[AIP-73] Optimizing AURA Emissions

Proposals
1

Summary

We propose an adjustment to the AURA emissions structure to optimize the effectiveness of voting incentives and improve protocol efficiency. This proposal shifts all AURA rewards to use the AIP-42 format instead of being minted with BAL emissions. This ensures that all AURA emissions directed to LPs contribute directly to voting incentives, maximizing their impact.

Rationale

AURA emissions play a critical role in incentivizing participation within the Aura ecosystem. We will optimize how emissions are allocated to ensure they maximize voting incentive capacity and efficiency.

Currently, AURA LP emissions per week are distributed approximately as follows:

  • ~114k AURA is allocated to LPs:
    • ~50k AURA to LPs, based on BAL received for LPs during the period.
    • ~64k AURA to LPs, for AIP-42 voting emissions from the Aura Treasury.

By shifting all LP emissions to the AIP-42 format, we can:

  • Ensure all AURA emissions going to LPs directly impact voting incentives, maximizing round capacity and efficiency.
  • Marginal gas savings due to the way rewards are queued and automated.
  • Maintain strong incentives for participation while optimizing emission structures for long-term sustainability.

Expected Impact

This adjustment ensures that AURA emissions remain effective while reducing inefficiencies:

  • Maximizing voting incentives efficiency and round capacity.
  • Reduce the DAOs gas bill

We believe this proposal will strengthen Aura’s incentive structure while preserving key aspects of the protocol. We welcome community feedback and discussion on this optimization.

Voting

This vote will be a single-choice vote. You may vote “For” or “Against” this proposal, or choose to abstain from the vote. By voting “For” this proposal, you are voting in favor of adjusting AURA’s emissions structure in accordance with the specification set out in this proposal.

2 Likes
2

This is an excellent proposal that will strengthen Aura’s incentive structure while preserving key aspects of the protocol–full support!

3

This proposal changes the emission to focus solely on protocols (and pools) that are incentivizing the voting market. I agree with that change, but I have a few questions:

@philjfry Did we engaged with the protocols that will “lose” this emission?
If not new pools enter the voting incentive market, does that means the current ones will receive the full amount (114k) and have a higher APY?
Or there is a plan to “save” part of these emissions?

1 Like
4

Sounds good overall. Do we know which pools will be most affected? And I second @jameskbh question; do we “save” some emissions? The voting rounds seem quite efficient already perhaps it is not needed to distribute all the precious $AURA :slight_smile:

5

We support reducing Aura emissions to mitigate the farm-and-dump dynamic users that are not Aura aligned have been doing. It has been affecting token value. Also, backing projects aligned with Aura’s intrinsic value and use case for incentivizing liquidity benefits token holders for the long term. kai community gladly supports this discussion and effort. Please let us know how we can help further.