# Remove Classic Pools from VSGs **URL:** \ **Category:** Liquidity Incentives\ **Tags:** passed\ **Created:** [April 16, 2024, 12:21pm UTC](https://forum.osmosis.zone/t/remove-classic-pools-from-vsgs/2687 "2024-04-16T12:21:43Z")\ **Posts on this page:** 3\ **Page:** 1
**Author:** ![JohnnyWyles](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.osmosis.zone/johnnywyles/32/3114_2.png) [@JohnnyWyles](https://forum.osmosis.zone/u/JohnnyWyles)\ **Post date:** [April 16, 2024, 12:21pm UTC](https://forum.osmosis.zone/t/remove-classic-pools-from-vsgs/2687/1 "2024-04-16T12:21:43Z")
This proposal would create new Volume Splitting Groups (VSGs) that omit the remaining Classic pools from the currently used groupings, signaling the removal of Classic pools from the incentive system. ## Background The [Incentive Algorithm](https://community-staging.chaoslabs.xyz/osmosis/incentives-optimization) has been attempting to increase liquidity in Classic xyk pools by increasing incentives directed to each group at each monthly proposal. Incentives allocated to specific pools by the incentive algorithm are grouped within Volume Splitting Groups. As the Classic pools do far less volume per unit of liquidity than the Supercharged pools within the same VSG, the intended incentives are diverted to the Supercharged pool by the greater share of volume. This results in inefficient incentive spending on Classic pools, as only a fraction of the increase reaches the intended pool. These pools have also had consistent liquidity despite full-range Supercharged pools offering a similar experience with a higher return and no bonding period, therefore this liquidity is likely abandoned and a poor use of incentives. As these Classic pools have very low incentives compared to the return from swap fees and the Superfluid component, incentives should be able to be removed from these pools to increase the efficiency of the incentive algorithm calculations and further reducing total incentive emissions for Osmosis without heavily impacting the return of liquidity providers within these pools. ## Pools Removed in new VSGs [ETH/OSMO Pool 704](https://app.osmosis.zone/pool/704) Removes ~63 OSMO/day, 2.3% APR [ATOM/OSMO Pool 1](https://app.osmosis.zone/pool/1) Removes ~145 OSMO/day, 0.6% APR [TIA/OSMO Pool 1249](https://app.osmosis.zone/pool/1249) Removes ~2 OSMO/day, 2.1% APR [OSMO/DAI Pool 674](https://app.osmosis.zone/pool/674) Removes ~10 OSMO/day, 1.4% APR [Full model of impacted VSGs](https://docs.google.com/spreadsheets/d/18uxU716hKbbQKakl4CJm-qcnuA_v1CFRKUWB2RBH5CU) ## Mechanism This proposal creates four new VSGs, which will replace the current VSGs for the groups in the following proposal and directly adjust incentive distribution. Classic pools will no longer be allocated any incentives as part of the incentive algorithm. **Target Onchain Date** : 19th April 2024 ---
**Author:** ![LeonoorsCryptoman](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.osmosis.zone/leonoorscryptoman/32/208_2.png) [@LeonoorsCryptoman](https://forum.osmosis.zone/u/LeonoorsCryptoman)\ **Post date:** [April 17, 2024, 2:49pm UTC](https://forum.osmosis.zone/t/remove-classic-pools-from-vsgs/2687/2 "2024-04-17T14:49:27Z")
In none of the other VSGs we have Classic Pools available? Or will we see similar proposals for other VSGs in the future? And correct me if I am wrong, but you mean the following scenario is happening? - the algorith wants more liquidity in classic pools and therefore makes the incentives for a specific VSG higher - the proposal for the incentives goes on chain and passes - during the daily calculation for the distribution of the rewards the VSG kicks in, which distributes based on volume - for that reason the Supercharged pool gets a higher than intended incentives share due to more efficient usage of the liquidity Am I right on that? ---
**Author:** ![JohnnyWyles](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.osmosis.zone/johnnywyles/32/3114_2.png) [@JohnnyWyles](https://forum.osmosis.zone/u/JohnnyWyles)\ **Post date:** [April 17, 2024, 3:03pm UTC](https://forum.osmosis.zone/t/remove-classic-pools-from-vsgs/2687/3 "2024-04-17T15:03:40Z")
> [@LeonoorsCryptoman](#): > > In none of the other VSGs we have Classic Pools available? No, only these few are left, WBTC came in after the Supercharged pools were available, TIA only has one because of a previous fee token restriction. STABLE/STABLE and LSTs also use Stableswaps, but not the Classics. Only 7 VSGs in use right now! Your description of the scenario is accurate.