There’s no benefit in the Merit system for Sybil behavior.
As boosters are weighted on points accrued on the position itself.
Every merit action increases protocol revenue in the largest money makers (wETH borrow & GHO). Some merit boosters increase governance participation & favor long term holders & stakers.
Merit budget is based on protocol net profits once every service provider compensation is accounted for + buffer room for bounties/unexpected spend, it can be sustainable.
GHO borrows are especially profitable for protocol, with only 35M GHO borrow currently, GHO revenue is ~5% of overall DAO revenue. we expect Merit to help GHO grow and increase protocol revenue overall.
we think it’s precisely the wrong path to take. we’re in a highly competitive vertical with new actors having “zero revenue, print shitcoin-powered APY” policies. We also are in markets conditions favorable to grow GHO to a critical mass that will ensure it’s adoption, stability & appeal.
with the ACI we believe the Aave DAO should strike hard.