Summary: This is a signaling proposal to gauge community sentiment on a new design for vxASTRO. After incorporating any relevant community feedback, this proposal will be taken to a vote. If the community signals interest/approval in that vote, the coding work required to deploy it will kick off. Once the code is complete and audited, a new proposal will be created seeking approval to deploy vxASTRO 2.0 and tributes on Neutron.
When Astroport governance voted to move the Hub to Neutron, a key part of the agreement included resurrecting vxASTRO and launching a generalized voting incentives protocol on the Astroport Hub on Neutron.
Today, we’d like to share our ideas on a new design for vxASTRO, so we can gather feedback and gauge community interest in kicking off coding work for the new design.
- Ability to lock xASTRO tokens for up to 2 years for non-transferable vxASTRO tokens
- No ability to unlock tokens until the lock expired
- Boosted voting power (a 2 year lock would earn 2.5x power)
- Boosted ASTRO emissions when you provide liquidity (2 year lock earns 2.5x boost)
Two core concerns over this approach have been raised by the community and other ve-derived tokens:
- Prolonged lockup of tokens
- Centralization of voting power granted to a few large holders
To address these concerns, we propose a more streamlined approach dubbed “vxASTRO 2.0.” This approach would remove boosted emissions and governance power, and replace them with “tributes” via a generalized voting incentives marketplace.
Designed for maximal flexibility, vxASTRO 2.0 would have the following features:
- ASTRO holders could stake ASTRO for xASTRO, then optionally lock that xASTRO for non-transferable vxASTRO
- vxASTRO holders alone would have the ability to vote on future $ASTRO emissions decisions in 2-week voting epochs
- xASTRO and vxASTRO holders would both have 1:1 voting power on general governance proposals (i.e. no boosted voting power for vxASTRO holders as originally planned per the Astroport litepaper)
- xASTRO lock-ups would be indefinite while allowing users to unlock their tokens at any time with a 2-week waiting/unlocking period
- LPs who hold vxASTRO would not receive boosted ASTRO emissions like they would have under the original proposed design
- A Curve-style voting incentives or “tributes” protocol (as mentioned in the Neutron Hub move proposal) would be launched with tributes going exclusively to vxASTRO holders (more on this below)
- Emissions voting would take place on Neutron (Astroport’s future home for governance), and vxASTRO holders would be able to vote on emissions on any chain where Astroport has an outpost
Under the vxASTRO 2.0 model, xASTRO lockers could elect to vote for the pools where they’re actively LPing. Or they could be enticed to vote for other pools via voting incentives, or what we’re calling tributes.
While the concept of voting incentives has negative connotations, they will inevitably exist in a permissionless system. If we accept that they exist, it makes sense for the protocol to internalize them as tributes or donations and distribute fees from them to stakers.
In effect, it creates a free market for governance incentives. vxASTRO holders can either vote on the pools they prefer, or vote on pools that have received tribute donations in order to capture those rewards.
To illustrate the tributes process, imagine a user who wants ASTRO rewards to go to a NTRN-OSMO pool. If they do not hold vxASTRO, they could encourage other lockers to vote for that pool by donating tokens (i.e. “paying tribute”) to anyone who DOES vote for the NTRN-OSMO pool. Tributes could be paid in any on-chain token (i.e. NTRN, OSMO, USDC, ASTRO, etc.). Then, any vxASTRO holders who votes for the NTRN-OMSO pool within that voting period would be able to claim a pro rata share of that pool’s tributes.
With this approach, vxASTRO 2.0 meets all its core objectives. Specifically, it eliminates long lockups and prevents centralization of emissions decisions (via boosted voting power) while also rewarding vxASTRO holders with the rollout of the tributes protocol.
vxASTRO 2.0 has the potential to:
- Reduce centralization around emissions decisions
- Eliminate excessive xASTRO lock-up periods
- Create a framework for an accompanying tributes protocol
- Ensure ANYONE can influence ASTRO emissions and liquidity provisioning decisions throughout the Cosmos with whatever token they’d like to use
Delphi Labs and Astroport contributors are excited to bring tributes to the protocol. Combined with the alternate vxASTRO design, it will bring flexibility to voting for emissions and add a new dimension to Astroport, which could initiate a new epoch in the AstroWars.
What do you think of this new design? Please share any improvements that you’d like to see!
Copyright and related rights waived via CC0.