Proposal: update the emission schedule

:arrow_right: VOTE HERE :arrow_left:

Original emission schedule / Proposed updated emission schedule

Given the recent Harmony RPC issues and rewards slowing down, we’ve been looking into a few solutions.

Also, World Snake Day is coming up on the 16th of July and we (the Viper team) have been discussing back and forth internally about doing something fun to celebrate the day of the Sneks.

That’s why we’re proposing updating the emission schedule and introducing the following changes:

2021:

  • Introduce “Snake Month” - an event starting June 21st and lasting for one month:
    • Week 1 (June 21 - June 27): 16x multiplier
    • Week 2 (June 28 - July 4): 32x multiplier
    • Week 3 (July 5 - July 11): 64x multiplier
    • Week 4 (July 12 - July 18): 128x multiplier
  • Better incentivize farming & hodling VIPER when we approach unlocks/Christmas:
    • Week 1 (December 20 - December 26): 16x multiplier
    • Week 2 (December 27 - January 2): 32x multiplier
    • Week 3 (January 3 - January 9): 32x multiplier
    • Week 4 (January 10 - January 16): 16x multiplier

2022:

  • Introduce “Snake Month” 2022 - starting 27 June 2022 and lasting for one month:
    • Week 1 (27 June - 3 July 2022): 8x multiplier
    • Week 2 (4 July - 10 July 2022): 16x multiplier
    • Week 3 (11 July - 17 July 2022): 32x multiplier
    • Week 4 (18 July - 24 July 2022): 64x multiplier

Pros:

  • Introduces a fun and dynamic event - Snake Month - with increased rewards to offset some of the lowered rewards issues that have happened as of late.
  • Introduces better incentives for hodling & farming VIPER when unlocks start in December 2021.
  • Introduces Snake Month in 2022 to make farming more dynamic and exciting also in 2022.

Cons:

  • The proposed emission schedule will accelerate the emissions and the 500m max cap will be reached at Viper’s 2 year anniversary at roughly 2023-03-08 vs the originally scheduled time frame of end of February 2024. Therefore, the emission schedule will effectively be shortened by almost a full year.

Considerations:

  • This is just a proposed emission schedule. Even if it ends up being accepted by the DAO, we can always vote for additional changes.

  • There is no certainty that Harmony blocks will go back to 2s and remain like that for all eternity. Even if the proposed schedule greatly reduces the timeline for when the cap is reached, increased Harmony block time might still result in the cap being reached long after 2023-03-08.

Next Steps:

This decision will be made entirely by the community/the DAO. Voting will commence at 24:00 UTC 15th of June and will run until 23:59 UTC 20th of June.

Correction:

The proposal on https://governance.harmony.one incorrectly states “Required votes (>55%): 55377683.183026874860353202 ViperVote”

The acceptance criteria is 55% of the tallied votes given the 10% quorum is reached.

Unfortunately proposals can’t be edited on https://governance.harmony.one after they’ve been submitted.

1 Like

In my honest opinion, our best bet would be to keep the schedule as is. Huge, sudden, fluctuations in rewards may lead to de-stabilization. Let’s focus on staying consistent instead of making changes on the spot.

Edit: Please vote NO

2 Likes

My vote is for NO as well. Increasing rewards now is like the Fed printing more money, it feels good when you get your stimulus check until you realize everything you own is now only worth half. Also, as the above poster mentioned, this has potential not only to hurt long-term value of the token but also cause huge impermanent losses again to newcomers buying up those tokens the veterans will be selling to them right before 128X week only to watch them crash back down after. Some just recently relived that again through LootSwap, just read the complaints on Harmony subreddit.

3 Likes

I’m partially in agreement with this proposal. I do like the idea of a celebratory emission and maybe instead of doing it over a month, do it for a week at something like 2x current rate and market the crap out of the event.

Although I generally would love the increased rewards today rather than later I do understand that long term goals should be the driving force behind the vision. Celebratory rate increases can be incorporated into this long term strategy. As long as there is a marketing strategy behind it to help drive awareness and utility.

3 Likes

IN total agreement with the proposal put forward by the Team.

It is good and will be healthy for the future of Viper.

Thank you Viper team for thinking of the little man.

I am in favor. We (and Harmony) are up against some mighty competition, and if we don’t start making waves now…it’ll be too late. Viperswap will speak for itself but it needs an audience!

Solana is making moves and tweeting about it daily - they’ll be the next ‘hype train - all aboard!’.

The updated schedule will ‘put butts in the seats’. Remember what we are competing with: Polygon, BSC, Uni/Sushi, and not to mention ADA finally doing something in August.

As long as it’s a community vote, I don’t think we need to worry about coming across as unstable.

That’s my $0.02 for what it’s worth, which is probably $0.00002

I think it is a good idea. Hype may bring more people in. Being concerned about the time it takes to reach total supply may not help that much. In my opinion, it is better to have a burn strategy to continue token rewards in future. Maybe implement a lotery with regular income for pool rewards, add another token that would also burn viper, like mochi tried with ONEMOON or find another way to take viper and move it to a reward pool. Maybe a hard cap was not such a great idea. A token burn is not that helpful because the total supply is capped, but a constant stream is needed in the reward pool.

Many people don’t understand consequences and only look on the side to increase their rewards. They need to understand that they will increase emissions and thus increase circulating token manufacturing. So for the price to go up, more money needs to come in than new tokens or otherwise the price will go down… I saw rumors of a new DEX coming in force and if, in addition to the migration of users seeking higher APR, we fail to attract investors to VIPER, ie we increase rewards and lose investors, it can be catastrophic in price. Just my opinion!

3 Likes

I do agree that there needs to be a balance between supply and demand. However, all new projects in general have a very large supply with little demand. It is through marketing, word of mouth, and great technology and usability that the demand side is grown. Price may drop in the interim for the early investor, which is why they are rewarded for taking on the risk.

IF, and only IF, the project is properly marketed, the project evolves its utility, and the project has a unique feature and function, is the demand for the utility. What differentiates VIPER from other “like” technology, what is its “niche”?

As far as I can tell from this point, its one of the first DEXs on the Harmony chain. Harmony is still in its infancy stage but has a lot of key points that ADA, MATIC, ETH don’t have but have plans for. What happens when they “catch up”? They have the demand because of the marketing. What is VIPER’s uniqueness beyond “one of the first”. High rewards is a key attractor to a technology. This is where the increased rewards will drive people to VIPER. What are the plans from VIPER to keep VIPER unique? How is it being marketed? These are the answers I’m still looking for.

I know it needs time to evolve, because Harmony itself is still evolving. I believe in Harmony and I’m willing to take a risk in VIPER, which is what I’ve done, but it does need to prove to be profitable for a long term investor like myself. Building up bags of tokens is the best way to build that confidence and offset the risk of early investing into 2 very young technologies, i.e. Harmony and VIPER.

At this point, I think you are wrong. At this point, the price of Viper should not matter. The important thing is to have long term perspective. I see no point in having a more expensive token, but fewer users. Having higher rewards will reduce the price of VIPER. It is obvious for anyone. You increase rewards to gain users, not to get more profit. At least not on the short term.
Rewards alone will not solve the problem of growth. There needs to be a way to make participation attractive for new users. That can only happen if the rewards continue to stay good eve when token emission ends. That means that some form of token emission has to be based on something users are willing to pay as fee of some sort. Having different type of games with prizes and a tax that funds the rewards of the DEX is a potential idea. There may be other ways. With limited supply, the idea of burns can’t work, so the only option is to build an entire community around the token. It is not easy and a larger team may be needed.

The snake moon event should be 1 week long. Being listed on a few exchanges will be enough to attract investors.

I had another idea pop to mind that should encourage long term investing into VIPER for rewards. What about a random generator for awards increase over a given month, with no posting of when the emission rate will increase?

The idea being that there is a base emission schedule in place, but through the random generator 3 times a week for an 8 hour period a timeslot of 8 hours is selected to increase the rewards by some X number. So for instance, the schedule calls for a 16x emission. 3 times a week, the random generator selects a 24x or 32x or even a 64x emission schedule for a period of 8 hours.

This would basically randomize the day and time frame for increased rewards incentivizing folks to stay staked and/or farming with VIPER. Could be marketed as such and get more folks interested in VIPER. It was just an idea I came up with. Not sure if this has been thought about or being utilized elsewhere, but this would be unique to VIPER if not done anywhere. Could run this for promotional periods throughout the year when activity is low and maybe peak the interest of new investors.

This would be an additional incentive to stay staked or farming to the regular emission rewards.

2 Likes

Disaster…
Missed discussion of this proposal.

Rather than increasing the number of emission now, I think it would be better to increase the number of emission at the end of the year and the beginning of the new year to reduce the price drop of unlocking.

This is a good idea.
The combination of LP withdrawal fees and the randomness of the reward multiplier, would encourage people to stay staked where they otherwise would have unstaked.
You would have to fiddle with the numbers to get something optimal to encourage people to stay staked, but I think this would contribute to longer term growth.