I like these numbers as an end state, but I think we should be more aggressive in order to bring a lot of liquidity for tier 1 pools from the start:
- As liquidity mining transitions from V1 to V2, only tier 1 pools participate (4-6 weeks?)
- Once transition is over, another few weeks (2-4?) where all 145k BAL goes to tier 1 pools
- After that, tier 1 rewards immediately drop to 100k, 25k/pool and we introduce tiers 2 and 3
As we phase out the V1 liquidity mining program, I assume most LPs will reevaluate their positions and more strongly consider moving to other AMMs. The ETH/BTC pool is currently mining ~30k/week, and I’m afraid reducing that could drive LPs away. If we keep the mining APY high (potentially higher than today’s) for a few weeks, we can be more confident that the incentives exist for them to migrate and get the ball rolling in the liquidity-drives-volume-drives-liquidity game.
In addition to incentivizing V1 liquidity to migrate to V2 instead of moving to the competition, the 2-4 weeks of high allocation for the tier 1 pools would create some FOMO among farmers, further increasing liquidity.
And if we want to make some serious noise, we could even consider increasing the 145k issuance for those 2-4 weeks!
Minor plus: the strategy outlined above has the added benefit of buying us a few weeks before we need to discuss and decide all of these points.