Summary

DeFi lending protocols often use rewards in the form of token emissions to boost supply and borrow APYs, in hopes of attracting new users. Nonetheless, high emissions rates increase the protocol’s token circulating supply, affecting the price negatively, especially in a bear market.

When market conditions are not favorable cutting emissions may have a positive effect on the protocol token price and could also create an opportunity for growth if used as an investment.

Lastly, the previously proposed and ratified prime token program is intended to serve as the strategic solution for boosted supply APY and borrow rate subsidies, ensuring that any valued integrators and protocol participants will continue to reap competitive rates.

Description

As approved in the previous Snapshot proposal here: Venus proposal: Proposal: XVS Emission Reduction (snapshot.org)

We are proposing the following:

• Reduce XVS emissions on supply and borrow markets by 50% of their current rate.
• Remove XVS emissions of supply and borrow for SXP.

For the complete details of the proposal, please see link below.

Proposal: XVS Emission Reduction - Proposals - Venus Community ","forDescription":"I agree that Venus Protocol should proceed and reduce XVS Emissions","againstDescription":"I do not think Venus Protocol should proceed with the XVS Emissions reduction proposal","abstainDescription":"I am indifferent to whether Venus Protocol proceeds to reduce XVS Emissions or not"}