XIP2 - Reward Update Proposal
Reference Links:
Double reward week has started BLOG
ELI5
Rewards from 17h00 UTC 27 Oct ’21 are expected to return to 25% of emissions to XBE Staker/Lockers and 75% to Sushi liquidity providers. After release of “Unpacking XBF” blog, some community members requested to extend XBF rewards for Sushi LPs. Team is proposing an additional option to reward both XBE Staker/Lockers and Sushi LPs with L2 XBF gov tokens only, to support Hive mainnet testing and deployment.
Motivation
We are currently at day 6 of Double Reward week where double the normal weekly XBE emissions is being distributed to XBE Stakers/Lockers and 720 L2 XBF governance tokens are being allocated to staked XBE/ETH Sushi LPs.
A community proposal originated yesterday in the official XBE Finance telegram channel to extend the current Layer 2 XBF gov token rewards for XBE/ETH Sushsiwap LP staking, from 17h00 UTC 27 Oct ’21 for next week – at NORMAL reward rates being 192 XBE emissions and 360 L2 XBF Governance Tokens (half of the current double reward week rate). This proposal would also see 100% of the next week’s 192 XBE emissions being allocated to Single Sided XBE Stakers / Lockers which would include the XBE emissions usually allocated to Sushi LPs.
Having considered the normal XBE emission split of 75% to Sushi LP and 25% to XBE Staking against the Community proposal, the founding team want to propose a further option to give ONLY L2 XBF governance token rewards to BOTH our Sushi LPs AND our XBE Stakers/Lockers – which would allow our technical teams a further window of no XBE rewards during which the live reward contracts can be reconfigured and tested together with the Hive Audit Updates.
Because the Hive contracts are directly related to the XBE Emissions, Controller, and Reward contracts, current deployment and testing is more challenging as we have to be very careful not to make changes to these on mainnet that could impact active rewards – and the team’s priority remains launching XBE Hive as soon as humanly possible.
The team’s proposal would allocate L2 XBF gov tokens a week in an equal split of 360 L2 XBF gov tokens each between XBE Staker/Lockers and another 360 L2 XBF gov tokens shared to staked XBE Sushi LPs.
Currently the reward contracts are still configured to share 100% of the XBE emissions to XBE Stakers/Lockers – so if the community decides on returning to 75% of XBE emissions to Sushi LP and 25% to XBE Stakers rewards will start slightly later than 17h00 UTC on 27 Oct ’21 to allow time to update the reward weightings. The other two proposed options should present no delays to take effect.
The following three options are therefore being proposed for veXBE holders to vote on for the reward allocations from 17h00 UTC 27 Oct ’21 (allowing for slight delay if option 2 is selected).
Option 1 – EXTEND SUSHI L2 XBF
Sushiswap LP rewards share 360 L2 XBF gov tokens. This would mean Sushi XBE LPs would be rewarded entirely in L2 XBF gov tokens, and XBE Stakers/Lockup would earn all of the 192 XBE emissions per week.
Option 2 – XBE EMISSIONS ONLY
Revert back to 75% of XBE emissions as rewards for Sushiswap and 25% to XBE Stakers/Lockers. No additional XBF rewards for anybody for this period. This would mean Sushi XBE LPs AND XBE Stakers/Lockup would be rewarded in XBE only.
Option 3 – TEAM PROPOSAL (L2 XBF for Sushi LP & XBE Stakers)
Reward BOTH XBE Staker/Lockers AND Sushi LPs in L2 XBF gov tokens (360 XBF each for a total of 720 XBF/week) until Hive Launch updates and final test are completed on mainnet.
All XBE rewards are paused and compounds until after the L2 XBF rewards end, when they will be distributed on top of normal emissions as another bonus to XBE Staker/Lockers and Sushi LPs.
The UI will be updated to reflect this correctly on both app.xbe.finance and easy.xbe.finance. This process significantly reduces the technical complexity and risk for Hive launch preparation, allowing the team to focus entirely on the Hive redeployment with audit fixes and then concluding the final live mainnet tests.
The voting will run from 17:00 UTC on 26th October until 17:00 UTC on the 27th October.
Snapshot Link for voting: Snapshot