Remove second stage of USDC incentive migration

This proposal would redirect the second stage of the USDC incentive migration process to the Community pool.


Proposal 648 called for incentives on the OSMO/USDC.axl pool to be moved to the newly IBC native OSMO/USDC pool in two stages.
The second stage occurs with the routine incentive proposal for November 2023.

This proposal asks that these incentives not be added to the OSMO/USDC pool but be redirected to the Community Pool.

The reasoning for this is that the OSMO/USDC Pool currently receives 3,213 OSMO per day, or 29% of all Incentive emissions, and yet has only attached $224k Liquidity despite high incentive rates.

The routine incentives proposal increases this to 5,700 OSMO per day, leading to a more inefficient use of Incentive spend.

This proposal would adjust the pool incentives as if the second migration had not been added by setting the OSMO/USDC incentives to 2,850 OSMO per day and redirecting the excess to the Community pool.

Target On-Chain date: 11th November 2023

Do we have other pools which might need a healthy boost what we can do with the excess funds?

If not, then I am ok with the temporary move to the CP.

We should wait on redirecting these incentives to the community pool.

The pool is relatively new and growing. Liquidity has increased by 50% since JohnnyWyle’s initial post.

We do - and the new pools have been getting ~100 OSMO each. If we keep this methodology up then some of this redirection will be deployed to other major routes as they are established, but we will also cut spending substantially.

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I see this as an argument for both sides though. The pool just grew 50% with existing incentives since they don’t change for another few days so the increase in incentives is an overspend.
It will likely grow more as people leave the USDC.axl pool as well when incentives end there.