ARC-104: Adjust ASTRO Emissions on Injective

Proposals ARC (Astroport Request for Comments)
1

Summary

This proposal advocates for reducing the ASTRO emissions on Injective for two reasons:

  • The average Injective block time has decreased 26% from 1.088 seconds per block to 0.8 seconds
  • ARC-81 mentions that ASTRO emissions should decrease by 75% once PCL lands on a new Astroport deployment

Abstract

Recently, there have been two important developments on Injective:

  • Astroport governance has deployed the PCL pool type
  • The average Injective block time decreased 26% from 1.088 seconds to only 0.8 seconds

Because of these updates, we’d like to propose that Astroport governance changes the amount of ASTRO emitted per Injective block as follows:

  • Reduce ASTRO emissions by 26% to reflect the changes in Injective block times (a 0.288 second/block difference)
  • Reduce emissions by a further 75% as already established by ARC-81

Concretely, incentives on Injective would go from 0.4225 to 0.0781625 ASTRO per block, an 81.5% reduction (calculated by multiplying the 26% and 75% figures mentioned above). Fees and liquidity will be impacted by this change and we propose that the Assembly reassess the impact after PCL is the dominant pool type on the Injective Astroport deployment.

Executable Message

The executable message for this proposal looks as follows:

[
  {
    "wasm": {
      "execute": {
        "contract_addr": "inj1z354nkau8f0dukgwctq9mladvdwu6zcj8k4928",
        "msg": "eyJzZXRfdG9rZW5zX3Blcl9ibG9jayI6eyJhbW91bnQiOiI3ODE2MiJ9fQ==",
        "funds": []
      }
    }
  }
]

Copyright

Copyright and related rights waived via CC0.

2 Likes
2

I agree with the 26% decrease, this makes sense.

The other 75% does not make sense nor respect the essence of ARC-81 as no PCL pools have been implemented. The team right now is just improvising because that’s the easy way to decrease APRs instead of working on increasing liquidity.

I have a big % of the liquidity in the LP pools on Injective and with such a big decrease I will move everything elsewhere as it will be, among others, more profitable to liquid stake my INJ than to let them in the pools.

Same for me ETH and the rest, Astro will be the less profitable option. Liquidity will decrease, slippage will increase and then no one will use the Astroport satellite.

Sad but true.

1 Like