KAP Games (fka “Kapital DAO”) has operated a successful liquidity staking program since Q3 2022. The staking program rewards were adjusted once before in KIP-4, and, in the interest of maintaining the staking program for a longer duration, this proposal recommends adjusting the staking rewards again by reducing emissions by a further 75%.
Importantly, this would have no impact on existing staking rewards. Any rewards already earned by stakers remain earned.
The net impact of this adjustment would result in:
- No change to current stakers’ rewards (i.e. any rewards earned by users with staked KAP will not be reduced)
- Adjusting the rewards emitted after December 1, 2023 to be in-line with a rate of 2,500,000 each year for twenty years following that date
The DAO proposes the following three options, as well as the customary null option.
A. Approve KIP-7, reducing the liquidity staking rewards emission rate to 2,500,000 KAP per year and extending the lifetime of the staking rewards over a ten year period following December 1, 2023
B. Reject KIP-7, and maintain the current liquidity staking rewards emission rate of 10,000,000 KAP per year for a total of five years
C. Create a new proposal to terminate the liquidity staking rewards program entirely
D. None of the above
This proposal entails the adjustment of incentive rewards related to the liquidity staking pools operated by KAP Games. The proposal suggests extending the lifetime of staking rewards by reducing the emissions rate of future emissions by 75%.
In an effort to create a long-run sustainable ecosystem, the DAO sees more conservative incentive emissions as supportive of a case for gradual decentralization and robust product development. Extending the staking incentive program by reducing the emission rate will allow a larger amount of DAO participants to enter the pool over a longer period of time, and drive more sustainable interest in the DAO’s activities.
Voting Option A on this proposal implies:
- You wish for KAP Games to reduce the liquidity staking rewards rate to 2,500,000 KAP per year after the date of December 1, 2023.
Voting Option B on this proposal implies:
- You do not wish for any adjustments to KAP Games’ liquidity staking rewards.
Voting Option C on this proposal implies:
- You wish for the creation of a new proposal and a new vote exploring the dissolution of KAP Games’ staking programs.
Voting Option D on this proposal implies:
- You wish to abstain from voting.
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