A path to sustainable rewards
Token Rewards in DAOs and DeFi are a powerful tool, they allow projects to influence behaviour in such a way to achieve a positive outcome for the protocol. In the last few months, we have been seeing a number of DeFi projects using rewards mainly to incentivize liquidity provisioning into AMMs pools, while that is useful the vast majority of the protocols out there have been doing so by only inflating the circulating supply of the token which often results in continuous sell pressure for the token being rewarded. Some outstanding example of these fact can be found in CRV and others. Rewards in order to last for a long time need to sustainable over time, with this goal in mind, in this proposal I want to sketch out a path for minimum viable rewards and sustainability.
In order to get to sustainability of rewards, those should be distributed in such a way to bring maximum value for the protocol itself and therefore token holders of the ecosystem. To make an example, right no