Our current liquidity mining schedule is unsustainable (following community discussion in the discord and discourse). As it stands, a large share of our audience is likely unaware of the current rewards program. This means a disproportionately large amount of TCR is being accumulated by a few accounts. We need to adjust the schedule to bring down APY and prepare for update rollouts, where we anticipate that the TCR we save now can be used to capture more market share. We are talking about a “V2” launch or, really, a relaunch with optimised contracts and marketing.
It follows that the release schedule should be augmented such that it does two things:
i) distributes TCR slower and more evenly; and
ii) maintains a certain amount of TCR reserves so that we can have flexibility for a V2 push.
In the Liquidity Mining Proposal, we gave an example liquidity mining schedule that has so far been followed. Here we provide a more concrete, contemplated schedule we will implement moving forward. The same amount of TCR will continue to be allocated to the Liquidity Mining Proposal requirement specified here. All we are changing is the rate at which it is distributed.
The current liquidity mining schedule is very front-heavy, which assumed a lot of things. It assumed that 1) the Perpetual Pool release would be optimal (including UX and marketing) and, 2) that natural market liquidity would exist for TCR. On the first point, we have seen the product behave more like a ‘beta’ release than anything. While successful, we believe that shortly the team can deliver a superior protocol experience (work has started). This follows from user/community feedback. On the second point, Visor finance has been engaged to manage a Uniswap LP position for the TCR-ETH trading pair. There is also an active campaign to see a Tokemak.xyz reactor created to boost TCR market liquidity.
This is the liquidity mining schedule that’s been used to date:
Below is the new liquidity mining schedule. The new Liquidity Mining Schedule covers the same period of the previous schedule, but has a much more even, and equal release of TCR. In the new schedule, we will deploy an average of 1.5M TCR for each week between now and 10 March.
This new schedule aims to address the two pain points mentioned above. The TCR rewards offered here are still enough to incentivise TVL and combat any volatility decay that traders may experience. It also avoids the risk that once markets become liquid the few whales holding tokens can dump and drive APR down and liquidity away from the Pool tokens. Users will note that 8M TCR has not been allocated to a specific time. This 8M TCR will be released at (and around) the time of a V2 launch.
As was the same for the current liquidity mining schedule, this new schedule is subject to change based on market conditions. A further update will be given if the schedule is to change again.