TINY Rewards for users that vote

Proposal Discussion
1

I’d like to propose an enhancement to Tinyman’s TINY rewards allocation that could further incentivize users to hold Tiny Power and actively participate in the monthly pool votes. The idea is to make a portion of the TINY rewards for each pool accessible only to wallets that voted for that pool. Here’s how it might work:

Let’s say the ALGO/gALGO pool receives 2% of the total votes in a particular month. In this case, 10% (or another set percentage) of the TINY rewards allocated to this pool could be restricted to wallets that voted for it, distributed proportionally according to their voting power. This would provide additional incentives for users to vote and contribute to the governance of Tinyman’s ecosystem.

#Potential Benefits

  1. Increased User Engagement: Users would have a stronger reason to hold Tiny Power and actively participate in voting each month.
  2. Incentivizing Established Pools: Since larger pools already have a user base, this mechanism could encourage more votes to go toward established pools, if users knew there would be a portion they could access from voting rather than just providing liquidity to a pool.
  3. Reduced Reward Farming in Smaller Pools: By redirecting some attention from smaller pools with potentially less stable liquidity, this approach could promote a more balanced ecosystem across the Tinyman platform.

Of course, the exact percentage of rewards reserved for voters could be adjusted based on community feedback and economic modeling. Also, not sure if it would be another farming pool, but that would make it clear there are benefits to voting.

3 Likes