MIP #21: Reduce $MUSE emissions to LPs

Summary

Liquidity mining incentives are set to end when 1 million $MUSE has been issued, that is around October 21st 2022 at current emission rates. I propose we reduce emissions to LPs so that liquidity is incentivized for longer on Uniswap.

Overview

Currently 250 $MUSE is distributed to MUSE/ETH LPs daily, there are around 25,514 more $MUSE to be minted which would end emissions in 102 days, around Oct. 21st.

1,000,000 (Max supply) - 974,486 (Current supply) = 25,514
25,514/250 = 102 days left for emissions

If we reduced emissions by:

25% = 187.5 daily and gives ~136 days, Nov 24th 2020.
50% = 125 daily and gives ~204 days, Jan 31st

Having liquidity on decentralized exchanges is good for people who do not wish to or can’t trade on cexes. This would also give the DAO more time to think about long term strategies for liquidity needs.

Check out the results on the Snapshot vote