Summary
We propose to cut NOTE incentive emissions by 15% in accordance with the plan set out in NIP-80.
The proposed incentive cuts reduce emissions more heavily on Arbitrum (proportionally) than on Ethereum markets. This reflects two factors:
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The general decrease of activity on Arbiturm following the cessation of the Arbitrum incentive programs.
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The increased preference of Arbitrum users to sell NOTE incentives relative to Mainnet users.
Proposed Incentive Emission Cuts
| Token | Current Emission Rate | New Emission Rate | Change |
|---|---|---|---|
| ETH (Arbitrum) | 140,000 | 40,000 | -100,000 |
| USDC (Arbitrum) | 140,000 | 40,000 | -100,000 |
| ETH (Mainnet) | 1,700,000 | 1,514,000 | -186,000 |
| USDC (Mainnet) | 2,100,000 | 1,874,000 | -226,000 |
| Total | 4,080,000 | 3,468,000 | -612,000 |