Deflation Mechanism
We want to propose a vote to reduce the minting per block by 2 NIU per block lowering the output from the current 10 NIU per block to 8 NIU per block in the first month and 6NIU for the second month. In the third and final month we want to decrease it by 1NIU to reach our end goal of reducing our minting by 50% in three months. Subsequently, this reduction in minting will also decrease the APR in our pools as lesser NIU will be printed. However, we plan to bridge the gap by increasing our multiplier in the pools.
Reasons for the Deflation.
We have been minting too much NIU since the inception of Niubiswap and it is no secret one of the biggest barriers derailing our progress to the next level in terms of both price and TVL. We propose to reduce the minting to also reward holders thus reducing the circulation and in effect increasing the price. We want to make holding NIU tokens beneficial to the users and community.
HongBao Special Pool
Going forward, we want to direct more attention to our Hongbao Special pool, to bring in more tokens, especially those that the users have voted for. This will ultimately widen the variety of new projects such as Bogged Finance, Safemoon and Powerpool that people can invest in through our established platform. It will also allow us to give stakers the opportunity to earn rewards through popular and established tokens like BNB and DOT.
Furthermore, we are actively looking for collaborations with other Yield farms to cross list each other’s token and give rewards in our respective pools. We believe that the high minting rate per block may adversely affect the success of these ventures and the value of our token. Therefore, reducing the emission rate will make our token scarcer, more useful and highly rewarding for the holders interested in exploiting these exciting opportunities.
Conclusion
The main goal of this proposal is lowering the minting of our token by 50% within three months from 10 NIU per block to 5NIU per block.
We believe that having less NIU in circulation will potentially result in higher price but a loss in APR for yield farming in the near term. In the long term, however, we perceive that the net benefit for our token holders will outweigh the losses thus making it a sound initiative for the whole NIU community.
This proposal is a well thought out initiative that is meant to bring additional utilities to NIU and its stakers. As such, our intentions for putting forward this proposal is to make holding and staking NIU more enjoyable and rewarding.
Now the proposal is in the hands of our community of holders and shareholders as they get to cast their votes on the direction that Niubiswap takes.
https://snapshot.org/#/niubiswap.eth/proposal/QmcCkGvJy53UfvFfASeaAUjCjX5xud5xaWycQXKeM784hi
