Enhancing Tinyman Governance Model - LP edition
Abstract:
This proposal suggests two reforms to Tinyman’s Governance Model:
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Allowing Tiny-paired LPs a stake in Governance.
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Gate rewards claiming behind your participation in the monthly farming rewards cycle.
Objective:
Creating tiny-paired LP stability, and giving them a stake in Governance, as well as encouraging a more active Governance body by imposing a penalty for failing to vote for farming distribution cycles.
1.Allowing Tiny-paired LPs a stake in Governance.
Background:
In many ways Tinyman Governance has been successful, at the time of drafting (40.46%) of circulating tiny is locked in the Governance Vault. However this both has handicapped our tiny-paired LPs of liquidity and done little itself to stem the price declining.
Our two largest pairings are algo/tiny and talgo/tiny, with 19.3 million and 13.3 million tiny paired in those LPs, and despite offering pretty consistently higher farming returns tiny/usdc has lagged behind in importance to users, despite being a (somewhat) safer bet with the addition of a stablecoin in it’s pairing. The talgo pairing provides both additional funds for the platform via Tinyman’s share of staking rewards.
Tiny/usdc itself is one of the few ways we as users can buffer against negative price-action by whales dumping by providing somewhat of a buffer to absorb price shocks – and even when that is behind us, the first round of Governance unlocks for those that haven’t increased their tiny lock duration looms over the ecosystem.
We can encourage liquidity in talgo/tiny and usdc/tiny pairings by offering users the ability to lock their LPs in addition to their locked tiny for additional TINY power (via the portion of tiny locked at the time).
Example: lets say Tiny at a price of 0.10 you hold $5.00 worth of the tiny/usdc LP. 250 Tiny + 2.50 USDC, 250 Tiny worth of TINY power would be added to your current governance position while the entire LP is locked for the remainder of your commitment.
Any farms created for that LP you quality for would automatically have the tokens locked in governance added to the farm. This provides both long-term liquidity in the LP as well as giving you the ability to not have to worry every cycle about re-committing your LP tokens to any farms that become available.
2. Gate rewards claiming behind your participation in the monthly farming rewards cycle:
Directing rewards is the primary duty of Govs, and a stunning amount simply ignore this part of the platform. That has to change – we need active govs, not passive ones – apathy among our governance gets us nowhere.
In-order to encourage this gate the next month’s rewards claiming behind voting in the current months farming rewards cycle. No vote cast means your share of the rewards are allocated to those that do.
Tinyman should offer protocol-supportive options to default to if you have no real strong opinion for pool choices given the very extensive list of LP options on Tinyman, exampled: tiny-talgo, tiny-usdc, tiny-gobtc.
This is not to say your voting share will automatically go to them, but offer a small summery of the LPs and the impact they have on Tinyman for users who may be overwhelmed by the number of pool choices given.
The implantation would be gradual to give time for word to get out:
Every month those that don’t vote lose 20% of their rewards for the next month, adding another 20% every month to give people some leeway into the adjustment.
Example: say this measure is approved in December:
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Failure to vote in January’s Pool allocation results in a loss of 20% of February’s weekly Governance reward allocation.
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Failure to vote in February’s Pool allocation results in a loss of 40% of March’s weekly Governance rewards allocation.
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Failure to vote in March’s Pool allocation results in a loss of 60% of April’s weekly Governance rewards allocation.
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Failure to vote in April’s Pool allocation results in a loss of 80% of May’s weekly Governance rewards allocation.
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Failure to vote in May’s Pool allocation results in a loss of 100% of June’s weekly Governance rewards allocation with the same penalty applying every cycle moving forward.
Metrics for Success: An increase in Tiny locked in the governance vault as well as increased liquidity in the included LPs over time.
- Yea - Lets do it!
- No