Please read the below proposal text regarding the topping-up of reward NDX for the dynamic rewards program for liquidity provision.
Prior to this vote going on-chain, it is worth first determining whether or not the DAO wishes to continue with the program as is, or simply route enough NDX to meet current obligations and then terminate the program prematurely (with mind to producing an alternative scheme for liquidity incentivisation in the future).
I’ve set up a one-week Snapshot vote to this end, which should be long enough for folk to ask questions if they’re not clear on anything and cast their votes.
Link to the Snapshot is here, and contains a little bit more detail: Snapshot
tl;dr read the Snapshot text and the below!
Transfer Additional Staking Rewards To Masterchef Liquidity Mining Contract
Back in May 2021, the Indexed Finance DAO launched its dynamic liquidity mining program, handing out NDX governance tokens as a reward for parties that provide liquidity for indices maintained by the DAO.
This program is set to run for approximately two years and is set to emit 1,500,000 NDX over the course of its lifetime, with emissions decreasing on a linear curve as time goes on.
When the program was started, the Sigma Committee transferred 527,500 NDX tokens to the Masterchef contract, per the result of this Snapshot vote. This initial deposit represented emissions for the first million blocks (approximately 5.5 months), with the intent being that this served as a ‘checkpoint’ for the DAO to reflect on the program and determine whether it should continue.
That checkpoint has arrived: while the tokens within the Masterchef were all allocated at some point in November 2021, and all subsequent emissions have been a form of ‘debt’. LPs have now claimed sufficient NDX from the Masterchef as to require more tokens to be moved from the Treasury in order to honour existing and future claims.
This proposal - if executed - moves 600,000 NDX from the DAO Treasury to the Masterchef contract, in order to meet current obligations and extend the emissions runway until early July (calculations determined from this spreadsheet).
Thereafter, a second checkpoint vote will have to take place to determine whether the DAO should transfer the remaining 350,000 NDX (approximately) to cover the remainder of the program’s lifetime.