So if I understand this correctly - holding xPolycub allows you to basically direct the inflation to the pool(s) of your choice, just like Curve, but with the monthly halvings it seems like soon there won't really be much of any inflation to direct. Am I missing something here?
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Correct
Inflation halvens monthly, so we still have a ways to go. As inflation reaches the end of the curve, it will become super low relative to how many tokens are being distributed - not necessarily the value of those tokens.
The argument you have here is the counter-argument to the success of the platform long-term. We’ve designed mechanics to accrue value in various forms and that value will begin buying POLYCUB and distributing it to the LP incentives pool once that curve starts to flatten.
All of these contribute to the pool of capital that is buying POLYCUB and distributing as LP Incentives in the future. The current value prop of governance is to control inflation. The future value prop of governance is to control protocol cash flow
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And will the governance votes influence the way PoL distributes rewards, for example, in the future, when inflation will be close to zero?
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Yes. Just think of the yield pool as a rewards pool of money.
Right now, that pool is made up entirely of inflation.
In the future, that pool will be made up entirely of revenue accrual by the protocol.
The pool is directed by governance in both scenarios
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Nice! It makes sense and gives lots of control over rewards flow to the xPOLYCUB stakeholders.
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