Gate Square “Creator Certification Incentive Program” — Recruiting Outstanding Creators!
Join now, share quality content, and compete for over $10,000 in monthly rewards.
How to Apply:
1️⃣ Open the App → Tap [Square] at the bottom → Click your [avatar] in the top right.
2️⃣ Tap [Get Certified], submit your application, and wait for approval.
Apply Now: https://www.gate.com/questionnaire/7159
Token rewards, exclusive Gate merch, and traffic exposure await you!
Details: https://www.gate.com/announcements/article/47889
The community has recently提出了 many suggestions for governance proposals, and I would like to share some thoughts.
Someone asked why not directly remove the maximum supply limit, set it equal to the current total supply, and then allocate a portion of the weekly repurchased tokens to liquidity providers?
The key issue lies in **consistency**. If we simply shut down the current mechanism that distributes approximately 22.25k tokens daily to LPs and other products, and completely switch to relying on weekly repurchases to support LP returns, a problematic situation will arise—during weeks with lower repurchase volumes, it might not be enough to provide sufficient returns to LPs.
In this case, LPs' confidence in the platform as a stable income source would collapse. They might think, "This return is too unstable; I should go elsewhere." This would create a vicious cycle, with LPs continuously leaving and the platform becoming increasingly inactive.
Based on the performance over the past two years, we do not expect the token price to surge significantly due to inflation. But the key is **having a stable daily token distribution to all LPs**, which can reassure liquidity providers and encourage long-term investment here.
Returning to the logic of that proposal: as long as our daily repurchase volume remains stable at around 22.25k or less (thus controlling inflation rate), the buffer space between the maximum supply and total supply will be sufficient. This buffer acts like an elastic space, giving the protocol some flexibility to meet LP return demands.
Without this buffer, we lose flexibility.