For the long term –
I like @carlj’s idea of having 3 years of runway for lender incentives in a degressive model. I tried making a rough draft below:
How the emissions curve (for lender rewards) could look:
Start with current emissions to lenders, decrease emissions by 25% every 90 days (Google Sheet)
- today: lenders farm 436k TRU/day
- 1yr from now: 184k TRU/day
- 2yrs from now: ~60k TRU/day
- 3yrs from now: ~20k TRU/day
How rewards would be split between pools:
Let TRU stakers set % of rewards allocated to each pool via allocation points in the staking gauge. Governance may decide to replace manual gauge staking via a performance-based mechanism in the future.
I also support @hal’s idea for incentivizing long-term TRU staking w/ boosted farm rewards. This could be a good mechanism for encouraging lenders to participate in staking and governance as the protocol matures.