[Proposal] Reduce TRU farm rewards by 30%

TrueFi’s tfUSDC and tfTUSD pools have shrunk considerably in size as of lately. Current TRU incentives have not attracted new capital or maintained capital in these pools, thus do not seem to be an effective use of TRU.

Reducing emissions can give the DAO a longer runway and bring TrueFi closer to sustainability. Below is my proposal for starting this process.

Proposal

Reduce total TRU farming emissions by ~30% as follows:

  1. Decrease tfUSDC emissions from 120,000 TRU/day to 60,000 TRU/day
    • 48,000 TRU/day to tfUSDC farming via liquidity gauge
    • 12,000 TRU/day to tfUSDC/USDC liquidity pool (as approved by @rattlecage’s proposal here)
  2. Reduce tfTUSD emissions from 27,000 TRU/day to 10,000 TRU/day
  3. Leave tfUSDT and tfBUSD emissions as-is (current utilization rates in these pools are >90%)

As we go along, we can further adjust emissions depending on loan activity within these pools. In the past, TrueFi has aimed to maintain target utilization rates of ~70-80%.

Please let me know your thoughts. If there’s support for these changes, I’d like to move this proposal to Snapshot tomorrow and enact these changes by end of week.

5 Likes

Seems reasonable to me! We are probably overpaying right now.

2 Likes

Snapshot vote is live:
https://snapshot.org/#/truefigov.eth/proposal/0x83fa7cf3cd29177f4a95be48f1586011dd1f795e770aa98d840911c39d460a8a

2 Likes

Thanks, w/ the last unlock done, it’s time to focus on fundamental fix of the tokenomics here. I’ll engage a bit more on discord over the coming weeks.

3 Likes

This will surely effect the ecosystem and perceived value in positive way! Since many long term investors and believers expecting some sort of action , this could catalyze it!

This Snapshot was approved and the change to emissions rates has gone into effect.

1 Like