PNP Emission Reduction in Ethereum, BNB, and Optimism mPENDLE Staking Pools
Abstract
Penpie is committed to enhancing yield for users of Pendle Finance across various blockchain networks. This proposal suggests a strategic reduction in PNP emissions by 50% for the Ethereum, BNB, and Optimism mPENDLE staking pools.
We aim to gradually increase the scarcity of PNP, thereby potentially enhancing its value over time. This adjustment aligns with Penpie’s goal while taking into consideration the growth of Penpie’s locked PENDLE percentage to 34.66% consequently impacting Penpie’s revenue share from Pendle distribution.
Motivation
The rationale behind this proposal stems from the need to balance the initial support provided to mPENDLE staking pools with the long-term objective of increasing Penpie’s vePENDLE treasury. This strategy is expected to naturally elevate the rewards given to mPENDLE staking pools, without excessively diluting PNP. As our Locked PENDLE percentage has grown, Penpie collects a fair share of revenue from Pendle, of which 12% is distributed to mPENDLE stakers on every chain. It’s crucial to adjust the emission rate to sustain the ecosystem’s health and ensure the longevity of PNP’s value. This move is expected to support our users while also prioritizing the augmentation of Penpie’s vePENDLE treasury, ultimately benefiting the entire ecosystem.
Specification
Reduce PNP emissions rate by 50% for Ethereum, BNBchain, and Optimism mPENDLE staking pools, aiming to increase scarcity and value of PNP.