Ruler Tokenomics Updates

Recently, the REP3 Emission Improvement proposal was passed by the community. Based on the specifications of the REP, here are the Ruler Tokenomics updates.

Note: the following changes will be implemented in the next 3 hours (it will be reflected on the Apps). Tokenomics is always subject to community governance changes.

Emission Change

In regards to RULER Protocol:

• 2500/week (50% increase) for the ETH-RULER SushiSwap LP farming pool.
• 1125/week (45% reduction) for both wBTC and wETH Lending LP farming pools.
• 112.5/week (45% reduction)for COVER Lending LP farming pool.
• 50/week (no change) for INV, vETH2 lending LP farming pools. No change.

In regards to Cover Protocol:

• 43.75/week (90% reduction) for wBTC and wETH CDS LP farming pools on Cover.
• 14.58/week (90% reduction) for COVER CDS LP farming pool on Cover.
• 370.59/week (no change) for the RULER-NOCLAIM LP farming pool on Cover.

New weekly emission is 5435.17/week, decreased from 7400.09/week. ~46% of which are used to incentivise the ETH-RULER pool.

The new emission does not include emission to REP-1 xRULER and other newly listed collaterals (max 50/week), which is included below.

Circulation Supply Change

As of right now, RULER’s circulating supply is ~21242.

By the end of March, we will have ~30,000 RULER in circulation.

By the end of May (3 months after launch), we will have ~85,000 RULER in circulation from Liquidity Mining and Airdrops. It is a ~50% reduction from the original tokenomics. And, ~46.2% of which of the new emission going to ETH-RULER pool and xRULER if this proposal passes.

The Impact

The original tokenomics at launch covered a total of 3 collateral types and the ETH-RULER pool rewards. This change will align the original tokenomics with the new collateral types being listed to incorporate the community led proposal for emission changes.

The new tokenomics will significantly reduce the current emissions that were scheduled to have 17.75% of the total supply released after the 3 month mark. Instead emissions will now be reduced to 12.8% at the 3 month mark, even including the addition of the xRULER changes being added this week.

Moving forward we will continue to work with the community on emission changes as the need arises. This change will have significant long-term effects if left as is, with the total supply at 3 years being cut to only 62.50% of the supply from 87.5%.