It would just be an inflation cut. It's actually one of the pools that is doing well enough we can start over time phasing out incentives imo... I think we have to start thinking about ways to cut where we can as there's only a finite amount of whitepaper inflation. This pool is one of the best for earning trading fees, so it doesn't need as much incentive. The other pools that are getting no volume are getting no trading fees, but we have to look at bigger picture to determine the value, which is what I did in the bigger posts on this topic I've done. My personal opinion is that the pools getting little to no volume need to drop in size considerably and start being more volatile to drive up volume.
You are viewing a single comment's thread from:
Deliberately underproviding liquidity to drive up arbitrage is an interesting idea I've not come across before. On low fee hive that might work, on fee chains the fee would surely eat the tiny rewards.
Not too sure how this benefits the DAO unless it has LP in loads of small pools? And community would not benefit at all due to worse trading rates.
The SPS token has terrible volume across all our trading platforms. The only one doing any considerable volume (hive-engine) are not tracked. Ultimately I think it would be very beneficial for the DAO to open up a lot of smaller (think $10,000 each) pools bridged to multiple chains with new pairs. We need more volatility and volume to encourage arb trading. Exchanges aren't going to take us seriously without either a fat paycheck to buy their attention or enough volume to appeal to their nature. Exchanges make money on people trading a token... no volatility, no volume, no exchanges.