Following up the discussion for proposal #258, the decision was made to split implementing the on-going token burning logic from the handling of the usage incentives pool, which were originally supposed to be brought on chain at the same time. As a follow-up, the team together with the validator community has decided to bring forward two proposals for how to proceed with the pool balance of ~136M EVMOS: Burn them or transfer them to the community pool. This proposal is concerned with the latter option.
Proposed Solution
Transfer the total amount of tokens in the user incentives balance to the Evmos community pool. The transfer will be performed as part of the next upgrade (v16).
Pros
Pushes the decision to the future on what to do with the 136M usage incentives tokens. The Evmos community can then create a governance community spending proposal to decide how to best use the tokens on different initiatives.
Alternatives for new incentive programs have been proposed such as creating a new community-driven decentralized Liquidity Incentives program (source). The tokens from this pool can be used on the new initiatives.
Doesn’t reduce the community-governed allocation.
Cons
Missed “momentum” opportunity to create and drive a positive narrative for Evmos.
The community pool is already “large enough” to use its current balance to provide further incentives.
The proposed alternatives for the use of the incentive pool tokens can already be accomplished with the Community Pool tokens.
Voting Options
This is one of two proposals, which are put to vote to decide on the matter laid out on Commonwealth. The resolution of both proposals will happen as follows:
If only one of the two proposals passes, that proposal will be automatically selected for the next upgrade.
If both proposals pass, the one with the largest voting power (i.e. votes) will be selected and the other one will be discarded.
If none of the proposals pass, a new discussion process will need to be initiated with the community to decide the future of the Incentives Pool tokens. Note that since prop #258 has already been approved, the pool won’t keep accumulating new tokens from inflation.
