Motivations
This proposal is the most aggressive emissions cut to date: reducing emissions by > 2.6m a year.
With the successful launch and adoption of SynapseRFQ, SynapseX, and SynapseCCTP, it's time to optimize Synapse DAO emission spend to more capital-efficient levels. SynapseRFQ already makes up 80% of bridge volume, which should reduce reliance on traditional liquidity based bridging. These newer bridge modules offer cheaper quotes without requiring SYN emissions, allowing us to significantly reduce emissions while maintaining service quality.
Current monthly SYN emissions total 347,085 ($173,542.50 at $0.50/SYN) per month, across all chains.
Methods
Analysis of recent data shows:
- Multiple chains now see 80% of volume through CCTP/RFQ, reducing liquidity pool reliance
- ROI analysis shows significant overspending on emissions relative to fees generated
- Current TVL levels exceed requirements for efficient bridging operations
- Fee generation is concentrated on specific routes and chains
Suggestions
Proposed monthly emissions adjustments:
- Major Reductions:
- Arbitrum: 40,000 SYN (-69%)
- BSC: 20,000 SYN (-61%)
- Optimism: 8,000 SYN (-81%)
- Base: 8,000 SYN (-79%)
- Blast: 10,000 SYN (-70%)
- Moderate Reductions:
- Avalanche: 6,000 SYN (-50%)
- Canto: 0 SYN (-100%, replace with POL)
- Maintain Current:
- Polygon: 20,000 SYN (positive ROI)
- Metis: 15,000 SYN (subsidized)
Total New Monthly Emissions: 127,000 SYN ($63,500 at $0.50/SYN) Total Reduction: 66% in emissions, 66% in USD cost
Summary
This proposal reduces total emissions by 65% while maintaining sufficient liquidity for efficient bridging. The cuts are supported by:
- Increased adoption of RFQ/CCTP reducing reliance on liquidity pools
- Current excessive TVL relative to volume requirements
- ROI analysis showing significant potential for improved capital efficiency
- Maintained focus on key strategic chains and routes
The reduction allows for more efficient capital deployment while ensuring sufficient liquidity for all supported chains based on their current usage patterns and strategic importance.
