[MPIP-12] Change in Pool Distribution Shares from 75% - 25% to 70% - 30%

Ecosystem Meta Pool
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Context of the Original Proposal:

The original proposal to modify the pool distribution, which suggested changing the automatic allocation from 75% and the voting share from 25% to a 70%/30% distribution, was presented by a member of the Meta Pool community but lacked some information. To provide more details and context to the community, the Meta Pool team took the initiative to create a new draft that thoroughly explains the reasons and benefits behind this change.

This text aims to detail how the adjustment would expand the involvement of locked mpDAO token holders, increasing their influence in the distribution of pool resources, and how this change complements the positive results achieved with previous adjustments.

For more information and to review the original proposal, please refer to mpIP-12.

What is this proposal about?

The pool distribution mechanism determines how NEAR tokens are allocated among validators. Currently, the allocation is split:

  • 75% is distributed automatically considering the performance of the validator.
  • 25% is distributed based on votes from holders of locked mpDAO tokens.

The proposal suggests changing this distribution to:

  • 70% performance allocation.
  • 30% distribution via voting by locked mpDAO token holders.

Why is this change being proposed?

  1. Background of Previous Change:
  • Over a year ago, the Meta Pool DAO reduced the automatic allocation from 85% to 75% and increased voters’ impact from 15% to 25%.
  • This shift gave locked token holders more influence and led to:
    • A positive impact on the price of mpDAO.
    • Increased interest and engagement.
  1. Current Situation:
  • Competition for pool resources among locked mpDAO holders has grown, making their votes more impactful.
  • Increasing their share would align with the success of the previous adjustment.

Proposed Adjustment:

  • Increase the share that mpDAO holders can vote by 5% (from 25% to 30%).
  • Reduce the performance distribution share by 5% (from 75% to 70%).

Benefits of the Proposed Change:

  • More Influence for Token Holders: This adjustment gives locked mpDAO holders greater control over how pool resources are distributed.
  • Additional Tokens Allocated by Votes:
    • With the current pool volume of ~23,000,000 NEAR, this percentage change would enable voters to determine the distribution of an additional ~1.1 million NEAR tokens among validators.
    • This could further boost engagement and interest in the ecosystem.

Conclusion:

The proposal builds on the positive results of the previous adjustment, aiming to further empower the community and support the value of mpDAO by giving locked token holders an even bigger say in resource distribution.

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