We’re excited to share a thoughtful proposal brought forward by community member JCA, aimed at increasing engagement and responsiveness in protocol governance. This suggested update to the emissions vote cadence offers a simple but meaningful improvement to how we manage yield farming incentives—and we’re happy to help bring it to the community for feedback and discussion.
Context
The Sundae Protocol currently emits 395,614.283381 SUNDAE per day. This amount is adjusted by a governance vote every 90 days. Anyone can propose a reduction at any time, independent of this recurring vote, but in practice, nobody has exercised that ability. This proposal suggests updating that to a monthly cadence.
Background
Token emissions are a key part of the health of the Sundae protocol. We want them to be high enough to be attracting for liquidity providers, but low enough and overall deflationary to ensure the SUNDAE token retains it’s value long term. Adjusting quarterly doesn’t provide sufficient reactivity or opportunity for those emissions to decline. For example, if the DAO were to vote for a 10% reduction every time, we would only see a maximum decrease in the emission rate of 34%. Similarly, the 5% increase could only give a 21% increase in emissions to respond to increased market activity. This could be bypassed and accelerated via a dedicated governance action, but in practice the 3 month cadence has been enough to dissuade anyone from bothering. If, instead, we vote once per month, the maximum reduction changes to 72%, and the maximum increase changes to 79%. Monthly votes would serve to increase participation in governance, and re-activate a largely dormant SUNDAE community.
Proposal
Concretely, this governance action proposes updating the terms of the yield farming program, established by vote here and documented here. Voting YES on this proposal will replace the text “Every 90 days, a governance proposal will be automatically created with the following options:” with “On the first of each month, starting July 1st 2025, a governance proposal will be automatically crated with the following options:”.
The governance vote will have the following two options
- Vote YES to approve the change described above.
- Vote NO to reject the change described above.
Are you interested in voting in an on-chain governance vote to this effect?
- Interested