Discussion: RSR emissions approach for the second half of the token supply

Ideas & suggestions
41

I would like to contribute a potential way to effectively use the RSR from the Slower Wallet. One possibility is to directly incentivize the staking rewards on eUSD, for example, with 10-20% APY (or even higher?). In the long term, 1-2 billion RSR could be allocated for this purpose. This would lead to a significant increase in staking, resulting in eUSD being overcollateralized by 200-300% or even more.

Why do this?

By doing so, we could take 100% of the interest generated by the eUSD collateral and use it for incentive programs such as inside the Ugly Cash App or the Sentz App. A tiered system could be introduced where higher eUSD holdings in these FinTech apps would lead to a larger share of the generated yields.

This incentive program could be financed over a period of 6 to 12 months using RSR from the Slower Wallet for the staking pay outs of eUSD. This period could be used to establish an effective incentive program for Ugly Cash’s expansion in South America, with Ugly Cash receiving up to 100% of the generated interest if Sentz or other FinTech Apps cannot compete with minting and holding enuff eUSD.

Advantages:

  1. Incentives for New Customers:

  • FinTech companies could offer $50 or more to each new customer or for customer referrals → more eUSD holders and savers → increase of MC of eUSD.

  • With a market cap of $23 million and an APY of ~8%, approximately $1.8 million yield could be used for customer acquisition, advertising, and expansion.

  1. No Direct Inflation of RSR:

  • Using RSR from the Slower Wallet avoids direct inflation through market sales.

  • The eUSD-RSR staking community is unlikely to sell all their staking rewards, reducing selling pressure.

  1. Increased Overcollateralization:
  • A very high overcollateralization of eUSD could attract more minters and strengthen trust in the token’s stability.

Disadvantages:

  1. Reduced Buying Pressure for RSR:
  • The buying pressure for RSR might decrease due to the lack of auctions for eUSD yields.

→ However, this could be offset by the long-term growth of eUSD’s market capitalization.

@gabo @mattimost @nevin.freeman @Smeddy @Tom_hyUSD