unvSYN emission schedule

unclebill

When the proposal to split Nerve and Synapse was written it included the following stipulation:

At the time of the above snapshot, a snapshot will also be taken of each address’ unvNRV, and each such address will be allocated “unvested $SYN” (“unvSYN”) at a 2.5:1 ratio to unvNRV. The exact procedure of dealing with unvSYN is to be determined by the Synapse DAO.

Some important things to note:

There is roughly 70 million unvSYN pending to be released
Current weekly SYN emissions are at 630,000 SYN (SIP5 will reduce this number)
Current circulating SYN supply is at roughly 161 million SYN
Total protocol TVL is at roughly 675 million USD

I propose a linear vest of unvSYN with the following features

unvSYN will vest weekly at a rate of no more than 30% of total weekly SYN emissions
weekly unvSYN emissions can be reduced OR paused if total protocol TVL value dips below the 500 million USD threshold (lets discuss this further)
weekly unvSYN emissions can be increased if protocol TVL is 'healthy' (subject to a community vote) (what does healthy mean?)

Under these conditions 70% of total weekly SYN emissions would go to current LPs and the SYN treasury while 30% of total weekly SYN emissions would go to early NRV LPs.

This conservative linear vest schedule will protect protocol TVL, which is extremely important at such an early stage of the products lifecycle. It also gives the protocol and community the flexibility to change things in the future, if needed.

tronix

Nice to see the discussion moving forward a bit.

I view this topic much more from a credibility, integrity and community trust perspective rather than what the current metrics like price, emissions, TVL are. Early NRV_LPs were promised those rewards. The old NRV-pools displayed the fully vested rewards (incl the 2/3) to attract people who want to take some risk to earn those rewards.

I understand that nobody wants to see SYN price dropping because of the vesting. A long vesting period should solve this. I would suggest:

Full distribution over 24 months linear vesting starting from 01.01.2022
Ability to claim early with high penalty like 95% from start decreasing over the lockup period
Penalties go the synapse treasury

To me this sounds fair, easy to implement and has the chance to close this topic once and forever.

brucey

I don't have any unvSYN however care about the long-term health of the protocol.

Approximately 43% of unvSYN is outstanding as I understand it. That's a big amount. Maintaining credibility and sticking to our word's important, but sustaining price and TVL is too.

With @tronix's proposed 2 year linear vesting this would result in 673077 SYN/week, which is slightly higher than current emissions (that we're working on reducing). I think shortening the vesting period inflates the circulating supply too much.

However by imposing the proposed penalty for claiming early (perhaps 50% penalty for an early claim, distributed 50% to single-sided stakers, 50% to treasury for TBD use) would dampen the impact of instant liquidity and reward long-term behaviour.

LandFish

Watching the discussions for the past few weeks it seems this is a difficult thing to solve. I would put forward this proposal in trying to reach a middle ground.

First and foremost I think a gesture of good will would go an extremely long way in bringing disenfranchised people into the fold, and a stronger community is one that will have more longevity and sticking power. We can point to this and say we got you we are doing our best, while trying to be focused on the main goal.

My idea for this is to allow 1/3 unvSYN to begin a vesting schedule. (Input from team if this is reasonable). Here are some numbers regarding what this will look like.

Uncle Bill said 70mil so this is based on that.

24 mil SYN starting at contract deployment.

Over 6 months ———> 922k per week

Over 1 year. ———> 461.5k per week

Over 2 years ———> 230k per week

The other 54m ideally should be put to work to offset any future costs of vesting it (or put it towards the current offset). We have SSS, and DPOS in the future. The intention here is to ideally vest everything at some point. Though I would say everything is on the table.

To be decided here is,

46 mil SYN

Staking ASAP.

Wait for DPOS.

Leave it in limbo The carrot is good for now.

This is a rough draft so please treat it as such. The second half is my biggest question.

Other considerations is allowing people to vest early with huge haircuts.

lapisdei

I propose a 4 year linear vest of all unvested SYN, backdated to start at the anniversary of the time the first 2/3rd NRV would have vested. At any block users can claim their SYN as it is released. Users can also choose to vest their entire balance immediately at any time, paying a 50% penalty. This penalty is then paid to single SYN stakers who have locked their SYN for 3 months. Locking SYN makes you eligible to receive penalty fees. Locked SYN is able to be unlocked after 3 months but still is eligible to receive the 50% penalty without needing to be relocked.

70 million unvSYN
₁₇.5M SYN released per year
_48K SYN released per day

This proposal rewards those who believe in the protocol by punishing those who want to pay the penalty and cash out.

Feedback?