[Proposal] Increase TRU Staking Rewards

Moving a post from #ideas by @tylerw to an official proposal. -[Idea] Improve TRU farming incentives for TRU staking

Summary

As TrueFi v2 1 gets ready to launch and deliver improvements to the TRU staking model 2, it seems that farming incentives should also be improved for TRU stakers.

We believe an additional 100,000 TRU per day for stakers would help making staking more attractive.

Background

Community members have given critical feedback on the current state of staking and it is clear that the rewards do not match the amount of work & gas costs involved with constant staking/unstaking TRU.

Motivation

Increasing this staking incentives should drive more users to stake and start a positive feedback loop for the entire TrueFi protocol. Increased TRU staking can lead to more TFI-LP deposits farming TRU, more loans approved and issued, more fees generated for the protocol, and improved security for the TrueFi lending pool.

Specification

We propose that ~100,000 TRU per day (15.4 TRU per block) are rewarded to TRU stakers over the 90 day period following the contract upgrade.

This would represent an increase of ~16x from the current average rate (~6,000 TRU per day). After the 90 days, the intent is not to end this incentive distribution, just to formally revisit this decision.

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As discussed earlier, a vesting period on the rewards would help ensure governance has an interest in the long term success of the platform and mitigate dumping. A one year period, as used by Synthetix, would accomplish this.

Can we include that in the vote?

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Agree with @rattlecage . A vesting period for the TRU rewards over say a 90 day period (linear vesting) would be absolutely essential and should be included in this proposal.

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Hey @spidey & @rattlecage , we agree that vesting makes sense but don’t think it’ll be able to be part of the 2/19 unlock.

This proposal will look to increase staking rewards first, vesting can be implemented by governance at a later date.

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Partly because the current code is already undergoing audit if from what I understand.

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