If a portion of the NFT Protocol governance pool were to be allocated towards a “liquidity mining” initiative, should the size of this allocation be pre-determined/announced or unannounced? If it is pre-determined, what size should it be?
There are currently 30m $NFT tokens in the NFT Protocol DAO governance pool:
This governance pool is to be leveraged in order to serve the long term interests of NFT Protocol and $NFT token holders. As such it is important that $NFT token holders discuss and consider the options contained in this proposal carefully.
NOTES
An unannounced allocation would imply that the NFT Protocol core team would ultimately be responsible for determining the size of the allocation because any attempt to involve NFT Protocol governance in this decision would reveal to the public the size of the allocation.
Voting “No” means you don’t support allocating governance tokens towards such an initiative.
Last week a ‘temperature check’ was put forth proposing that a portion of the NFT Protocol DAO governance pool be allocated towards a “liquidity mining” initiative to coincide with the DEX launch.
This initiative would entail a specified portion of the governance pool becoming claimable by those who provide liquidity to the NFT.org DEX within a specified timeframe after the official DEX launch in July.
The ‘temperature check’ received sufficient support to move on to this ‘consensus check’ stage.
The uncertainty at play if the size of the allocation is unannounced could inspire more use of the DEX by speculators. This option also creates flexibility for the NFT Protocol core team to select an appropriate size for the allocation according to the actual number of unique addresses which used the DEX during the period of eligibility.
The uncertainly may, on the other hand, deter a certain demographic of people who are more comfortable knowing ahead of time what they can expect.
500k, 1m, 1.5m $NFT
These three options seemed to the NFT Protocol core team like reasonable projections of allocation sizes that would make the program viable, lucrative and appealing without having any DEX use data available to us pre-launch.
$NFT token holders may feel more comfortable knowing exactly what portion of the governance pool would be allocated to this program. A certain demographic of users may also feel more comfortable knowing what they can expect out of the program.
A different demographic of people, however, may find themselves deterred by the pre-determined size of the allocation, perhaps feeling it’s not big enough after assessing the on-chain swap data which will be publicly available through the block explorers.
NO
Perhaps you feel that this is not an appropriate use of governance pool funds. This allocation would, after all, increase the circulating supply. It is up to $NFT holders to discuss and consider whether or not this program benefits NFT Protocol and the $NFT token in light of the associated increase to the circulating supply.