• Proposals
  • KIP-9: Protocol Maturation and APY Alignment

I would request that this KIP is broken into two separate KIPs...
or please add an option for "For: Grant Policy Minor APY Adjustments"

From my perspective, the policy team should be able to react to block time changes without community approval in order to assure that rewards are consistent with expectations. However, rate reduction may be subject to more debate within the community. If I'm not mistaken, this rate reduction would accellerated based on the emissions projections dashboard.

    I think it's super important to reduce the APY and stop the price falling as quickly. That was certainly the biggest deterrent for me joining this project. The price chart is the first thing you see. In any case, 8000% APY is still insanely high so i doubt it'd impact a new investors interest. Hopefully everyone on this project understands market cap / % ownership and realises that a high APY has been hurting us overall

    I think sustainability and growth of the protocol is key. I am equally open to giving the policy team the power to adjust the APY slightly when it deviates from our target upto a % after which A KIP vote is needed for any further adjustment. I however these concerns and will be happy for any one to help clarify.

    1. In such a bearish market will a reduction in APY no significantly hurt the protocol by reducing staked % and decreasing the number nee investors needed to grow the protocol?
    2. Will it not be better if this reduction was carried out in some future date when markets situations are better?
    3. What about doing this reduction in a number of times to get to the target 8,000 and not at once.
      Thanks

      Though I understand the motivation, but its going to severaly discourage folks who's already down....this may cause a massive sell off down to $10.00

      Skip 8000% and go straight to 1000%. The DeFi/DAO community at large is broadly recognizing that these high APYs are not only not sustainable but actually harm the DAO's objectives. Look no further than the trajectory of a project like Olympus or even a more recent project like Rome which has already acknowledged and positioned themselves to start drastically reducing their APY. Having a high APY is almost synonymous at this point with being an illegitimate project.

      In other words, APY is simply not a competitive dimension anymore. Every legitimate project is going to end up at 1000% because they have to. The argument that people will invest elsewhere kinda falls flat on its face when you consider this. Given the stability of the community and the price at the moment, I think it is in a great position to handle the turbulence of an APY drop to 1000%.

      I understand the reason as to why the APY needs to be reduced. However, I think at the moment it may be the wrong time to do it.

      Perhaps (as suggested previously in the comments here) the APY can be reduced in another month? I think two months would be pushing it. It just gives early investors to make a little more back and recoup their loses, and to also attract more investors.

      Side note: if the APY is dropped, I would suggest warning new comers to the project that the APY is set to decrease.

      Such a strong reduction really necessary already? Do values fit? 1.00312365*24/7.2 != 80, but maybe I'm dumb. In the general chat it was mentioned, that lower APY is also necessary for partnerships. Could you elaborate on this? Thx

      Ludobaegman I agree to this, in that going forward, splitting up separate proposals into two separate posts to get polled about should be considered, to ensure the health of confidence in the decision-making process of the protocol.

      That said, I support both proposals here.

      I honestly think that they APY should be slowly reduced and gradually…. I think the project is amazing and definitely has a big future ahead of itself.
      The most important think will be partnerships and building up the project and adding more assets to the treasury.
      My question is, will the price rise because or reduction of emissions?

      We have barely got over two reductions and corrections and yet another proposed reduction. Moreover, why publish the Cujo Expected Emissions dashboard if the intention is not to follow the KIP-03 framework or to do something completely out of time vis-a-vis the next Tier in May 2022. Furthermore, it is obvious the APY has to reduce, but it has to be orderly and don't be fooled that lowering APY will magically solve the price issue, point in fact, look at the OG OHM....

      100% on board with rate reductions. What bothers me is that it appears to come as a shock and need to do it NOW! Could some of the wise folks figure out some formula for reduction so everyone knows how it is intended to go? Sure going to 1000% is gonna suck, but if it keeps the project alive, let's do it!

      I'd also like to propose that instead of looking at rebase %, just vote on APY. If the community had done that, this entire proposal and issue would not have happened. As I read it, this is happening because we want to keep APY the same...so why aren't we just doing that?

      Anyone help me understand?

      If I wold be new investor I would probably just think how to make a quick buck with Klima and what are the risks of that. I think this is biggest crowd in crypto defi. Ppl want to make money fast.

      Things I would consider as a new investor would be what is the APY and what are probability to Klima to lose value per token. Since price is closing risk free value I would think high APY is not that necessary anymore to lure new ppl.

      Ppl who bought at top are gonna hurt because they can't reach the value they intial invested in dollars that fast.

      At this point it's protocols health and security is most important. Growing big treasure of carbon tons to grow runaway is very important Imo. Also having new bonding instruments opens new streams of revenue and builds connections to "real world". Apy and value of Klima token is still crazy good for traders and 9.9s if Apy gets to 8000% ish.

      I wold think high APY is just too good for whales to buy huge bags, double them and dumb rebasing rewards to markets hurting Klimas price. This in mind I think bonding is going to be more effective if/when price of Klima rises.

      In favor of both.

      I think even 8000% APY is too high, not sure how sustainable that is, but I understand that it would maybe result in losing some backers that took big losses and are still on board.

      This is a marathon, not a sprint, the goal is to be an amazing project down the road, not a get rich over night scheme.

      My full support to voting Yes for both.

      Car54 I agree. APY need to come down but not at this stage. Look at OHM price has only been going down hill after reduction in APY. I favor APY reduction but please let more investor come in with such low price and high APY.
      Please do not say, price does not matter, it does matter a lot, Not every investor in this project is here to give their money away for Carbon offset. Everything matters, price, framework, carbon offset and the whole crypto market.
      I think current price level is a great entry point for average investor when they see low price and high APY. At least let new entrant double their holding then reduce APY.
      I've been buying Klima from $3K to $135 and bringing my entry price down. It hurts to look at the portfolio now but I'm sure it will be in the green given some time but reduction in APY so early will hurt most of the people including myself and new entrants.
      I hope you cancel proposal to reduce APY.
      Cheers.

      Don't let short term sell pressure from short term traders inform your view on APY reduction. Lower APY builds the carbon backing faster (increasing backed value), reduces the discount required for profitable bonding (less dilution for stakers), and increases the amount of time we spend in each growth phase. Also, note with this reduction that your token doubling time only increases by about 2 weeks (time to double your amount of Klima).