Rational
Following the analysis presented here, the Liqwid Core Team recommends reducing the fixed LQ staking rewards rate from 5% to 2.5% APR (Annual Rate per Year).
This adjustment aims to address the current excessive net inflation and align emissions with the protocol’s actual revenue generation. The proposed change supports a more sustainable token economy and strengthens the long-term effectiveness of the Liqwid DAO’s economic model.
Proposed Change and Forecasted Impact
By reducing the staking rewards rate to 2.5%, projected analysis shows that net inflation would shift from +141.5k LQ to +68.5k LQ under current conditions.
This adjustment aims to:
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Restore balance between emissions and buybacks
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Strengthen the long-term value proposition of LQ
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Reduce short-term selling pressure
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Enhance capital efficiency and sustainability for the DAO financing
This governance vote is a strategic recalibration to align staking incentives with current protocol revenue and market conditions. Lowering the LQ staking rewards rate from 5% to 2.5% ensures the DAO remains competitive, resilient, and economically sustainable—without compromising the dual-benefit model that sets Liqwid apart.
Conclusion
The Core Team recommends the adoption of this proposal to change the Staking Reward Rate to 2.5% APR. If approved, the change will take effect immediately following the completion of the vote.
Do you support this proposal?
- Yes, I support this proposal to reduce the Staking Reward rate to 2.5%.
- No, I do not support this proposal to reduce the Staking Reward rate to 2.5%.