Here’s the October’23 budget for the Stader ecosystem. This post shall give a summarized breakdown of estimated SD emissions for user rewards across supported chains and respective platforms.
The October’23 budget calls for 225,000 SD (actual 220,625 SD + 2% buffer).
A buffer of 4,375 SD is kept to account for unexpected price fluctuations over the month.
Please note- the SD token price used for the calculation is a 7-day vWAP ($0.6).
We request the community to share feedback, if any. You can access the data here
Happy to see that emissions for trivial chains have been removed.
However I’m still a bit concerned about the emissions and its possible relation with the slow dumping the token has been suffering lately.
I completely understand that incentives are totally necessary to kickstart some demand on LSTs, and even more around DeFi, but it’s also relevant to take into account that these incentives can backfire into a negative price action if there’s little buy pressure of the token.
And this can start a vicious circle: Incentives get dumped → token bleeds → token now has lower USD valuation → higher # of tokens needed to keep incentives stable → Higher # of tokens get dumped with next incentives distribution —> Loop
I agree to your PoV. We will definitely normalise the incentives in the next 2-3 months as some of the LPs stabilise on Eth and Polygon.