A Proposal to Change VITC's Governance Token to Create More Efficiency and Equality
At the time of writing this, all VITCGovernance decisions are made using the native token––VITC, this poses an issue for a few reasons, namely users cannot vote on governance proposals while their assets are staked.
I would like to propose a solution that increases efficiency and equality in the VITCGovernance system.
The Solution I Propose:
Mint the token GVITC.
Distribute the GVITC token to VITC holders via the VITCStake protocol.
Replace VITC in its role a governance token on the VITCGovernance platform.
Advantages To The Use of GVITC Over VITC:
People staking VITC in locked pools on the VITCStake protocol have a hard time participating in governance, GVITC will give users the ability to stake in locked pools while also participating in governance.
Assuming Proposal SqeDaOqd73_nqTXux4_e0 (VITCRewards) passes, this will pose an even bigger issue for user staking their assets.
Users who brought their VITC cross-chain must bring their VITC back to the Vite network to vote on proposals, this also poses a large inconvenience to users.
Users who have their VITC in LP positions helping strengthen and bolster VITC's liquidity provisions cannot vote without first withdrawing their VITC from the pool.
An infiniflationary (infinitely inflationary) token with a starting circulating supply of 1,000,000 tokens distributed to holders proportional to their VITC holdings.
GVITC will inflate through 2 VITC → GVITC pools:
14 day lockup time; inflates 2,000,000 annually
30 day lockup time; inflates 4,000,000 annually
What good do these tokenomics do?
Drives more demand for the VITC token, similar to how the veCRV system drives demand for CRV.
Whales who dump their stake in VITC, and hold on to GVITC, will continuously, over time lose power in governance.
People who find governance important will hold larger stakes in GVITC––they will also likely educate themselves on subjects more.
Will decrease the amount of VITC signed up for DAO rewards, meaning individual rewards are likely to go up.
10% - Distributed through the DAO rewards system.
10% - VITCSenate allocation, vested immediately.
25% - Distributed in a no-lockup VITCStake pool over the length of 3 months.
25% - Distributed in a 7 day lockup VITCStake pool over the length of 3 months.
30% - Distributed in a 30 day lockup VITCStake pool over the length of 3 months.