| Category | Submitted by |
|---|---|
| Treasury | Planetarium Labs Pte. Ltd. |
Abstract
This proposal seeks to adjust the staking allocation of $BOOZE suggested in BGIP-5 from 2% to 3%. This decision follows discussions with the KAIA Foundation regarding Epoch #2 of the KAIA reward campaign. The adjustment aims to enhance incentives for providing liquidity to the KAIA-BOOZE liquidity pool (LP).
Motivation
The KAIA-BOOZE LP plays a critical role in ensuring liquidity and stability for $BOOZE token holders. Following discussions with the KAIA Foundation, it was determined that increasing staking rewards from 2% to 3% would provide a stronger incentive for liquidity providers, ultimately benefiting the ecosystem.
Specification
- Increase the staking allocation from 2% to 3%.
- This increase will be implemented in alignment with KAIA Foundation’s Epoch #2 KAIA reward campaign.
Rationale
- Enhanced Liquidity Incentives: By increasing staking rewards, we create a stronger incentive for liquidity providers to stake their assets in the KAIA-BOOZE LP pool, leading to improved liquidity depth and reduced price volatility.
- Alignment with KAIA Foundation Campaign: Coordinating with the KAIA Foundation’s reward campaign ensures maximum efficiency and engagement, attracting more participants to the liquidity pool.
- Increased KAIA Rewards for BOOZE Holders: By increasing staking rewards and improving the liquidity of the $BOOZE liquidity pool, more KAIA rewards can be allocated to the $BOOZE LP pool. This ensures that long-term $BOOZE holders can receive higher KAIA rewards over time, further strengthening the value proposition of holding and staking $BOOZE.
Steps to Implement
- The staking allocation adjustment will applied to Epoch #2 of the KAIA reward campaign, expected to kick off end of March 2025.
- Staking reward will be distributed proportionally to contributors of BOOZE-KAIA LP pool through Kaia Portal.
- Community members will be notified in advance through official BeerGang DAO channels.
Conclusion
Increasing the staking allocation from 2% to 3% aligns with the broader goal of strengthening the KAIA-BOOZE liquidity pool. This proposal ensures the long-term sustainability and growth of $BOOZE by providing better incentives for liquidity providers and aligning with the KAIA Foundation’s upcoming campaign.
Overall Cost
- 1% $BOOZE tokens from DAO treasury will be allocated additionally for staking rewards.