I do not support this. From your experiment we can see following:
Main reason is: You have moved corruption from the algorand foundation to specific projects.
First you have pumped few projects with the liquidity, and you say you give them 5 mil. algos to distribute according to their liquidity. The experiment in G7 showed: Projects tends to create unfair system for their distribution.
Let me explain with Pact.Fi example i had. First they contacted me that they will do distribution and that they will award projects which will “partner” with them and will do also the token distribution. I have read their proposal and proceed according what they wanted. My requirement at the start was that we distribute our token fairly… We are distributing fixed APY on hourly basis because we believe that it creates fair distribution of the token to the market. From their communication they said that they cannot do fixed apy distribution, so our DAO held a question to at least target our APY. I had also suggestion that they should announce rules prior the algorand governance starts because users owning our LP tokens cannot move their tokens after this point. Later they changed the rule that they will select only one token which will get boost by this program. We have deposited our tokens to them for distribution. Then they decided they do not want to support us because i started to complain that even after the launch of the algorand governance there are still no clear rules.
I am sorry, but this is not fair.
And even with this experiece i believe that pact distribution is one of the most clear one. Others does not even publish information on how they distribute the tokens from the foundation. You are basically creating corruption at the foundation with decision who gets the algos, and then in those companies. This is not good.
But let me show you alternative. What if you would support DeFi in the way that every account which holds any AMM LP token receives on hourly basis algo to their account with equasion (Algo distribution per period) * (Account LP algo value) / Sum(LP algo value)?
Or if you want to support not just AMMs: (Algo distribution per period) * (Locked usd value @ account) / Sum(Locked usd value) … You can calculate USD price of LP tokens, or USD value locked in smart contract and can sum this up…
This way you would support fairly DeFi. It can be automated, and whole crypto ecosystem will drive their funds to algorand defi.
— EDIT
I appologize guys, i meant this to be written for 5 Mil algo DeFi program which subsidize protocols, not for Liquidity incentive. I do support the liquidity program by the foundation, but i would like to see it fair, with public oversight.