Liquid wrappers take BAL out of circulation ad vitam æternam; multiple liquid wrappers do this both at an accelerated pace and in a more decentralized fashion. They also help create perma exit liquidity for BAL holders.
For liquid wrappers to capture BAL in circulation, they need to provide strong incentives to offset peg, liquidity and counterparty risks, which they do in forms of directing BAL (and their native token) emissions to their LPs.
Capping their gauges not only harms the existing flywheel but punishes any future entrant in competing with existing versions. See CVX ecosystem and the rapid pace of innovation that each new entrant is bringing to their system.
BAL trading highly correlated to ETH (0.7-0.8 - 30D) and holding its ground vs. the ETH pair is indicative that the current system is working pretty well. Excess BAL is largely flowing back and getting locked by existing veBAL participants and whales. LPs and projects can still generate 2x or more via bribes, largely due to the existing veBAL war participants.
And to be frank, I think it is ultimately better for liquid wrappers and whales with long investment horizons absorb BAL supply (as is) in the current bear we’re in than risk forwarding emissions to projects/players that rely on emissions to cover their burn rate or are in it just to dump BAL.
Vote-escrowed tokenomics is there to create a battle to control the money printing machine for years to come, play the game with your dollars and not your mouth.
Disclaimer: I hold veBAL, Aura, AuraBAL and TetuBAL.