Proposal to Modify FLX Emission Schedule (July 2022)

I am generally in favor of the suggestions above however wanted to suggest something a bit more radical:

Could we test a small FLX subsidy to RAI minters? Like start out with 3-4% vs RAI minted (subsidy paid in FLX). At 6,000,000 RAI (current RAI supply), and $30 FLX, this would come out to about 33 FLX per day.

Early on, we had such a subsidy and got rid of it because people just minted and didn’t do anything with the RAI they minted. However that would not be an issue with this small subsidy: at ~2% APR vs the value of ETH locked in Reflexer (assuming 200% collateral factor), simply minting and holding RAI be riskier, more illiquid and lower yield than simply holding stETH, so farmers would farm stETH.

The goal here is to tip the balance in RAI’s favor vs alternatives, so that adventurous traders and orgs may consider minting some RAI and using it in actual economic activity (as opposed to perpetual motion machine yield farming).This will keep RAI in use and aid in getting integrations from other serious projects.

I suspect that giving DeFi natives a small subsidy and the freedom to allocate RAI however they see fit would be more capital efficient than picking a specific protocol and driving volume towards it (Idle, Aave, Fuse, Uniswap, etc). It also has the added bonus of giving real Reflexer users a say in the ungovernance process, while avoiding farm+dumpers.

I am pretty confident that a lot of projects will not survive this bear market but those that do will emerge extremely strong – we need to make sure Reflexer is one of those projects!

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