High-level summary:
- Burn 50% of ADEL supply — this won’t affect distributions to date
- Current LM epoch: extended to Wednesday, September 9
- Ability to claim rewards from UI: coming on Wednesday for next epochs
- Individual caps removed for AKRO & ADEL staking
- More LM updates and cap reviews coming soon
We distributed ADEL and the market has spoken. As of today, the total diluted value of $ADEL sits at a staggering ~$150M valuation with a token value of ~$2.40.
Recent events in the DeFi space have highlighted that a community governance token is only as strong as the community members and their willingness to support the project by holding the token.
Moreover, the current craze with yield farming appears to be winding down a bit (as shown by the recent marketwide sell-offs).
With this in mind, we believe that incentivizing long term growth via sustainable community rewards will reduce any sell-side pressure of ADEL and bring high-value contributors to our ecosystem. In this light, we will be improving our token model to maximize yield for our community members.
We believe that this lowered emission will incentivize better long term community growth versus short term gain for those migrating between protocols. We believe that there are minimal (if any cons) to this model, but please feel free to give feedback in our Discord. Information on the new model can be found below.
Decisions:
- Burn 50% of the ADEL supply: new 30mn TTS vs. old 60mn TTS;
- Double the ADEL emission term: new emission of 12 months vs. old emission of 6 months;
- ADEL Community Fund & Development Fund (5% of TTS for each) will be subject to the same new vesting as of the LM rewards: 12 months;
- Please note that the last week’s supply & LM rewards will stay the same with the current LM epoch extended to Wednesday, September 9;
- This epoch, the TVL caps on AKRO & ADEL staking pools will be removed and effected on Wednesday, 9 September to reduce operational load and give the community enough time to react;
- AKRO rewards accrued to Aug 31 will also be distributed on Wednesday, 9 September;
- AKRO and ADEL rewards for Aug 31 — Sept 9 will be distributed by Monday, September 14.
Motivation:
Watching the recent selloffs of LM tokens has made two things abundantly clear:
- Specifically, to protect our community members from harmful dilution and the accompanying downside risk to token price;
- having too high of valuation for yield farming tokens is detrimental to the projects success long-term;
- properly incentivizing stakeholders and sticking to those incentives in a transparent way is key in sustainable growth;
- incentivizing long-term users to stake their tokens in order to maximize their returns;
- reducing short term speculators from using Delphi or staking AKRO/ADEL for short term gains (LM rewards);
- shifting the incentives for more long term holders will outweigh the cons of short term price discovery for the overall success of Delphi;
- as on-chain governance systems only currently have modest turnout, we would like to reward our long-term users who participate in governance.
