[Discussion] Increase Boost beyond 2.5x for receiving vested CRV directly

Proposals
#1

Summary:

The inflation of CRV is quite high and therefore incentives need to be implemented to take part in governance and/or lock CRV for a longer time. This is especially important regarding the yearn vaults (yCRV and yETH) creating quite some sell pressure on the token itself, via farming CRV and selling it directly.
This proposal would add the option to receive vested (locked) CRV directly, which cannot be sold until the vesting period is over but may be used in governance.
The additional boost might also be dependent on the time of the vesting (as it is already now for vote-locking).
This might also favour smaller investors, who need are willing to commit to keeping CRV for a longer time, instead of simply farming it for profit.

Abstract:

Increase Boost beyond 2.5x for receiving vested CRV directly

Motivation:

The CRV inflation and sell-pressure (e.g. via yearn) are quite high, therefore incentives need to be implemented to take part in governance and/or lock CRV for a longer time. Incentivise smaller investors.

Specification:

E.g. an additional 1x Boost for every year of vesting up to a maximum of 4 years.

For:

Incentivising locking CRV for a longer time and taking part in the governance. Incentivise smaller investors.

Against:

Adding additional complexity to the existing boost system.

2 Likes
[Discussion] How to benefit from YFI?
#2

It’s a bit late for me to look into the feasibility of this, but I like the idea. I think vesting and escrow are great ways to align a token distribution and a community. I think SNX is a shining example. YFI initiatives should be encouraged, veCRV will benefit from yCRV in the long run, based on other proposals. But 4 years is a long time in this industry.

1 Like
#3

Yes 4 years would be rather long, but this would just be a suggestion. You could also change it to maybe 3 months, 6 months, 12 months and adjust the boost values :slight_smile:

#4

This is not a good idea and is very circular. There is no difference between locking veCRV and receiving veCRV. Anyone who wishes to ‘receive veCRV’ can simply lock up their farming rewards already.

Since the overall amount of veCRV has been steadily increasing, anyone who claims gets their boost reset and needs to lock more veCRV to maintain their boost anyway. So the incentive to lock and maintain a relatively high boost is already there.

Instead of overcomplicating the mechanism (which is already quite complex), you could create a similar incentive but just raising the max boost multiplier of 2.5x.

1 Like
#5

No it’s different in one important aspect. The distributed amount of CRV per day is fixed. So increasing the boost does not increase the overall inflation, it would shift the boost from people who do not want to commit to a vesting/time-lock and simply wish to sell the CRV directly, to the people who are willing to time-lock their CRV directly.

Basically if you want to sell the earned CRV directly, you are stuck with a 2.5x boost. But that boost would be worth even less, if there are people with a higher boost (willing to vote-lock their CRV directly).

Compared to the current system, it would remove some sell pressure from the CRV token.