# Proposal to improve Liqwid: Enhancing Utility and Value of the LQ token
**URL:** https://gov.liqwid.finance/t/proposal-to-improve-liqwid-enhancing-utility-and-value-of-the-lq-token/1553
**Category:** Uncategorized
**Created:** [March 29, 2024, 1:10pm UTC](https://gov.liqwid.finance/t/proposal-to-improve-liqwid-enhancing-utility-and-value-of-the-lq-token/1553 "2024-03-29T13:10:21Z")
**Posts on this page:** 2
**Page:** 1
### Author:  [@AliD](https://gov.liqwid.finance/u/AliD)
#### Post date: [March 29, 2024, 1:10pm UTC](https://gov.liqwid.finance/t/proposal-to-improve-liqwid-enhancing-utility-and-value-of-the-lq-token/1553/1 "2024-03-29T13:10:21Z")
LQ token holders to enjoy enhanced utility benefits, a system that rewards LQ holders with increased interest earnings on their supplied assets. To qualify for this utility, token holders must _stake_ or _hold_ a minimum of **X** number of _LQ_ _tokens_.
By _staking/holding_ LQ tokens, holders will receive a substantial boost in their interest returns, with those _staking/holding_ reaching 90% return on their supplied assets, compared to the standard 80% return. This initiative not only empowers token holders but also aligns incentives by reducing sell pressure on the market, potentially bolstering the overall value of the LQ token.
In addition to increased interest earnings, more participants of the protocol whom previously weren’t holding LQ are now incentivised further to become holders of LQ thus increasing participation in governance decisions, granting more LQ protocol participants a voice in the platform’s evolution.
| LQ holder rates | Current | Proposed |
| --- | --- | --- |
| **Suppliers** | 80% | 90% |
| **Market Reserve** | 10% | 5% |
| **DAO Treasury** | 0% | 0% |
| **LQ Stakers** | 10% | 5% |
Currently, 80% of interest in each market accrues to suppliers with the remaining 20% split evenly across the LQ Stakers and the market reserve. This proposal will see that 90% of the interest in each market accrues to suppliers, with the remaining 10% split evently across LQ stakers and market reserve.
Impact of this change on the Liqwid protocol and LQ token;
1. Increase in the number and percentage of LQ protocol participants to become long term holders of the LQ token
2. Reduce sell pressure on the LQ token
3. Increased buy pressure on LQ token
4. Increased number of users hodling LQ
5. Buy value remains in the LQ token due to hodlers
6. Reward participants for holding LQ by increasing the % interest they receive
7. Increased asset supply due to increase in accrued interest split with suppliers from 80% to 90%
_Now imagine the impact this will have on the value of the LQ token when the protocol reaches 100k-1mn users._
This proposal should also be read in light with my other [proposal](http://govnew.liqwid.finance/t/proposal-to-improve-liqwid-lq-token-to-be-the-beneficiary-of-liqwids-success/1560)
Everyone wants more APY, this is great way to create a tiered membership system, suppliers receive 90% of interest for being a Gold/Platinum member by holding X number of LQ tokens.
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### Author:  [@ConkeyKong](https://gov.liqwid.finance/u/ConkeyKong)
#### Post date: [April 15, 2024, 3:26pm UTC](https://gov.liqwid.finance/t/proposal-to-improve-liqwid-enhancing-utility-and-value-of-the-lq-token/1553/2 "2024-04-15T15:26:54Z")
I enjoyed reading this. I would say, though, that this looks to diminish the LQ token as there is a reduction in earnings for LQ stakes and an increase for suppliers. For an LQ holder to benefit from this, they must be both a Supplier and an LQ stalker, which would expose them to additional risks to earn the same revenue share.
I also wouldn’t want to reduce the Treasury any, or at least not until it accumulates enough resources to help fund the protocol.
I have seen other recommendations that the LQ staker could benefit from a discount on Loan origination fees.
> [@AliD](#):
>
> | LQ holder rates | Current | Proposed |
> | --- | --- | --- |
> | **Suppliers** | 80% | 90% |
> | **Market Reserve** | 10% | 5% |
> | **DAO Treasury** | 0% | 0% |
> | **LQ Stakers** | 10% | 5% |
Maybe this turns into
| LQ holder rates | Current | Proposed |
| --- | --- | --- |
| Suppliers | 80% | 70%( with 10% boost when staking LQ) |
| Market Reserve | 0% | 0% |
| DAO Treasury | 10% | 0% |
| LQ Stakers | 10% | 0% |
Currently- the Market Reserve and DAO were swapped by Governance vote #7 - your original intent is still understood, though. [Liqwid App](https://app.liqwid.finance/governance/proposal/7)