Summary:
This proposal contains an action to begin compensating the LQWD stake pool operator each month with funds originating exclusively from minFee parameter pool setting. The minFee parameter pool setting is currently set to the mandatory minimum of 170 ADA. This proposal action aims to increase from the 170 ADA minimum to 250 ADA per pool (500 ADA total per Epoch). LQWD SPO is responsible for maintaining LQWD pools, completing timely updates to pool infrastructure as required and monitoring block production during epochs.
LQWD’s SPO is compensated $2,000 per month for their work ensuring all blocks assigned to LQWD pools for an epoch are minted for the benefit of Liqwid ADA lenders who receive full Cardano staking rewards averaging ~120,000 ADA per month. LQWD pools since inception have distributed full staking rewards with only the mandatory minFee of 170 ADA per Epoch per pool since the initial LQWD pool 1 launch. This proposal aims to increase the minFee of 170 ADA per pool per Epoch to 250 ADA per pool per Epoch to achieve a monthly compensation of $2,000 for the LQWD SPO to cover the LQWD SPO’s infrastructure expenditures as well as their time dedicated to ensure top performance for the Liqwid protocol’s stake pools.
LQWD stake pool operator Conrad Cordeiro also manages BLADE pool and is the founder of Cardano naming service ADA handle. The pool infrastructure for BLADE is entirely independent of the LQWD pools infrastructure. Conrad has not been receiving the 170 ADA minFee as this amount (paid by the blockchain) gets included into the rewards account which are then sent in full, every epoch, in an automated manner, to Liqwid’s wallets and automatically distributed to ADA lenders.
Reasoning:
Liqwid’s sole stake pool operator continues to receive $2,000 per month to cover their infrastructure and time cost associated with proper functioning and block production from the LQWD pools.
Proposal Action:
Increase the minFee from 170 to 250 ADA per pool for both LQWD stake pools, bringing the total minFee to 500. Vote every 6 months or once the ADA price moves by 25% since the time of the last vote. This ensures more accurate pricing as ADA price fluctuates over time.
Conclusion:
This proposal aims to compensate LQWD SPO fully from a minFee increase of 170 ADA per pool per Epoch to 250 ADA.
Do you support this proposal?
- Yes
- No