Boosting Pool Incentives
This page explains how a user can boost their rewards by up-to 5x by holding a MAHA lock
In order to incentivize users to participate in governance, and additionally create stickiness for liquidity, we implement the following mechanism.
A user’s balance, counted in the gauge, gets boosted by users locking MAHA tokens in the NFT Locker, depending on their MAHAX voting power.
$b^*_{u}=min(0.2 *b_u+0.8S\frac{w_i}{W}, b_u)$
The value of
$wi$
is taken at the time the user performs any action (deposit, withdrawal, withdrawal of minted MAHAX tokens) and is applied until the next action this user performs.
If no liquidity stakers lock any MAHA (or simply don’t have any), the inflation will simply be distributed proportionally to the liquidity
$bu$
each one of them provided.
However, if a user locks enough MAHA, they are able to boost their MAHA rewards by a factor of 5 (reducing it slightly for all users who are not doing that).
Since voting power decreases with time, it is favorable for users to apply a boost and do no further actions until they lock more tokens. However, once the lock expires, everyone can “kick” the user by creating a checkpoint for that user and, essentially, resetting the user to no boost if they have no voting power at that point already.