- referring to the claim that Exchequer alone decides on the SOV rewards:
Exchequer does indeed have control over setting SOV rewards. However, Bitocracy controls a large part of the SOV reserves. Through SIP’s, the Exchequer committee is provided with portions of it.
See SIP-0048 - Strategic Investment in Sovryn - #3 by SOV_HOOLIGAN
and
SIP-0024: Liquid SOV Incentive Rewards for Staking By Choice
and
the exchequer budget SIP 34 Sovryn Improvement Proposals | S O V R Y N
Thus, the exchequer committee is already acting as an executive body within the framework made possible by the bitocracy. Accusations that this is done without the consent of the bitcocracy are false.
- referring to the SOV rewards:
the exchequer committee has been inactive for a long time regarding SOV rewards. As time went by, more and more voices in the bitocracy were raised that changes are important and demanded by the community.
This resulted in the Circle of tokens. Pretty much all changes to the SOV rewards, including SIP-24 staking rewards, were made at the instigation of the community and the Circle of Tokens. The Exchequer implemented the recommendations of the CoT. The important thing, in my opinion, is that these decisions were data-driven and carefully considered. The information and process for this can be found in this forum and was provided with a lead time for discussion.
However, the last two changes (ETH rewards from 5k to 0) and XUSD lending pool from 2.5k to 0, were made without data analysis and discussion, solely by the exchequer committee. I think this development is wrong and I am in favor of more transparency and room for discussion for such a process. I personally was against reducing the eth pool to 0, because this pool represents a lot of liquidity for a very low cost. Nevertheless, these actions by exchequer are consistent with the basic strategy of the CoT as outlined.
With the exception of the most recent amendments, there has been close cooperation between exchequer and the CoT, and the amendments have been mostly accompanied by consultations. As you requested.
- further thoughts:
creating SIP’s is complex. This is one reason why I have pursued a strategy with the CoT to make much needed changes to SOV rewards in such a way that SIP’s are not necessary. Of course, this method of implementation quickly reaches its limits. But I hope we were able to lay some important groundwork.
4: Rewards
Changes to rewards should not be made often. it is important for liquidity providers to be able to estimate rewards over a longer period of time. I think it is a good idea to vote on future rewards. Maybe a vote for each quarter. Maybe it is good to use SIP’s for this. Maybe this will also cause problems and an on-chain vote may not be necessary. The fact is that this requires a lot of work. It is good to have an executive body like exchequer at this stage to not slow down the processes even more.
The Circle of Tokens does not control SOV. We just provide data and analysis for discussion. However, if the bitocracy wishes to do so, we could consider providing the CoT or another organ of the bitocracy with SOV to be used for LM and other incentives. However, this already exists with the Exchequer committee.
Even if the status quo is not perfect, I think the current solution with CoT as analyst and Exchequer as executive body is actually good.
5: this SIP
I think this proposal could also be taken up in the next Exchequer budget SIP. If Exchequer wants to get new SOV from bitocracy for the coming year, they should also be able to show in what form the SOV will be spent on LM and incentives. If they can’t show this, bitocracy can still decide that they don’t want to provide this SOV. My point is that this yes or no vote already exists in a somewhat similar form, but in a higher framework.
Otherwise i find the vote proposed here for future rewards exciting. it also has a good presence to the outside world and i imagine bitocracy may be happy to be able to use the great voting system for such purposes as well.