- Edited
Sounds really great, if Tokemak will be successful, then heavily investing in the project is by far the best decision as it really does wonders in terms of liquidity cost for protocols.
Things that I would add:
- You mentioned how much the toke rewards for the LP side of the tALCX reactor would decrease if the treasury ALCX was deployed there. This is true, however by deploying this amount of tokens there, it pushes the rewards up on the LD side as well, which means people will allocate their votes more to the tALCX reactor, taking the LP side of rewards back to previous levels (minus the total system-wide dilution of toke emissions that this action would cause). This makes this proposal even better IMO, as it has relatively minimal downside for the tALCX stakers (just the system-wide dilution of toke rewards, which I suppose would be no more than 1-2%).
- As for the other proposal, it might be prudent not to reduce the ALCX/ETH SLP pool any further, before other liquidity boosts activate (including mainly tokemak), to keep the ALCX/ETH liquidity at least level in the meantime and not have it drop. This assumes that the ALCX/ETH pool is deemed to have the optimal size right now. If that is not the case, and the thinking is that it makes little difference if the ALCX/ETH pool gets a bit smaller, then by all means, go for the full 7.5% toke bond allocation as soon as possible.
Alternatively, the DAI bonds could be partially reallocated to toke (?), as there is a lot in the transmuter as it is, which means whatever DAI is bonded is a relatively miniscule part of the total DAI supply in the transmuter+treasury. (Or the treasury wants DAI and does not want to take any out of the transmuter?)