[Discussion] Claim straight to veCRV

Proposals
#1

Summary:

This proposal would create a “Claim veCRV” option on gauges; this would facilitate directly locking accrued CRV without taking custody of it (thereby avoiding a taxable event).

Abstract:

An option to claim directly to veCRV…

Motivation:

Many jurisdictions, including the US, treat receipt of CRV from staking pool tokens as a taxable event (income). By allowing users to directly lock, this is avoided, and the net profitability of staking is higher for all impacted LPs. This should lead to more locked up CRV, less sell pressure on CRV, and merriment and good times for all.

Specification:

Given many LPs participate in many pools, my intuition is that LPs would rotate whether they “claimed” or they “claimed to veCRV” depending on their boosting/liquidity preferences.

For:

It improves quality of life for many users and supports CRV token price. Gives less money to Uncle Sam and his friends.

Against:

Diverts engineering time for revenue accruing projects. Helps filthy blue passport holders.

14 Likes
#2

I think this is a good idea. And yes, I think you’re right that claiming CRV for US investors is a taxable event.

Also, I would think that this would consume less gas than claiming CRV and then locking that CRV into veCRV.

#3

It’s a very great idea and it makes a lot of sense. We should get a signal vote for that one.

5 Likes
#4

Also, this should:

  • increase participation in the Curve governance process,
  • generally strengthen the community, and
  • expand the set of people interested in Curve’s long term success.
1 Like
#5

Yes, a DRIP for Curve would be very welcome.

#6

Hey @raddy, @Jon, @ne1k0, can confirm this will be added in the near future.

4 Likes
#7

Completely coincidently I had the same idea today, and after some discussion on the Telegram I found this thread. Great to hear it’s being considered!

I believe the benefits for the user are that the boost would not be affected and they are earning a part of the admin fee immediately. The benefits for the project is that CRV is immediately locked which would incentivise participation in the DAO and related activities, along with reducing the circulating supply as CRV is not hitting the open market.

I have earned enough CRV to propose a vote. However if I claim my CRV I will lose my boost, which is limiting my participation in the DAO through being financially disincentivised because of the claim mechanism. If I could lock a portion into veCRV directly I would!

1 Like