One critical case appears to have been overlooked in the current proposal:
Participants who deposited into esINIT-USDC LP positions with a 1-year lock-up period via the VIP system.
Many of these users chose the long-term lock-up option based on the high APR offered at the time. However, under the new proposal, the APR is set to be significantly reduced — and these users have no means of responding to this change, as their positions are irrevocably locked for at least 26 weeks.
In summary:
- There exist LP positions locked through VIP with a minimum duration of 26 weeks.
- Users committed to long-term lock-up based on the previously promised APR and reward model.
- The APR has now been significantly reduced, yet these users have no flexibility to react, being bound to their lock-up terms.
- Thus, the reward structure has changed without recourse or optionality for these users.
Therefore, we believe it would be appropriate to consider additional measures for these users, such as:
- Calculating and issuing compensation for the APR delta during the lock-up period.
- Alternatively, allowing for partial early unlocking of their locked LP positions to restore a degree of optionality.
Addressing this will not only ensure fairness across participant groups, but also maintain long-term trust in the VIP and staking mechanisms.