Abstract
This proposal seeks approval to reduce MGP emissions allocated to the mWOM pool by 50%.
The current emission rates are:
- 0.0054 MGP/sec on BNB Chain
- 0.0036 MGP/sec on Arbitrum
By halving these rates, Magpie aims to preserve the long-term value of MGP, improve the efficiency of its incentive strategy, and align emissions with actual pool performance and future opportunities.
Motivation
As Magpie continues to mature, maintaining the sustainability and value of MGP remains a key priority. Emissions to the mWOM pool were initially calibrated during periods of growth; however, recent activity indicates a plateau in staking growth, suggesting diminishing marginal returns on current emission levels.
Reducing emissions at this stage is a proactive step to mitigate inflationary pressure and optimize capital deployment. It allows for the reallocation of resources to more strategically impactful areas. Moreover, this move reflects our commitment to governance alignment, as a lower emission environment supports the integrity and influence of vlMGP holders over the long term.
Specification
Reduce MGP emissions to the mWOM pool by 50% on both BNB Chain and Arbitrum.