Reduce Trading Rewards by 80% + Increase Each Subsequent Week

Summary

Reduce Trading Rewards by 80% this period and then increase each week as the number of organic traders increases over the next month

Background

The Trading Rewards programme has been operating for 4 weeks and has been a great way to reward active traders, attract new users for the protocol, and distribute DVF to over 3500 community members.

Several potential improvements have already been suggested by community members to ensure the programme is a sustainable way to earn DVF as well as incentivising the correct behaviours on the platform. One great example is a suggestion to factor in staking and holding DVF into the rewards calculation!

Due to the holiday period we haven’t had the chance to consider any substantial improvements yet but please keep all those ideas and discussions coming so that we can evaluate in the New Year!

A few large accounts are still trying to farm the programme at the expense of real platform users and DVF holders. You could see this in action on Sunday when trading volume jumped to $20m from an average of $6m the previous few days (in what is the quietest trading week of the year across exchanges). Our rewards system programmatically tries to identify suspicious activity and exclude accounts from the rewards distribution, however there will always be some that slip the net and our team resources are much better deployed elsewhere!

Proposal

Therefore we have taken the decision to reduce the reward emission by 80% for the current period. Rewards will then increase each week in step with our goal of increasing the number of active users on the platform, for which we have a number of plans. You can see the draft rewards emission schedule on the original blog post, here and we will keep the blog post updated with the rewards for each period

Vote

  1. For

  2. Against - if the vote is against then we will reverse the changes

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