rTrava / Native Rewards Burn Mechanism
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Trava could give users an option to choose whether they want their rewards in rTrava or in the native token of a lending pool. Burn mechanism could be implemented where native reward users would only receive certain amount (1/2) of their total rewards. For example if current rTrava rewards for USD pool are at rate o 9%, users who choose to get rewards only in USD would earn 4.5%. The rest of Trava would be burned, thus benefiting the users who long(er) term hold Trava. This way there would be less speculation since users who want to earn other tokens than Trava by lending, would not feel the pressure to sell immediately or when Trava is volatile.
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For a user benefit is simple, they get the tokens they want to earn in first place. In case of stable coins the no-volatility factor is a huge advantage.
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For a Trava Protocol benefit is in burning mechanism where the traditional value of TRAVA would be pushed higher the more users are using native rewards. Also less immediate sell speculation of rTrava would help protocol long-term.
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@rudy Yeah. That's quite a great idea for incentives program. Are there any project apply this idea?
