Should we move veFXS to the gauge?

General Discussion
1

I would like to discuss the pros and cons of moving veFXS and the current veFXS rewards to the gauge so veFXS will have its own voting option in the gauge and the rewards that are currently paid to the veFXS investors are added to the 87,500 FXS weekly rewards.

Over the next few years emissions will drop and we need to look to protocol profits as a way to fund our gauge.

Right now only veFXS is rewarded by protocol profits and i feel we need to look at ways for us to have a smooth change over from emissions to rewards from protocol profits.

2

pro,
if the value of gauge rewards goes up (due to having the protocol earnings added) , then the value of each vote goes up too and this could result in bigger bribes for veFXS holders.

3

pro,
if the value of FXS rockets, then veFXS holders wont see a massive reduction in APR as they will get a share of emissions still.

4

pro / con,

The rewards paid to all pairs will now see a slight change based on the price of FXS.

if FXS drops then the amount of FXS rewarded goes up for the total amount rewarded by the gauge.

if FXS goes up then the gauges will have slightly less FXS to reward its investors.

5

con,
veFXS could all vote for veFXS and scoop up the bulk of the gauge rewards. this would be really bad to the FRAX ecosystem so maybe we should put a cap on the % of the pool that veFXS can have?

up to 20% maybe?

6

Gauges are Frax’s emissions/expenditures. Vefxs rewards are profits. Don’t think mixing them is the correct move.

1 Like
7

Clearly the gauge is rewarded from emissions and veFXS is rewarded from profit.

You may not think mixing them is a good idea, but why is that? is it the “i dont like change” mind set or is there a reason for not merging the 2 forms of rewards ?

The plan has always been to replace emissions based rewards with protocol earnings profit so if we dont mix the two at some point then do we just wait for the gauge emissions to run out first ?

personally i think its best if the handover from emissions to protocol profit is planned in advance and done as smooth as possible.