Abstract
This proposal aims to reduce the emission rates of PNP tokens to achieve a targeted APR of 20% for mPendle staking pools. By strategically adjusting emissions, Penpie seeks to optimize revenue sharing and sustain the value of PNP tokens. This initiative is aligned with our long-term objectives of maintaining competitive yield offerings and enhancing stakeholder engagement within the ecosystem.
Motivation
The Penpie ecosystem’s success is closely tied to the strategic management of PNP emissions, ensuring the sustainability of token value while maintaining competitive APRs. The decision to stop emissions on Ethereum is due to its higher revenue share, which already puts the pool at a 20% APR, making PNP emission incentives unnecessary for maintaining engagement. In contrast, the reduction in Arbitrum’s emissions aims to balance the benefits derived from revenue sharing with Pendle and uphold a sustainable APR. The significant emission cut on the BNB Chain reflects its lower TVL, aligning emissions with network activity and strategic focus. These changes underscore our commitment to optimize PNP’s distribution, aligning with Penpie’s long-term objectives of fostering a stable and rewarding environment for its stakeholders.
Specification
We ask vlPNP holders to vote on whether to approve these adjustments to PNP emissions:
- Ethereum: Cease PNP emissions for mPendle staking.
- Arbitrum: Reduce emissions by 25% for mPendle staking and 66% for the Stability Vault.
- BNB Chain: Lower mPendle staking emissions by 70%