[Circle of Tokens] Fundamental SOV value, Liquidity Mining and Inflation Rate

Yes, it’s a chicken and egg problem basically. Do you have a suggestion on how to make staking and LM worth it?

Liquid SOV rewards will not come without reducing rewards at the same time, this would be a bad shock with regard to liquid supply. Liquid SOV would be a bonus to make the reduced rewards not hurt too badly for pool liquidity. I will have a calculation for it available today or tomorrow and i’ll share it in the forum. I think from a supply side it could be possible to get it work without impacting short term liquid supply too much.

I’d add that we will not do it for all pools simultaneously. In our circle we favour the BNB/BTC pool for testing this out because according to

the cost of liquidity is high there while volume is low. Bringing 1 pool from 15k SOV vested per week to 5k liquid SOV per week does not harm overall liquid supply (450.000 LM SOV per month) too much.