Reduce APR of Multiplier Points

Proposals
63

maybe we only need buy back burn to pump the gmx price,the problem is not the mp

64

the gmx have 30% fee,maybe we can use 5%~10% to buy back burn, the 20% ~25% like before.
by the way, the gov only have 10% fee, 5% is not a little percent.

1 Like
65

Data says we already in about stable state of MP stake/burn ratio. From feb1 (after 200% cap implementation) on average more MP was burned daily than staked. Global MP boost rose slightly only because a lot of GMX/esGMX was unstaked alongside too. But these GMX will be staked again some day and MP boost will fall in process. My assumption is if we will just lower MP APR to 50% and don’t change anything else, global MP boost will find stable state ~100%. Just in point begged by many and no further dilution to base APR in long term.

Some stats from feb1 after 200% cap was implemented already:
Staked GMX/esGMX dropped from 8.04M to 7.34M (-8.7%);
Staked MP dropped from 9.67M to 9.30M (-3.7%);
Global MP boost rose from 120.2% to 126.7%;
If all GMX/esGMX were staked back today, global MP boost will drop to 115,7%

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2 Likes
66

hi @mhuthma, thank you for sharing your thoughts on this, my thinking was that since the MP emissions vote may change dynamics for new users, it may be appropriate to vote on it together with a paired MP cap

i apologize if it came across as undermining the governance process

agree with this as well

there are a lot of different suggestions each with their pros and cons Towards Addressing the Question of MPs - Consolidated Suggestions

i think a sentiment vote could be done to decide on which solutions are preferred

while i have my own thoughts on things, at the end of the day, it is our desire to work on what the community as an aggregate prefers, if the community decides that changing the tokenomics is important then we will look into prioritizing that with other tasks

1 Like
67

X most would agree with your proposal.

68

Thank you @xdev_10 , i appreciate hearing your views on the matter.

A few ideas floated in the telegram as a possible way to alay people’s concerns:

  • Open up a gmx coin GM pool (gmx-usdc) as a means of diverting some staked gmx as well as aggregating more fees. Basically an alternate means of reducing mp apr by diverting gmx from being staked normally.

  • Gradually and slowly reduce the power of MPs. If 1 MP is 100% effective now, adjust it to 99%, then 98% a month later, and so on. For example, if it takes 2 MPs to add 1% to someone’s boost, maybe make it take 2.1 MPs, then 2.2, and so on.

One of the chief concerns is that a sudden, single elimination of MPs will trigger a mass sell off. Right now, MPs serve as a “softlock” feature that had prevented the 95% value drops during bear market conditions that had befallen other prominent tokens. Finding a solution that doesnt infringe on this amazing feature would be ideal.

Also I invite you to take a glance at this other thread on “growing the pie”: Consolidated list of ideas on GMX growth

2 Likes
69

What i posted on another topic for the same subject (why 2 topics ? ) :

My solution would be to remove MPs emission and decrease MPs in 1 year time. So your MPs will farm less and less % throughout the year, until 0.
Avoids mass dumping at once, and people who farmed MPs can still use them for a while.
A slow death.

Eldian’s issue. As much as i like Eren’s plan, we might go for a Zeke Yeager here.