Summary
This proposal seeks to compensate users affected by the recent programmatic distribution rewards issue in which some long-term LQ stakers saw lower than expected rewards according to the most recent programmatic distribution rewards model.
Context
In the last two programmatic distributions, starting on the 1st of July and ending on the 26th of August, LQ stakers who’d been consecutively staking LQ for periods longer than 6 and 12 months, were supposed to receive 3x and 5x boosts, respectively, on their staked value to increase their share of the rewards within the programmatic distribution rewards.
Due to an issue that was detected in the programmatic distribution rewards calculator only after distributing these two periods of rewards, some of these users have been negatively affected in a way that their stakes weren’t boosted the exact amounts mentioned above, unfairly leaving them with lower than expected rewards.
The unclaimed parts of these two distributions have been frozen as to minimize further damage caused by the calculator issue until proper governance action is taken, which is what this proposal envises to do.
A fix has been made to the programmatic distribution rewards calculator, which has allowed us to make an assessment of an unfairly distributed ~10.9k ADA.
Solution
With this proposal, the core team is seeking to compensate negatively affected users with ~10.9k ADA from the Liqwid DAO treasury.
Users who’d originally been over-rewarded in the distributions and who have not yet claimed their rewards will have their balances re-calculated, leaving them with fair rewards in order to minimize the ADA that needs to be paid from the treasury.
Users who’ve claimed their less-than-fair rewards will see new rewards equal to the delta between their fair rewards and their under-calculated rewards ready for claiming.
Users who’ve not claimed their less-than-fair rewards will see new rewards to claim altogether, equal to their fair rewards according to the correct model.
Conclusion
The Liqwid core team recommends the adoption of this proposal to compensate underrewarded LQ stakers with ADA from the Liqwid DAO treasury.
Do you support this temperature check to compensate users affected by the programmatic distribution rewards issue?
- Yes, I support this temperature check.
- No, I do not support this temperature check.