Schedule to reduce SUSHI/block to meet 250M max target

The community has voted to keep the maximum total supply under 250M. Here’s a plan to reduce SUSHI/block gradually to reach 250M in 3 years.

It’s one of many ways we could to this… but now at least we have a way :slight_smile:… what’s the verdict?

  • Looks good to me!
  • Nah, rubbish!

0 voters

3 Likes

Ok, agreed, its a balanced proposal to keep good incentive’s for the LPs during the next months until the project will be mature enough with well known awareness, high number of regular customers and a substantial trading volume & liquidity !

If nobody has other different suggestions, lets open the sushipowah official vote and close asap this important topic with very high impact not only for the token holders but also on crypto press/social media !

2 Likes

I think it looks good, i like the gradual reduction, and 3 years is a good baseline for increased rewards/incentives. I have been thinking of a similar supply distribution over 2-3 years.

2 Likes

basically the same concept as BTC mining. Decrease of rewards in hope that by the time the rewards decreased, the platform gained more popularity to support a higher price that yields the same rewards for LPs as before or better.
Combined with the lockup this will slowly drive the price up given we manage to innovate (BentoBox, farming with unused liquidity, etc.) and drive users to the platform.

1 Like

We will lose the LPs and with those the volume on our exchange. Why do you think this is a good idea?

1 Like

I agree that we cannot afford to lose LPs.
The max supply of 250 mil is already decided by the vote of the community and need to be implemented asap,

Considering the above, Imho this proposal is well balanced: reach the max cap decided, but still give the maximum reward to the LPs for the next year in order to have maximum incentive for them to stay.

It may be possible to have a better reduction schedule proposals from others, I will be very pleased to read them. Me, personally I dont have, but I will give my feedback if will be submitted.

It seems this is the only/best proposal to reach our 250 m hardcap. I believe we should soon put it up for a vote. I don’t know how hard it is to implement, but no matter if it is easy or hard to implement we can’t get the proces started soon enough.

1 Like

I also think the best solution would be to have a reduction of rewards occasionally. Similar to what Bitcoin has at the moment. This will be helpful from a marketing point of view as well.

So the way it would work would be to reduce emissions to 92.5% each 100.000 blocks, indefinitely. By doing so, from this point on, we will never mint more than 123.333.333 Sushi tokens.

100.000 blocks = 15 days and 12 hours (roughly)

Of course, we can adjust the below formula anyway, we see fit.

image

Where:

  • 100 represents the current block reward.
  • 100000 represents the interval of blocks when we want to reduce the emissions
  • 0.925 - is actually the 92.5% that we want to reduce emissions by.

Working example of the above, if it were to be implemented now:

  • in 15 days, emissions would be reduced to 92.5 sushi per block
  • in 30 days, emissions would be reduced to 85.5625 sushi per block
  • in 45 days, emissions would be reduced to 79.1453 sushi per block
  • in 60 days, emissions would be reduced to 73.2094 sushi per block
  • in 75 days, emissions would be reduced to 67.7187 sushi per block
  • in 90 days, emissions would be reduced to 73.2094 sushi per block
  • in 105 days, emissions would be reduced to 62.6398 sushi per block
  • in 120 days, emissions would be reduced to 57.9418 sushi per block
  • in 135 days, emissions would be reduced to 53.5961 sushi per block
  • in 150 days, emissions would be reduced to 49.5764 sushi per block
  • and so on.

Of course, if we adjust the sum in the limit formula, we could increase the number of blocks when emissions are reduced, but the percentage of reductions should be higher to compensate. But from my point of view, the tinier the reduction in emissions is, the less noticeable for LPs will be - and the more Sushi price will have time to adjust to the new emission rate.

2 Likes

Have you calculated how long it would take for your proposal for us to reach the 250 m hardcap? I am al in favor of your proposal, and personally i think our decision to lock at 250 million was to hastely approved, without a clear plan on how we would get there.
Borings proposal is a bit steeper, but that is because he wants of to have 2-3 years of leeway with providing ekstra sushi as incentives.
If we have a 250 m hardcap, and use very soft reductions, we will only have enough sushi for 1 year or so by my math.

1 Like

We will never hit the 250m hard cap. When calculating the limit of the sum in the above formula, it will show that we will never print more than 123.333.333 Sushi, ever in existence. It will get very close to it, but never touch it. This because the reduction of emissions is done often enough to never reach that number.

But to give you an estimate, this would be the total number of printed tokens, after the reduction is implemented, at some checkpoints in time:

  • 66,774,844.55761 Sushi total tokens printed, after 150 days
  • 97,396,609.12312 Sushi total tokens printed, after 300 days
  • 111,439,209.61612 Sushi total tokens printed, after 450 days
  • 117,878,898.2299 Sushi total tokens printed, after 600 days
  • 120,832,025.71245 Sushi total tokens printed, after 750 days
  • 122,186,277.82792 Sushi total tokens printed, after 900 days
  • 122,807,313.93391 Sushi total tokens printed, after 1050 days
  • 123,092,110.12551 Sushi total tokens printed, after 1200 days

I figured we already have about 124 million sushi in circulation, it would be fine if we add 123m more.

If you want, you can play around more with the formula on this site.

Another alternative, if the community agrees, we could reduce the emissions according to this formula

image

The above will reduce emissions to 86.25% every 31 days and it will never print more than 125m coins.

Also to take into consideration, when we talk about limits of sums, it will take a very long time to get near the total cap that we set as objective, but it will never reach it.

That’s how I started, but what you’ll find with that curve is that after 1 year, rewards are getting way too small. That’s why in my schedule we drop quicker in the beginning to have some ok rewards left at the end. The rest of my curve works exactly like that… I set it to reach 250m in 3 years, since that’s an eternity… there will be some more minted after that if you keep following the same formula, but not all that much…

3 Likes

the community did reach the 250 million cap, but I am not sure if everyone really thinks about the impact of the liquidity pool. unless we can increase the trading volume a lot, rewards reduction at this rate will kill sushi…

3 Likes

Proposal is live : https://snapshot.page/#/sushi/proposal/QmQ567b5Bwg6oUb7xqr1bpQ5JDUTHAYAozkUUdrsCfVs1V

1 Like

I have thought about this a bit more, and tried the Symlab TimHalpert linked to, but i cant work out how to see the numbers or a graph - just the mathematical solution.
I wanted to try to set the starting block rewards at for instance 50, and then use the limit of sum calculator to see how the emission schedule would look. I thought it might be better to start with a halving, and then use a low emission reduction going forward, so the future reduction in rewards would almost not be noted.
image

I am fine with BoringCrypto’s proposal, but i think there have been to little discussion about such an important change - we also haven’t discussed anything about if we want to keep locking rewards, when we start the inflation reduction (my initial thought is i think we should remove the locking aspect when we introduce the new rewards scheme)

If you drop instantly to 50 now, about 40% of TVL will probably go… that drop will look bad and as a result SUSHI price may drop further, which in turn will cause another TVL loss. Not sure if that’s what the community is waiting for :stuck_out_tongue:

2 Likes

Yeah, you are properly right. It was also just a suggestion for more discussion from my part.
But since it have been a week since your suggestion i guess it is fine to vote, and get the tokenomics done with, so you can focus on product and innovation.

Why max 250M ? i think max is 150M