Allow Non-Compliant Claiming of Moonwell Rewards, with a 10% Treasury Fee

Proposals
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Summary:

A non-compliant claiming of rewards is one that has not met the 30-day voting requirement, in order to claim rewards.

This proposal suggests an update to Moonwell’s reward claiming system, allowing users to claim their rewards regardless of the 30-day voting window requirement.

Overview:

Currently, Moonwell users are required to participate in governance voting to claim their rewards for free, with a strict 30-day window for doing so. This model ensures that users stay engaged in governance but may be restrictive for those who wish to claim their rewards earlier without meeting the voting requirement.

Under this new proposal, users will be able to claim their rewards without being compliant with the 30-day voting window, but if they choose to do so, they will incur a 10% fee. The fee can be directed to the Moonwell treasury, helping to support the long-term sustainability and growth of the Moonwell platform.

This new feature adds flexibility for users while also ensuring that the treasury benefits from non-compliant claims, which could be reinvested into protocol improvements or used to fund community incentives.

Motivation:

The motivation behind this proposal is twofold:

  1. Flexibility for Users: Users may have legitimate or urgent reasons to want to access their rewards without being vote compliant, such as market conditions or personal liquidity needs. By offering an anytime-claim option, users are given more autonomy over their rewards.
  2. Benefit to Moonwell Treasury: The 10% fee provides a mechanism for the protocol to earn additional revenue, which can help fund operations, incentives, or future developments. This not only makes the system more user-friendly but also strengthens the Moonwell ecosystem economically.

Implementation:

  1. Early Claim Option: A modification to the claiming function/contract that allows users to claim their rewards regardless of voting compliance.
  2. Early Claim Fee: A 10% fee applied to early claiming. This fee will be automatically deducted from the user’s claimable rewards and transferred to the Moonwell treasury. Users should be notified of this in the UI before completing a non-compliant claim. If there are new proposals that could use voting, UI should suggest that users vote to avoid the 10% fee.

Conclusion:

By implementing this proposal, the Moonwell ecosystem provides greater flexibility to Moonwell users, promoting protocol sustainability through treasury funding, while encouraging ongoing governance participation.

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