
20332,986,126,77799.54%4,624,4081,552,785,9240.15%12,6701.68%125,00045,625,000137,670
76
20342,990,751,18599.69%3,082,9391,555,190,6160.10%8,4461.32%100,00036,500,000108,446
77
20352,993,834,12499.79%2,055,2921,556,793,7440.07%5,6310.98%75,00027,375,00080,631
78
20362,995,889,41699.86%1,370,1951,557,862,4970.05%3,7540.65%50,00018,250,00053,754
79
20372,997,259,61199.91%913,4631,558,574,9980.03%2,5030.40%30,00010,950,00032,503
80
20382,998,173,07599.94%608,9761,559,049,9990.02%1,6680.26%20,0007,300,00021,668
81
20392,998,782,05099.96%405,9841,559,366,6660.01%1,1120.14%10,0003,650,00011,112
82
20402,999,188,03499.97%270,6561,559,577,7780.01%7420.07%5,0001,825,0005,742
83
20412,999,458,69099.98%180,4371,559,718,5190.01%4940.01%0494
84
85
86
87
Furthermore, it would also make good use of the bloated Community Pool funds while still leaving the CP well funded for realistic spend based on the amount of liqudity. The change in the Community Pool can be summarized as follows:
88
89
90
YearCommunity Pool Daily EmissionsCommunity Pool Spend in yearly emissionsTotal Community Pool as of 5/10/2023Projected Community Pool 7/1/2023Community Pool inflow after 7/1/23 until inflation stopsCommunity Pool SpendRemaining Community PoolCommunity Pool as % of Max Supply (3B); assuming no other spends Community Pool as % of Liquidity on Osmosis (62M stars)
91
2022861,348,376907,248,37673,123,750662,475,000317,897,12610.60%512.74%
92
 Jan - June 2023
93
July - Dec 2023100,00036,500,000
94
2024110,00040,150,000
*The exact budget of the yearly community pool spends has to be approved by Governance
95
2025125,00045,625,000
-We propose to form a Sub-DAO that does the math on it, adjusts yearly spending according to on chain activity and external macroeconomic events
96
2026125,00045,625,000
-Such a Sub-DAO may also be in charge for adjsuting FAIR BURN mechanism as SG matures, marketplace activity takes off and inflation comes down.
97
2027125,00045,625,000
-Furthermore, the Sub-DAO may be tasked to cordinate together with the SG team the launch of new NFT-DeFI primitives like Infinity Pools and NFT staking.
98
2028150,00054,750,000
-The Sub_DAO is also tasked to elaborate incentive models for these NFT-DeFI features and adjust them accordingly over time.
99
2029170,00062,050,000
100
2030175,00063,875,000
The Sub-DAO reports to the main DAO