RFP-2: Emission Reductions - Core: Ecosystem Fund Allocation
AI summary
This proposal aims to reduce the rate at which new RDNT tokens are created and distributed on the Arbitrum network by 50% for lending and borrowing activities. This is being done to make the Radiant protocol more sustainable in the long term, as the current rate of token creation, known as 'emissions,' is too high compared to the fees the protocol generates. The proposal also suggests creating a new 'RDNT DAO Reserve,' a special digital wallet controlled by multiple parties, to manage future token emissions for new blockchain deployments and other significant changes.
If this proposal passes, the supply of new RDNT tokens on Arbitrum will decrease, potentially making existing RDNT tokens more valuable due to increased scarcity. This change benefits current RDNT holders by reducing dilution and aims to ensure the protocol's long-term health, but it might reduce the high yields currently enjoyed by users providing liquidity or borrowing on Arbitrum. The creation of the RDNT DAO Reserve will give RDNT tokenholders more direct control over how tokens are distributed in the future.
Voting results
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ABSTRACT
This proposal seeks to address the long-term success of the Radiant protocol by means of adjusting the rate of Arbitrum RDNT emissions to more sustainable levels.
MOTIVATION
Whereas the front-loaded emissions structure was a tool used to promote utility for RDNT, Radiant Capital is currently “over-emitting” into the protocol, relative to the protocol fees being generated. Consequently, this emissions structure dilutes current RDNT in circulation at an unsustainable rate.
In order to achieve Radiant’s omnichain vision, we must earm…