Summary
We propose to cut NOTE incentive emissions by 20% in accordance with the plan set out in NIP-80.
The proposed incentive cuts reduce emissions more heavily on Arbitrum, and more heavily on USDT than on USDC or ETH. This reflects three 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.
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Focusing on ETH and USDC over USDT as core currencies to aggregate activity and leveraged vault strategies.
Proposed Incentive Emission Cuts
| Token | Current Emission Rate | New Emission Rate | Change |
|---|---|---|---|
| ETH (Arbitrum) | 400,000 | 200,000 | -200,000 |
| USDC (Arbitrum) | 400,000 | 200,000 | -200,000 |
| USDT (Arbitrum) | 200,000 | 100,000 | -100,000 |
| ETH (Mainnet) | 1,900,000 | 1,700,000 | -200,000 |
| USDC (Mainnet) | 2,350,000 | 2,100,000 | -250,000 |
| USDT (Mainnet) | 750,000 | 500,000 | -250,000 |
| Total | 6,000,000 | 4,800,000 | -1,200,000 |