DeFi protocols participating in the Targeted DeFi rewards program have requested a change to the program Terms and Conditions, on a pull request to ARC-48.
It is specific to the distribution of rewards, which the ARC stipulates must be 100% distributed to users, and the protocols would like to also use rewards for user engagement and protocol provision.
Proposed changes are from:
Rewards under this program will be distributed to projects within 4 weeks of the scheduled start date of the new governance period and the project(s) must distribute the totality of the amount received as incentives to their users, with at least 95% of rewards distributed by the end of the period and the remainder distributed in the following period. The methodology for payment must be made public and approved by the Algorand DeFi advisory committee prior to distribution.
To:
Rewards under this program will be distributed to projects within 4 weeks of the scheduled start date of the new governance period and the project(s). The usage of these rewards will be made public, and they will be entirely dedicated to protocol provision, user rewards, and user engagement. The use of rewards and methodology for payment must be made public and approved by the Algorand DeFi advisory committee prior to distribution.
In my opinion, the projects should define the activities that would fall into each of the categories - protocol provision, user rewards and user engagement - and the percentage of rewards that would be allocated to each.
Please add your comments either here or on github.