It was a slower-than-usual week for governance, but there still are some events to be aware of:

Staking Module Overpayment

If you’re staking AAVE in the safety module, I recommend you follow the recent thread by Marc Zeller on Safety Module [SM] emissions. Aave currently emits 1100 AAVE per day to its SM. This proposal will reduce the token emissions by 30% to 770 AAVE per day. APR for stkAAVE holders will fall from 6.87% to 4.81%, while the APR for those in the Balancer pool will fall from 14.35% to 10.05%. These reductions are because new assets are coming to the SM, Aave is reducing slashing, and there is an agreement that Aave is overpaying their SM. 

This forum thread is important to follow if you’re in the SM. You will see your yield fall and must assess if backstopping risk to Aave is worth it. Additionally, this reduces AAVE emissions to the market, albeit by a small amount. Emission changes can change how token prices behave, although this reduction is so slight it may not matter. However, the post does seem to hint that further decreases in AAVE emissions may be forthcoming – although that is pure speculation.

Soulbound Treasures from TreasureDAO

The Treasure ecosystem began with Treasure NFTs during the heyday of the Loot rush. These NFTs took the form of simple white text on a black background, and the team hoped users would use the NFTs as building blocks for on-chain games. As Ethereum L1 was too expensive, Treasure DAO migrated much of their activity to Arbitrum. The migration was manual, as there was no permissionless NFT bridge. Unfortunately, some Treasure NFT holders missed the migration window and want to migrate their NFTs to Arbitrum to engage with the ecosystem. However, the Treasure DAO team feels that suddenly increasing the supply of Treasure NFTs through migration would dilute and punish those loyal to the game throughout the bear market. As such, they have proposed a clever plan to ensure that those who migrate must use their NFTs to unlock their value. 

The proposal is relatively simple: the Treasure DAO team will snapshot L1 Treasure NFT holders and issue their Arbitrum equivalent address an SBT representing their L1 NFT. Users will need to break Treasure NFTs while playing Bridgeworld to unlock their SBTs. The SBT mechanic is clever in encouraging players who want to migrate to stick around and play the game while also attempting to stop existing players from being diluted by sudden increase in supply. I also find this thread interesting as it highlights many challenges around sustainable economies in games and maintaining a happy, engaged community. If you’re interested in the intersection of gaming and crypto, definitely take a look. 

Honorable Mentions

• 1Inch instantiates a $500K grants program.
• Aave considers a $200K OTC trade for AURA and adding FXS to Aave V3.
• Arbitrum hatches a plan to reclaim unclaimed ARB airdrops and use it for future incentives or further airdrops.
• Hop Protocol debates selling 50% of their ARB for 686K USDC.
• The Uniswap Foundation asks Uniswap for a cool $62M for grants and operations.