Research Summary
The report discusses three significant governance actions in the crypto space: the backfunding of 26 projects for Arbitrum’s Short-Term Incentive Program, Sushiswap’s tokenomics revamp, and Rocketpool’s tokenomics overhaul. It provides an in-depth analysis of each proposal, its implications, and the likelihood of its passing.
Key Takeaways
Arbitrum’s Short-Term Incentive Program
- Backfunding Proposal: A proposal by SavvyDAO aims to backfund 26 projects that missed the initial 50m ARB cut-off in Arbitrum’s Short-Term Incentive Program. The proposal suggests increasing the total budget by 21.4m ARB to 71.4m ARB.
- Implications: If successful, the proposal could stimulate activity in the 26 projects and potentially have a positive price impact. Notable projects include Gains Network, Wormhole, and Vela.
- Passing Likelihood: The proposal has a medium to high chance of passing, with snapshot voting currently 97% in favor.
Sushiswap Tokenomics Revamp
- Revamp Proposal: Jared Grey, Head Chef of Sushiswap, proposed a tokenomics revamp aiming to create sustainable tokenomics. Key changes include LP locking, dynamic rewards adjustments, a boost distribution system, fixed SUSHI incentives, protocol owned liquidity, and governance changes.
- Implications: The move towards sustainable emissions is seen as positive, with protocol owned liquidity being a step in the right direction. However, the proposal needs more work to clearly explain the impact of the proposed changes.
- Passing Likelihood: The proposal has a medium chance of passing, with discussions currently not very developed.
Rocketpool Tokenomics Overhaul
- Overhaul Proposal: RPIP-30, a proposal to rework staking, is currently in its snapshot vote phase. The proposal aims to align RPL reward spend with rETH capacity created.
- Implications: The proposal could lead to less RPL being locked up at higher percentages of ETH staked, given that there are more restaking options out there that could give greater yields. This could increase rETH supply in the long term.
- Passing Likelihood: The proposal has a high chance of passing, with snapshot voting currently 89% in favor.
Actionable Insights
- Monitor Arbitrum’s Backfunding Proposal: Keep an eye on the progress of SavvyDAO’s proposal to backfund 26 projects in Arbitrum’s Short-Term Incentive Program. If successful, it could stimulate activity in these projects and potentially have a positive price impact.
- Assess Sushiswap’s Tokenomics Revamp: Evaluate the potential impact of Sushiswap’s proposed tokenomics revamp. The move towards sustainable emissions and protocol owned liquidity could have significant implications for the project’s sustainability.
- Investigate Rocketpool’s Tokenomics Overhaul: Consider the potential effects of Rocketpool’s proposed tokenomics overhaul. The proposal’s aim to align RPL reward spend with rETH capacity created could lead to changes in staking behavior and an increase in rETH supply.
