This proposal would redirect the second stage of the USDC incentive migration process to the Community pool.

Background

Proposal 648 called for incentives on the OSMO/USDC.axl pool to be moved to the newly IBC native OSMO/USDC pool in two stages. The second stage occurs with the routine incentive proposal for November 2023.

This proposal asks that these incentives not be added to the OSMO/USDC pool but be redirected to the Community Pool.

The reasoning for this is that the OSMO/USDC Pool currently receives 3,213 OSMO per day, or 29% of all Incentive emissions, and yet has only attached $224k Liquidity despite high incentive rates.

The routine incentives proposal increases this to 5,700 OSMO per day, leading to a more inefficient use of Incentive spend.

This proposal would adjust the pool incentives as if the second migration had not been added by setting the OSMO/USDC incentives to 2,850 OSMO per day and redirecting the excess to the Community pool.

Forum Thread: https://forum.osmosis.zone/t/remove-second-stage-of-usdc-incentive-migration/586)