MarginX Liquidity Pool Rewards Adjustment – Aligning with Proposal #62 for Long-Term Growth

[orbitant]

ALO!

Following the approval of Proposal #62, which allocated 200,000 $PUNDIAI (20 million $FX) to enhance liquidity incentives on MarginX, we have made an important adjustment to the reward distribution strategy.

To ensure long-term sustainability, reward efficiency, and alignment with actual trading activity, we have adjusted the weekly reward emissions by 70% across all liquidity pools. This adjustment optimizes the incentive structure while maintaining attractive yields for liquidity providers.

Balance of Rewards After Pundi AI Rebranding & Token Swap

After the Pundi AI rebranding and token swap exercise, the remaining liquidity rewards balance available for deployment is:

• 190,000 $PUNDIAI (19 million $FX)

This balance will be strategically distributed across liquidity pools to ensure a sustainable and effective rewards program while maintaining deep liquidity and market stability.

Why the Adjustment?

The original proposal aimed to strengthen the ecosystem by:

1. Encouraging sustained liquidity to prevent withdrawals and maintain deep order books.

2. Boosting market awareness with the Pundi AI (Function X) rebranding and ecosystem expansion.

3. Offering competitive APR/APY to attract liquidity providers while ensuring a balanced incentive structure.

With these objectives in mind, the emission adjustment was introduced to:

1. Enhance Long-Term Liquidity Sustainability

• The original plan was designed to attract and retain liquidity, not just provide short-term incentives.

• By optimizing emissions, the rewards will last longer while keeping APR/APY competitive.

2. Align Reward Distribution with Trading Activity

• The previous emission structure distributed a higher rate of rewards than actual trading volume justified.

• By adjusting emissions, rewards are now better aligned with real user engagement and liquidity utilization.

3. Reduce Potential Token Dilution & Sell Pressure

• Unnecessary high emissions can lead to inflationary pressure, impacting token value.

• A lower but more effective reward rate supports price stability and sustainable growth.

4. Maintain Competitive Returns for Liquidity Providers

• Even after the adjustment, APRs remain high, making MarginX liquidity pools among the most attractive in DeFi.

• Liquidity providers still benefit from trading fees (0.3%) and optimized yield farming rewards.

Trading Volume Over the Last 30 Days

The following trading volumes were recorded across MarginX liquidity pools:

• PUNDIAI-PUNDIX: $686,374
• PUNDIAI-WETH: $1,094,006
• PUNDIAI-USDT: $5,028,089

The new reward structure ensures that incentives are now proportional to actual trading demand, rather than oversupplying emissions without corresponding volume.

No Lock-Up Period – Full Flexibility for Participants
There is no lock-up for rewards or deposits on MarginX. Participants are free to continue providing liquidity or withdraw at any time, according to their personal strategy. This ensures users can adapt based on market conditions while benefiting from trading fees and optimized emissions.


Ongoing Market Review

MarginX will continue to monitor market activity and adjust reward emissions accordingly based on market sentiment and trading activity. No feedback is required, as these adjustments will be made strategically to maintain a sustainable and efficient rewards program.

Final Thoughts

This adjustment directly supports the original objectives of Proposal #62, ensuring that MarginX remains a strong, liquid, and efficient DeFi trading platform. By taking a long-term approach, we ensure that liquidity rewards remain valuable, sustainable, and aligned with real trading activity while protecting the token’s economic health.

Thank you for your understanding and support in building a better Pundi AI ecosystem.

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Reference Posts:

Enhanced Incentives for Liquidity Providers on MarginX Liquidity Mining
https://forum.pundi.ai/t/enhanced-incentives-for-liquidity-providers-on-marginx-liquidity-mining/6081

Maximize Your Rewards: $3M USD (19 Million $FX) Deployed for $PUNDIAI Redenomination on MarginX
https://forum.pundi.ai/t/maximize-your-rewards-3m-usd-19-million-fx-deployed-for-pundiai-redenomination-on-marginx/6398

MarginX Liquidity Mining Pool
https://swap.marginx.io/#/farm

[orbitant]

MarginX Liquidity Pool APY/APR Comparison – Updated vs. Previous Rates

Following the 70% reduction in weekly reward emissions, we are providing a direct comparison of the new vs. previous APY/APR rates to highlight that the rewards remain significantly higher than before while ensuring long-term sustainability.

Updated APY/APR (Post-Adjustment)

PUNDIAI-USDT

• APR: 42.06%
• APY: 52.24%

PUNDIAI-WETH

• APR: 42.63%
• APY: 53.12%

PUNDIAI-PUNDIX

• APR: 35.07%
• APY: 41.98%

Previous APY/APR (Before Adjustment)
https://forum.pundi.ai/t/enhanced-incentives-for-liquidity-providers-on-marginx-liquidity-mining/6081

FX-USDT

• APR: 10.24%
• APY: 10.78%

FX-WETH

• APR: 15.35%
• APY: 16.59%

FX-PUNDIX

• APR: 26.13%
• APY: 29.85%

Key Takeaways – Rates Remain Higher Than Before

Higher APYs/APRs Across All Pools: Even after adjusting emissions, the current rates are significantly higher than the previous pools.

Sustainable Liquidity Incentives: This ensures that liquidity providers continue to receive strong rewards while protecting token value.

Deep Liquidity & Trading Activity: Encouraging healthy market participation and organic growth within the ecosystem.

Note: Rates are dynamically adjusted based on the total liquidity deposited in each pool. As more liquidity is added, APR/APY will adjust accordingly to ensure fair distribution of rewards.

With these updates, MarginX continues to prioritize both sustainability and competitive returns for liquidity providers.

[Tonkisa]

According to your execution, it’s understandable, but according to your promise (50% 3M) it’s disappointing for me. My investment was stratified according to your announcements and fully participated in the decline. Since the overall situation is currently unsatisfactory, this reduction is worsening.

[orbitant]

The total rewards to be distributed remain unchanged as originally announced - 50% of the remaining balance of 190,000 $PUNDIAI tokens. MarginX will not retain any of these tokens for its own use; all will be distributed as per the proposal.

There has been no reduction in the total allocation of $PUNDIAI tokens for rewards. The adjustment applies only to the emission rate, meaning that while the rewards remain the same, they will be distributed over a longer period to ensure sustainability and long-term participation in the ecosystem.

As rewards were initially high, but trading activity has not yet reached projected levels due to market conditions, this adjustment is designed to prolong the distribution of rewards and encourage more sustained participation. By optimizing the emission rate, we aim to align rewards with market demand, ensuring that liquidity incentives remain attractive over an extended period. This approach supports a more balanced and engaged ecosystem, benefiting both liquidity providers and the broader community of $PUNDIAI holders, including those who are not currently participating in the liquidity pool program.

Note: There is no lock-up period, so participants are free to adjust their own personal strategy accordingly, whether continuing to provide liquidity or withdrawing at any time.

[cop4200]

I agree, this is going to leave a bad taste for the long term investors. The price took a huge hit and at least the high rewards rate were giving investors a fighting chance by building large PundiAi bags, hoping to coup up with losses once price appreciates.

The 50% price drop meant losses could have been recovered in approximately 4 months at 150-200% APR, a pain one could live with. But now that timeline has been extended to over 2 years at these rates.

The team once again managed to deal a short straw for the limited investors.

[dnes-saak45]

Yesterday, there was 472 pundiai/week in pundiai-usdt farming, today it went down to 148, i don’t think you guys attracting liquidity provider instead ignoring them. The price is already down more than 50% after token reduction and now you are playing with liquidity provider. Yesterday, there were more than 400K liquidity, today its down to 80K. The reputation is already bad enough and you guys making it worst by changing reward pool whenever you want and according to your wish. It’s harsh but it is what it is. Fix it before it’s too late. @zaccheah @DavidK

[IvanFunctionX]

Patient is the key of success

[BRIACASH_COMMUNITY]

Rewards have been significantly reduced again. Where can I check the balance address or the contract where the coins for distribution are stored? Changes are being made without notifying the community—how is this possible?