[TEMP CHECK] Joint Incentive Program With Polygon

Thanks for the support Panda!

Thanks for the support Devin!

Ha, so you tried to see if there are dumbs here, fail, and now try again? Polygon annual inflation is 2%. Telling it is 1% is a pure lie, but what to expect from Polygon as its plans is to grow through politics, thus the inflation.

Yes ETH is taking care of its inflation, go to talk with your superiors to fix POL inflation so they will be able to make your job easier, otherwise you will have a hard time around serious projects that actually take tokenomics seriously.

AAVE supply for instance has 16M cap, so it’s emissions don’t act as a long term excruciating curse as it is POL’s case.

There is no situation Aave is stuck in, POL management has decided to trash their tokenomics, the consequence is to have a trash token, simple as it can be.

POL has no Cap, you’ll have a easier result approaching No cap inflationary projects.

Fair points Ezreal. Does your name have any connection to League of Legends btw lol?

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Thanks for your support Aztec! :purple_heart:

I apologize, you’re correct. I mis-spoke. It is 1% to the CGP, and 1% to Validators for a total of 2%. I was not lying. I had to dig through docs to find this now. Originally it was supposed to be 1% if my memory serves me, I thought it was going to be 1% for 10 years, with some front-loaded to start the grants program with a treasury since it would take time to build anything up with a normal vesting contract. It’s 2am, and I’m going off memory for discussions that happened 1-2 years ago, some during ideation and community discussion stages. I think the front-loading aspect maybe didn’t end up happening, and 2% happened instead. I don’t remember.

Either way, it is lower than most projects in the industry. Doge is ~3.5%, Bitcoin is ~.85%, Aave is ~2.3%, Solana is 4.8%, DOT is 10%, ATOM is 7-20%. US Dollar is 7% (we’re talking about monetary inflation, not price inflation btw). I used ChatGPT for some of this, so if it’s wrong you don’t need to call me a liar lol. A lot of these numbers are not the whole picture though, many projects even with max cap supplies still have inflation for short, medium, or very long term durations. I didn’t come here to have a debate about inflation though, but I’m trying to be respectful and answer everyone’s comments/questions/concerns here. Have a good night.

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Ok

Bitcoin and AAVE both have a maximum cap, which is a superior league :muscle:

POL, SOL, DOGE and USD are all in the infinite monetary expansion league.

All good.

Well Polygon decided to be greedy, the POL migration and Inflation implementation sounded like a light rug, a debate about inflation is the minimum that the Temp Check should have when Polygon’s side of the offer are assets that should not exist to begin with.

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Thanks for your well motivated reply. We don’t have to agree on the potential outcome of this but I appreciate your opinion.

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I support this proposal, have been using AAVE on Polygon already in the past and appreciated the product. I’m positive on both communities and projects.

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To move forward with this proposal if community decide so, and to avoid more congestion on this thread, ACI has posted a TEMP CHECK Snapshot for the current proposal, that will be live tomorrow. We encourage everyone to participate.

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Thank you ACI. Appreciate it!

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I’m a fan of what you’ve outlined here Roc, really well thought out and I think it will be beneficial for both ecosystems

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We are a new user of Aave on Polygon bringing new money from Tradfi and would support this proposal. Btw the proposal date should read 2025…

I’m a holder of both POL and AAVE, yet I am not in favor of an incentive at this proportion. A 2:1 ratio seems more acceptable in my opinion. Additionally, I want to point out that some blockchain foundations fully finance their incentives, such as Ava Labs for Avalanche.

Therefore, I vote NAY on this Temperature Check.

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As Michigan Blockchain, we have voted against this proposal. We acknowledge the Polygon Community Treasury Board’s efforts to strengthen ties with the Aave community, however, we think that the incentives are not enough to revive Aave on Polygon PoS, and we believe that Aave was asked to contribute more in incentives than they are supposed to.

First of all, over the last year, the TVL of Aave on Ethereum, Arbitrum, Base, Avalanche, and other notable chains have been in an uptrend, with Polygon PoS being the exception among popular blockchains: Aave TVL on Polygon has been stagnant. We don’t think a total of $3m in incentives will do anything significant in breaking this downtrend, as the TVL ($403m) to incentive $3m ratio is just too small. For comparison, Mantle which will be integrated into Aave has agreed to provide $110m in liquidity incentives. Polygon’s underperformance compared to other chains like Arbitrum cannot be attributed to a lack of incentives.

The only issue we see in this proposal is not the incentive amount, but the way incentives are planned: Polygon requests Aave to contribute $1.5m of the $3m total. Let’s look at Sonic and Mantle that are going to be deployed on Aave. Mantle did not request Aave to fund incentives. Instead, Mantle itself committed substantial liquidity incentives, including $19.2 million worth of MNT tokens, $20 million in stablecoins, $20 million in ETH, and $50 million in other assets, to support Aave v3’s deployment on its network. Additionally, Mantle’s Metamorphosis Season 2 program provided further user engagement rewards. Unlike Polygon’s proposal, which asked Aave to match its $1.5 million contribution, Mantle took the initiative to fund its own incentives without relying on Aave’s treasury. If Mantle, a newcomer to the Aave ecosystem allocates these large amount of funds themselves and does not expect funds from the Aave treasury, Polygon which has been in the Polygon ecosystem for years should not be expecting half of the incentives from Aave due to their own lack of performance and innovation.

While Sonic did request a partial contribution from Aave, the majority of the incentives came from Sonic itself: $1.8m of the $2.6m. Sonic proposed these incentives to encourage liquidity migration and adoption of Aave v3 on its network. However, this is still different from Polygon’s proposal, where Aave was asked to contribute equally ($1.5 million AAVE to match $1.5 million POL). So, while Sonic did request Aave to help fund incentives, it was a smaller portion compared to the full amount requested by Polygon.

Again, if new chains to the Aave ecosystem can allocate these large amounts themselves without expecting it from Aave, Polygon cannot be demanding half of the incentives from Aave. Half of Polygon PoS’s $851m TVL is on Aave ($403m), so Polygon relies on Aave rather than the other way around, so they should be expected to contribute at least 80% of the incentives.

-Kerem Dillice

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After Snapshot monitoring, the current TEMP CHECK Snapshot finished recently, reaching out both Quorum and NAY as winning option, with 695.3K votes, and 107K abstain votes.

Therefore [TEMP CHECK] Joint Incentive Program With Polygon has NOT PASSED.

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