Synapse was launched as a brand-new protocol – with brand-new pools – and a brand-new token. Nothing about Nerve really needs to be seen as altered by anyone (regardless of construction of prior events) in order for Synapse to move forward and succeed, and the birth of Synapse does not in and of itself require the demise of Nerve.
The Nerve smart contracts are fully deployed. The bridge and AMM remain functional. If the community votes to do so, the emissions can be restarted, and through that mechanism liquidity can continue to be incentivized. In that sense, independent markets can be maintained for both $SYN and $NRV.
However, it does not make sense to turn those rewards back on quite yet – not while the Migration function on the Synapse page is still functional. Doing so with the tokens remaining directly interlinked (and arb-able) would prevent an environment where they can coexist as different protocols and independent markets.
To that end, we may consider the following proposal (voted on by holders of NRV and SYN as a collective, with a ratio of 1 vote per NRV and 1 vote per 2.5 SYN):
- A snapshot will be taken of all $NRV holders – including those providing Pancake liquidity, of course – as of a certain date. Immediately following the snapshot, the migrator will be terminated.
a. All such holders of $NRV will be airdropped $SYN at a 2.5:1 ratio. No $NRV will be burned under this mechanic.
b. So as not to provide those who have not yet migrated from $NRV to $SYN a windfall (or those who migrated and sold $SYN), and not to discriminate those who bought $SYN, a snapshot of all $SYN holders (included those providing Sushiswap/TraderJoe liquidity) on ETH/Polygon/AVAX chains will be taken. All such holders of $SYN will be airdropped $NRV at a 2.5:1 ratio (1 $NRV for 2.5 $SYN in the snapshots). No $SYN will be burned under this mechanic.
- Following the airdrop and termination of migration, $NRV emissions will resume on the prior schedule for LPs, xNRV stakers, and stablecoin liquidity providers.
- Unvested $NRV rewards (“unvNRV”) will vest – directly to the address that provided the liquidity or staked the xNRV – exactly 6 months following the block that created the emissions, and will be claimable on a weekly basis. If implementation of this proposal is delayed past the point where those first payouts would occur, any delayed payouts will come immediately upon smart contract deployment. There will be no additional conditions enacted, and the market will take the wheel from here for $NRV.
- At the time of the above snapshot, a snapshot will also be taken of each address’ unvNRV, and each such address will be allocated “unvested $SYN” (“unvSYN”) at a 2.5:1 ratio to unvNRV. The exact procedure of dealing with unvSYN is to be determined by the Synapse DAO.
- Following the above implementation, the Nerve DAO and Synapse DAO will be completely independent of one another. The proceeds from the Nerve treasury sale will be transferred to the Synapse DAO, but all historical Nerve protocol revenues and existing assets will remain with the Nerve DAO treasury to do with what it pleases.