Proposed to Reduce MGP Emissions and Change Liquidity Provider Rewards from vlGMP to MGP
Abstract:
Magpie is a BNB Chain native yield boosting platform built on top of Wombat Exchange. By locking WOM tokens on Wombat and accumulating veWOM, the protocol is able to provide increased benefits for DeFi users. This mechanism allows Magpie to earn and offer WOM tokens as the main source of rewards for its depositors. MGP is the governance token of Magpie and it allows users to access many benefits, investors can also earn MGP rewards by participating on the platform. However, as time goes by, there is a need to reduce the overall emission of MGP tokens in order to make it more scarce moving forward. To enhance the platform’s performance, this proposal aims to: Reduce the overall MGP emissions on Magpie, increase the MGP emission to offer more bribes to mWOM/WOM pools on Wombat Exchange, modify liquidity provider rewards from vlMGP to MGP, increase the mWOM weighting for MGP rewards, and stop MGP emissions for vlMGP holders.
Motivation:
The proposal aims to enhance the long-term value of the MGP token. It seeks to encourage greater participation among Magpie users by shifting liquidity provider rewards from vlMGP to MGP. This change may create a more engaging experience for our users while also broadening the platform’s opportunities for growth in the future. By rewarding liquidity providers with MGP tokens, rather than vlMGP, we look to facilitate the integration of Magpie into other protocols, which would further expand our ecosystem. Increasing MGP rewards for mWOM stakers encourages more users to acquire and stake mWOM and redirecting MGP emissions for vlMGP holders through the bribery market to encourage vlMGP holders to vote. By increasing the MGP emission for the WOM/mWOM bribes we encourage Wombat voters to further support both pools. Overall, these measures align with our commitment to provide our users with a rewarding and dynamic experience while positioning Magpie for long-term success.
Specification:
Change MGP emissions on Magpie
- Decrease MGP emissions per second from 2.0 MGP/sec to 1.2 MGP/sec
- Change rewards of liquidity providers from vlMGP to MGP
- Increase the mWOM weight for MGP rewards from 500 to 700
- Decrease the vlMGP weight for MGP rewards from 280 to 0
Change MGP emissions on Wombat
- Increase bribes to WOM Pool: 0.1 MGP/sec
- Increase bribes to mWOM Pool: 0.5 MGP/sec
Current MGP emission and distribution:
