Summary
stkTRU rewards are set to run out in ~12 days. On-chain governance needs to decide between minting TRU needed to refill the distributor, or turning off stkTRU rewards.
Background
The stkTRU rewards distributor address has only ~1.6M TRU remaining as of writing this. The current stkTRU rewards rate is 125,000 TRU/day. As such, rewards are expected to run out less than two week weeks from today (14 May).
It is important to address this issue within the next few days so that stakers do not accumulate TRU rewards that cannot be paid after the distributor has run out.
Governance owns the stkTRU contract (TFIP-2), and so an on-chain vote is required to adjust the stkTRU rewards rate.
To extend stkTRU rewards for another 90 days at the current rate, governance would need to mint TRU. This is needed because governance only has ~3M TRU available today between the treasury and incentive wallets listed here. Up to 250M TRU can be minted, as a result of the DAO Token Transfer, Burn & Mint.
Current stkTRU incentives
At current, stakers are receiving ~33% ROI in return for staking.
Stakers have exposure to one loan – a tfUSDC loan to TrueTrading due July 24.
It is not expected that stakers will have exposure to additional new loans in the near future. stkTRU is needed to participate in TrueFi on-chain governance votes.
Next steps
Based on outcome of this discussion and temperature check, I will work with Wallfacer colleagues to prepare on-chain vote(s) to go live by end of this week.
- Leave as is (125k TRU/day) + mint TRU
- End rewards (0 TRU/day)
- Reduce rewards (<125k TRU/day, but >0)
0 voters