Summary

This proposal updates the protocol's monthly reward parameters: node operator rewards are set to 0 WPAY per license per month, and a staking reward pool of 50,000 WPAY per month is established. The change reflects the evolution of the ecosystem following the launch of Wirex One and the adoption of Circle ARC as the default settlement chain — redirecting token emissions from infrastructure incentives toward long-term token holders and a more sustainable token economy.

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Motivation

Node rewards were introduced to support the network during its early growth phase. Those incentives did their job: they helped establish the initial infrastructure and bootstrap the ecosystem. Since then, two strategic developments have fundamentally changed the role of protocol incentives:

1. Wirex One has launched — a new generation of payment infrastructure with a simplified user experience and native stablecoin payments. The strategic focus shifts to product adoption, user growth, payment volume, and ecosystem participation.
2. Circle ARC is now the default settlement chain, providing the core infrastructure for payment processing and settlement. The protocol can rely on robust, enterprise-grade blockchain infrastructure rather than maintaining a separate reward program for node licenses.

This new architecture significantly reduces the need for standalone node-license incentives while opening the opportunity to align emissions with the participants who support the protocol over the long term. If the DAO does nothing, emissions continue to fund an infrastructure role the architecture no longer depends on.

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Specification

Proposed Parameters

Operator Rewards = 0 WPAY per license per month

Monthly Staking Reward Pool = 50,000 WPAY

Scope

• Node operator rewards cease for all node licenses.
• A monthly staking reward pool of 50,000 WPAY (600,000 WPAY annualized) is distributed to WPAY stakers.
• Changes take effect immediately upon proposal acceptance.
• Staking distribution mechanics (eligibility, lock terms, claim schedule) follow the existing staking program parameters; any change to those mechanics requires a separate proposal.

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Rationale

1. Evolution of the network architecture

With Circle ARC serving as the default settlement chain, payment processing and settlement run on production-ready infrastructure. This is a natural transition from an infrastructure-building phase to an adoption and utility phase — and emissions should follow that transition.

2. Launch of Wirex One

Wirex One shifts long-term protocol value toward usage: payment volume, user growth, and ecosystem participation. Incentives tied to infrastructure licenses no longer map to where value is created.

3. More sustainable token economics

Ending node emissions reduces ongoing token inflation while a fixed 50,000 WPAY monthly staking pool keeps incentives in place for committed community members. The result is a more efficient allocation of protocol emissions and a healthier long-term token economy.

4. Alignment with long-term holders

Directing monthly emissions to staking rewards encourages long-term participation, strengthens governance alignment, and rewards the community members who continue to support the ecosystem over time — consistent with WPAY's positioning of governance as the primary value driver (see WIP-001).

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Expected Outcomes

If approved, this proposal is expected to:

• Reduce ongoing token emissions.
• Improve the long-term sustainability of the protocol.
• Increase the proportion of rewards allocated to long-term token holders.
• Align protocol incentives with the strategic direction established by Wirex One and Circle ARC.

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Impact & Risks

• Node license holders no longer receive monthly WPAY rewards. Mitigation: license holders retain full access to staking and can redirect participation there; the transition is signalled publicly through this proposal and its discussion period.
• Stakers gain a predictable, fixed monthly reward pool, improving transparency of future emissions.
• Token holders benefit from reduced net emissions and clearer alignment between incentives and protocol usage.
• Key risk: reduced incentive for legacy node participants could lower engagement from that group. This is mitigated by the architectural reality that settlement now runs on Circle ARC, and by the open staking alternative.

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Voting

• For: Approve the proposed reward parameters (node operator rewards: 0 WPAY per license per month; staking pool: 50,000 WPAY per month).
• Against: Maintain the current reward structure.
• Abstain: Participate in quorum without expressing a preference.