Klima has been hit uncharacteristically hard this cycle relative to other DAOs and it is obvious to me that this reduction in APY is necessary.

APY reduction is good, I like that. Bond reduction is ok temporarily to allow for some price recovery, but if we start getting good premium it needs to be increased to match.

The focus on LP is what has caused so many problems. We spent all of those $1000+ klima bonds to buy BCT lp, which we then bought that same BCT back again at $50 klima. Moving forward we need to focus on treasury first, then liquidity.

I was saying months ago to split some of the BCT/USDC, Klima/BCT pools and put the BCT in the treasury, and use the USDC for DAO operations and burn the klima. My ideas were of course ignored for the longest time, now we have KIP for doing the BCT/USDC (finally). Probably too late now for the Klima/BCT pool because we already bonded most of the BCT out of it.

That would have save literally millions of dollars in klima emissions to get to where we are at now with the treasury and LP.

    Crypto_Coin_Guy I really think you're misunderstood for a few simple reasons: 1) pKlimas came before KIP 3, 2) to be subject to unfair trade practices litigation in the US you need US parties which last time I checked there was none.
    So I don't see the problem here.

      It was only a matter of time before this happened and honestly I wish it didn't take this long. It wasn't sustainable at ALL 1000% is still high if u ask me.

      Dunnsy we needed the lp to make it possible for trading or the whole idea fells but it was at the expense of token holders now that we have significant lp they can stop the self inflicted bleed

      APY means nothing if the market cap remains the same and everybody stakes for most of the time. It only means inflation and unmet gain expectations, bad all round. Rip the fucker off, make APY reasonable.

      This is brilliant. Much needed.

      For all those who are thinking about price action, APY.. etc, please focus on Market Cap (MC) that's what will grow your investment and MC is Supply x $price of KLIMA. With reduced APY, the Supply (# of circulating KLIMA) would increase at a much lower rate. If the treasury is able to accumulate high valued Carbon Tonnes, then it's growth would reflect in a higher MC, which means an increasing price.

      IMHO... for all investors, who are looking for their investment growth in KLIMA, the gamechanger is that "The treasury growth should be faster than the dilution due to KLIMA supply increase".

      Reducing the APY --> Lower emissions --> Slower increase of KLIMA supply
      High quality Carbon Tonnes --> Growth in treasury --> Growth in MC and price (hopefully, as it is still driven by market sentiment).

      To increase the treasury, the protocol by default creates a supply squeeze that causes the price to increase. This is evident in off-chain Carbon Credit prices. Not yet seen on-chain due to lack of demand for offsets on-chain. KLIMA Infinity would change that.

      Plus the team is always looking at buying carbon credits at bulk discount. Imagine buying an Nature based Carbon Tonne in bulk @ $8 instead of $10 and over 12 months it costs $15.

      Loving this proposal. Things are falling in place.

      CurlyHairedDude Exactly. Focus on bonding and utility and maybe the APY can be increased or decreased depending on the bonding capacity needed.

      Reduce APY now as there isn't sufficient carbon tonnes available to bond and not much utility either. In a few months when partnerships, utility, retirement are in place, we can even increase the APY to increase bonding.

      For me it's ok to change a plan if market conditions change. What is missing in my view is a new plan (that replaces the plan of KIP-3) instead of just another request for an APY reduction. Some of the questions we could answer in the new plan:

      • what are the new assumptions regarding APYs and total supply?
      • how will token holders benefit if market conditions change again for the better? Will we stay longer on a given APY level or is there a possibility increase APYs?
      • what are the assumptions we made for this plan?
      • ...

        Will the APY ever go up? I won't break even in even a year at 1000% APY. I'm not too okay with that. 2000% is fine I guess

          Rip the band-aid off, high APY means nothing and reducing it will help our metrics A LOT (I still think that 1000% is too high 😃 ).

          thereckoner Sir..... APY doesn't matter. If the APY goes down to 1000%, but the price goes to $500?

          Let's say the treasury is $250m and market cap is $750m (3X of treasury). If there are 10m KLIMAs, then the price is $75. If there are 5m KLIMAs, then the price is $150. APY by itself won't help.

          It's all about treasury growth vs KLIMA supply growth. If treasury growth outperforms emissions, then marketcap and price would go up.

          thereckoner let's not forget klima is a DAO so it's not for profit. should the market situation change, why not highering again? do a proposal and let's have a vote. the DAO respects always the views of the community, cause it's community owned.

          I'm here from day 1 and i will stay for a long time. In this hard time for Klima reducing APY is much needed of course if we want to survive!

          Things i don't like about all this APY saga and things is that is presenting now, like someone else, some strange third party made high APY in the first place 37,000 in the beginning. Reward rates high like someone else made them high and suddenly high APY is a MEME. And little by little everything starts to look like MEME, reward rate, runaway, bonding, etc, everything now needs to be changed... If high APY is a MEME, why made it so high in the first place. If APY was not so high in the beginning, lots of people will not invest, and we will have much calm and better state as we do have now.

          I just want to say, be fair to Your investors, don't make them look like they are crazy because protocol promises high rewards. People who hold until now deserve better than calling them apy chasers and moon boys, they invested, and they are in losses now.

          Don't change the narrative because we are in hard times!

          I don't talk for myself, i don't have a problem holding it, this is not my first rodeo, but be fair to Your fellow investors, we are all in this together!

          Let's go KLIMA!

          Crypto_Coin_Guy To add on to what has been chimed in, the reason why we have an open forum and vote like this is that we truly value and want to uphold the values of a DAO such that no rules could be changed in any part of the game. KIP-3 was titled as a framework to provide guidance so that we could align expectations based on how the space was developing at the time.

            grap

            I would agree with this. Would we get a new roadmap? The infographic with the tree growing from seed to maturity (which I can't find now!) stated that the size of the treasury is the key factor in when we reduce APY. What will it be going forward? I'd rather not be going to snapshot every time we want to adjust the APY

            I am a bonder, and as a bonder, I voted for rip band-aid off and reduce reward rate to 0.164%. Long-term is our play.

            Band aid off. Sustainability is crucial