With the launch of ALEX Bridge and introduction of sUSDT, it has become necessary that we revise our farming emissions schedule to incentivize Liquidity Providers for the STX/sUSDT and xUSD/sUSDT liquidity pools.
The net effect would be an increase in Y2 emissions from 54.3M to 66.9M ALEX. The proposal is open to community discussion.
Please see the below table for the proposed adjustments with a week for community discussions:
The value of pools with stable pools and without provincial risk can be increased, and in certain market conditions, liquidity will be higher on that side. ( ALEX- atALEX / xUSD-sUSDT)
Does it make sense to incentivize a large % of the $ALEX emissions to pools that aren’t even paired with the $ALEX token?
Hear me out:
Attracting large liquidity for these non $ALEX paired pools does not make sense for the protocol until POST-Nakamoto upgrade when transaction times are much faster (around 5 seconds)
With the current extremely slow transaction times of the stacks blockchain, daily transaction volumes are low because there is so much less opportunity for arbitrage, swing trading ect…
For this reason it is reasonable to assume these low trading volumes will continue until the planned Nakamoto upgrade (estimated late q3 to q4 of this year)
My proposal would only be for the time between now and the nakamoto upgrade
The Big Problem:
incentivizing a large portion of token emissions to these non-$ALEX pairs is effectively diluting current $ALEX investors.
Current low volumes do not generate enough fees to the treasury for it to make sense to incentivize so much liquidity
It makes more sense to give the majority of emissions to the early stakers and $ALEX LP holders in period between now and the Nakamoto upgrade.
My idea of a solution:
My proposal ultimately will help us early token holders accumulate a larger percentage of pie
(the fully diluted token supply)
With this proposal $ALEX token investors would also be rewarded with more of the non transferable governance token APOWER.
It is token holders that should receive most of the governance power.
Why would we want to award such a large amount governance to STX-BTC or STX-sUSDT Whales? for an example
I propose the following tokenomics changes effective until re-evaluated by governance post Nakamoto upgrade.
If my proposal gets implemented both atALEX and ALEX-STX LP holders will see their staking rewards increase by approximately 33%
The concern of over dilution is justified. The new proposal is fairly balanced between old and new.
Love this proposal but we should fix the total emissions rate. Emissions from the ALEX staking / STX-xBTC / STX-ALEX can be taken for a new pool.
Another good option is to ask for yield farming on a stableswap platform using their governance token like Bitflow Finance.
Correct me if I’m wrong, is this a dilution of the current ALEX holders? Quick read seems like it but just want to be sure.
Thanks!
Absolutely amazing we love this adjustment proposal. But supposed to reduce y2 per cycle In STX/sUSDT from 100000 to 90000 in order to provide the most competitive aggregated liquidity in connecting to liquidity pool with 10% out
of 100%. Meaning that, to guarantee seamless connectivity to multiple liquidity providers on STX/sUSDT with the use of Bridge absolutely free of charge. No set-up fee. No volume fee. I think by doing this will increase the incentivize liquidity providers especially STX/sUSDT
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You have my support for the proposal. I do believe this will ultimately benefit the future success of the dex as the current and future holders will greatly be rewarded with APOWER which later on can potential have increased use cases when the transaction speed increase comes into play.
The value of pools with stable pools and without provincial risk can be increased, and in certain market conditions, liquidity will be higher on that side. ( ALEX- atALEX / xUSD-sUSDT
Absolutely!!! I AGREE WITH YOU.
The total emissions should not be changed.
And the team needs to be clear on when new token economy will apply.
I understand what you mean.
But i think it’s better to maintain the total emissions as in OLD version. Otherwise the team may increase emissions with ease when they add new pools in farming.
Thank you very much for your efforts, Alex team. 
great project and we trust ALEX TEAM will work well to satisfy the stakers/holders
Looks like it’s goyto be a huge #ALEX
It’s not a good idea to incentivize a large %of Alex$ to a pool that is not even paired with Alex,but if this will be corrected,we are good to go.
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In a Y2 emission, increasing from 54.3-6M is good provided that it put a positive impact to Alex
I agree on this because it will make a total changes on the token.
Good idea 
But hopefully I’m still expecting faster transaction.
I agree with the new ALEX emissions but, I agree with Conk’s observations some that are seeing other ALEX holders are met at the middle of the road. Slightly increased emissions would be awesome on the ALEX.
I am excited excited what ALEX has done and it will only get better with the Nakamoto upgrade and the halving coming this time next year.
Yeah … what U are saying makes a lot of sense
