I think I’m inherently biased as a methodologist so a recommendation from me would be biased as well. I will vote for whatever proposal is put forward by the community.
I’m just trying to highlight some data points and my understanding of the market. At the current level, liquidity mining incentives have a limited impact on unit growth. No one can actually buy the product in size and exchange issuance doesn’t work for MVI due to the liquidity of the underlying. So we will continue to see retail demand and slow ramp in unit supply. This is basically what’s been happening.
As OA points out, we’ve seen no meaningful impact on units of MVI in the liquidity pool from the June’s increase in LM incentives. My take on this is that in the current market, 25% APY is not attractive to move the needle and, I believe, that there’s realistically little difference between like 18% APY and 35% APY for the MVI/ETH LP in terms of actually changing the behaviour of LPs.
So, really, it all comes down to what we are trying to do with the product. If we want to grow it, we should consider increasing incentives. If we are happy with where we are at the moment, because we are waiting for the market to turn for example, then we can reduce incentives which I don’t think will make much of a difference to LP behaviour.
The way the current proposal is written, it lacks purpose and a sense of direction for the product.