[Proposal] Increasing stkTRU gov participation & a look to future protocol spending

Proposal:

Increase stkTRU staking rewards from 0 TRU/day to 5,000 TRU/day.

Objective:

Attract more participation in staked TRU (stkTRU) governance.

Context:

As market dynamics shift and TrueFi prepares to bring on more deal flow, it would be beneficial to increase governance participation and activism within TrueFi.

TRU staked in the TrueFi staking module (stkTRU) is at a relatively low level. At the time of writing, there is ~40mm TRU staked (~4% of TRU circ. supply).

To attract more participation, governance could increase TRU emissions to stakers to 5,000 TRU / day.

Potential Impact:

This should encourage long-term TRU holders to stake TRU. At current staking levels, increasing emissions to 5,000 TRU/day would enable TRU stakers to generate ~4% APR.

The proposed 5,000 TRU/day emissions translates to 1,825,000 TRU/year (~0.2% inflation per year).

Currently there are 248mm TRU reserves yet to be minted. If we were to earmark 10% of reserves for future use towards stkTRU rewards, the DAO could sustain this rate of stkTRU emissions for 10+ years while reserving an additional ~225mm TRU for LP incentives and other ongoing operations.


Spreadsheet link: Proposal: TRU supply allocation updates - Google Sheets

Next steps & discussion

If this proposal receives positive feedback, it will move to an on-chain gov vote via Tally within the next 1-2 weeks.

Do you support increasting stkTRU rewards to 5,000 TRU/day?
  • Yes
  • No - 5k TRU/day is too low
  • No - 5k TRU/day is too high
0 voters
4 Likes

I support this proposal in its spirit to reimburse governance participation costs.

I support this proposal at well. I think having some incentive to stake TRU and participate in governance makes sense and will be good for the community!

1 Like

And additionally, I think 5k is a very modest amount, but I think it will still help with increasing the fraction of TRU that is staked.

1 Like

Personally, I believe a moderate APR of between 5.5 and 6% is more fair for above average contributions. At the bottom of the scale, in the absence of discussions, is more like 4%.

Most banks allow me to gain 5-5.6% on deposits over $100,000. We gotta do better than banks, surely!!

In the case of lower stkTRU levels, 4% is OK. But I believe the APR could be between 5.5% and 6% for higher TRU staking.

If % tiers of APR for varying quantities of StkTRU are not possible, perhaps airdrops for those staking higher amounts of TRU could be suggested. With the understanding that voting for government needs to take place to recieve airdrops.

Airdrops are an excellent reward for those making above-average contributions to the protocol. This may also drive more TRU purchases in order to receive a greater APR% in the form of airdrops when staking.

There could be a very basic airdrop tier for participating in voting, independent of the outcome or your voting decision. Something like, base 4% for staking + voting in more than % of the total governance decisions in a year (calculated and distributed once per year).

1 Like

I guess the 4% makes sense now actually. Best to stay under tfBILL yield… :thinking: