H2 2023 INV Mint Proposal

Inverse Finance DAO
1

H2 2023 INV Mint Proposal

Summary

Mint 60,000 INV tokens to the Inverse Finance DAO treasury so that the following DAO operations can continue: xINV staking rewards, DOLA liquidity incentivization, INV liquidity incentivization, bonding and OTC swaps.

Background

Since the launch of INV+ in January 2022, the tokenomics of the INV token has been inflationary, with regular DAO proposals to execute on the mints. The key principle of INV+ is to ensure that INV stakers are protected against inflation via the dilution protection program. This is where the Policy Committee ensures that a larger portion of Treasury INV is directed towards INV stakers compared with what is used in operations such as liquidity incentives and bonds. This ensures dilution protection for stakers, at the expense of non-staked INV holders (such as INV LPs and holders on CEX’s).

Overview

This proposal seeks to mint 60,000 INV to allow for continued DAO operations for the next 3-6 month period. After the previous mint in Q1, due to lowered total INV inflation, the mint amount lasted longer than forecasted. While the expectation that a similar pace of INV inflation will continue over the next few months of DAO operations, it should be noted that as lending on FiRM scales up, a heightened INV expenditure may be needed to facilitate the deeper liquidity requirements. This minted supply will support the necessary resources for the following activities:

  1. xINV Staking Rewards: Allocate a portion of the minted INV tokens to provide staking rewards to xINV holders. In line with our dilution protection program, the allocation will match INV spent supporting other functions, and rewards will be updated biweekly if needed to account for any change in INV spend during the specified period.
  2. DOLA Liquidity Incentivization: Allocate a portion of the minted INV tokens to bribe ecosystem stakeholders either privately or on platforms such as Hidden Hand to drive incentives for liquidity providers in DOLA pools on supported decentralized exchanges. Note, Inverse Finance DAO treasury holds emission-controlling tokens that are utilized in support of this function.
  3. INV Liquidity Incentivization: Similar to DOLA liquidity incentivisation, a portion of the minted INV tokens will be utilized to incentivize liquidity providers in INV pools.
  4. Bonding: Utilize a portion of the minted INV tokens to support the bonding program. The Policy Committee makes use of the bonding service offered by Bonding Protocol (previously Olympus Pro) to cover DAO operational expenses and pay down bad debt. Users have the opportunity to purchase locked INV tokens at a discount, and any changes to the bonding process, duration options, and reward mechanisms will always be preceded by an announcement to the community.
  5. OTC Swaps: Allocate a portion of the minted INV tokens to facilitate efficient and direct OTC swaps to new and prospective INV holders.

On-Chain Actions

  • Mint 60,000 INV to the Inverse Finance DAO Treasury
  • Grant 15,000 INV allowance to the Policy Committee (bonding)
  • Grant 40,000 INV allowance to the xINV contract (dilution protection xINV rewards)
2 Likes
2

The minting of 60,000 INV tokens to the treasury will provide the necessary resources to support various critical operations of the DAO for the next 3-6 months as lending on FiRM scales up and deeper liquidity requirements arise. In line with our commitment to responsible token allocation, we will exercise prudence and strive to utilize these minted INV tokens sparingly.

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Would love to see a DBR mint added to these INV mints for the sole purpose of incentivizing LP, given the amount proposed for OTC deals and the value of this proposal presently ~$2.4MM I believe an allocation on the order of 1MM DBR could be a good start.

The logic here is that LPs are actually some of the people who would burn the most DBR, if we want to make it easier to LP, then incentivizing with DBR allows direct subsidization of LPs cost of capital.

Additionally this should generate minimal sell pressure.

cheers

2 Likes
4

20% inflation should be discussed more in detail. Adding simple headlines as to where the tokens will go is not sufficient and it will be even less sufficient going forward. I’d like to ask you gentlemen to provide more insights next time.

1 Like
5

agree this proposal could have sat on the forum in discussion a bit longer and be more specific. If there are any questions regarding the minted INV and what they are for please stop by the public treasury channel in discord.

1 Like