Proposal to decentralize farming reward distribution

DAO Discussion
1

SUNDAE is facing a concerning concentration of delegation to only 4 pools that drain SUNDAE capital and do not benefit liquidity providers of other pools. This concentration could lead to a lower decentralization of the DEX and increased volatility of the SUNDAE price to the downside.**

I propose that Sundaeswap implement a measure to limit the concentration of votes in liquidity pools. This measure could consist of

  • Limiting the percentage of votes that a wallet can assign to a single liquidity pool.
  • Limiting the percentage of votes that a liquidity pool can receive in total.

Both options have the potential to decentralize the distribution of farming rewards and increase the participation of new pools

The option 1 would be easier to implement, as it would only require modifying the code to limit the number of votes that a wallet can assign to a single pool.

The option 2 would be more complex to implement, as it would require modifying the code to calculate the percentage of votes that each pool receives in total.

I believe that the proposal to limit the concentration of votes is an important idea that could help decentralize the distribution of farming rewards and increase the participation of new pools. I recommend that Sundaeswap implement the option 1 immediately and consider implementing the option 2 in the future

Explanation

This proposal is important because it would help to decentralize the distribution of farming rewards. This is important for the following reasons

  • Decentralization is a fundamental principle of cryptocurrencies.
  • Decentralization helps protect users from market manipulation.
  • Decentralization helps promote innovation.

In addition, this proposal would help to increase the participation of new pools. This is important because

  • New pools offer new opportunities for liquidity providers.
  • New pools help to increase the liquidity of the DEX.

In conclusion, I believe that this proposal is a good idea that would be beneficial for Sundaeswap

Option 1, Limit voting power of wallets

  • A- Voting power Maximum 5%.
  • B- Voting power Maximum 10%.
  • C- Voting power Maximum 15%.
  • D-Do not modify
0 voters

Option 2, Limiting the power of POOL Voting

  • A- Voting power Maximum 5%.
  • B- Voting power Maximum 10%.
  • C- Voting power Maximum 15%.
  • D-Do not modify
0 voters

If both proposals are passed then both would be implemented.

If both proposals are approved, then both will be implemented. Option 3 will be determined by the percentage of votes received for each option.