[MIP #57] - Changes to vlMGP Reward Structure to Exclude Cooldown State from SubDAO Rewards

Abstract

This proposal suggests modifying the reward distribution structure for vlMGP holders, specifically by excluding rewards for vlMGP in the cooldown period. Currently, rewards are allocated to all vlMGP regardless of whether they are actively locked or in cooldown. The proposed change would ensure rewards are only distributed to vlMGP actively locked, thereby increasing reward efficiency and fairness among long-term holders. This adjustment aligns with Magpie’s objective of rewarding sustained commitment within the ecosystem.

Motivation

The current reward system distributes rewards to all vlMGP, including tokens in the 60-day cooldown phase initiated by users unlocking their vlMGP. This structure inadvertently dilutes the rewards available to users committed to maintaining their vlMGP in an actively locked state. By excluding vlMGP in cooldown from receiving rewards, this proposal aims to increase the reward share for long-term holders, thereby incentivizing sustained engagement and boosting the overall value proposition of holding vlMGP. This approach aligns with Magpie’s commitment to a fair and sustainable reward system that prioritizes dedicated participants and enhances ecosystem stability.

Specification

Exclude vlMGP in the cooldown state from receiving SubDAO reward distributions.