Restructuring $REGEN Liquidity - 15% emissions proposal

To REGEN Community. A couple months back we had a serious discussion about a 33% emissions proposal that was written and pushed by Scott from Klima DAO with a couple of important reasons why the 33% was important. 1) Klima Foundation was going to support our efforts to get white-listed on Aerodrome and were going to throw significant incentives our way via their veAERO position. 2) This level of liquidity incentives appeared to be critical for our approval on Aerodrome.
Well, we didn’t get approved for Aerodrome and we’re moving on.

I’ve re-drafted this proposal given the above, and have shifted the emissions ask to 15%. After fairly extensive discussions, I believe this amount of resources will give us the leverage to significantly increase the amount of liquidity and open up numerous opportunities.

please see the new draft proposal below:
See a more nicely formatted version here.

Restructuring REGEN Token Liquidity: A Community-Driven Model for the Long Term

Proposal Date: June 17, 2025
Submitted by: Christian Shearer
Role: Administrator, REGEN Liquidity DAO


Summary

To ensure long-term resilience, appeal, and accessibility of the $REGEN token, this proposal introduces a decentralized liquidity framework led by the REGEN Liquidity DAO (LP DAO). By directing 15% of existing token emissions into the community governed Liquidity DAO, this initiative closes a long-standing structural gap: the lack of systematic secondary market support.

Our intent is not to promise financial gain or price movement, but to strengthen REGEN’s usability across web3, promote healthy market dynamics, and reduce dependency on individual actors within our community.

Rationale: The Missing Piece in REGEN Tokenomics

The $REGEN token ecosystem has matured around governance and validator staking but lacks an embedded mechanism for liquidity provisioning. This has led to:

  • Limited trading activity, poor volume, and limited total liquidity
  • Difficulty integrating with exchanges
  • Constrained utility
  • A road-block for medium and large-ticket investors

Without robust, sustainable liquidity, token utility and adoption remain throttled. This proposal introduces an important third pillar to our tokenomic system — market infrastructure — alongside governance and network security.


Proposal Overview

We propose:

  • The integration of the REGEN Liquidity DAO from an independent DAO to an arm of the community, and to fund the DAO for the specific purposes laid out in this proposal.

The LP DAO would henceforth:

  • receive 15% of all REGEN emissions, redirected from existing emissions (not added to)
  • Operate under a Wyoming unregistered nonprofit DAO - DUNA- framework
  • Be operated by a three-person counsel, initially made up of one representative from each of these three organizations: Regen Foundation, Regen Network Development, PBC, and Bridge.Eco)
  • Be accountable to REGEN stakeholders through transparent reporting and on-chain governance

This approach strengthens both decentralization and liquidity while maintaining emission integrity — no new tokens will be minted.


Design Philosophy

1. Maintain Emission Cap Integrity

The proposal builds on, but does not necessitate, the fixed cap, dynamic supply proposal currently under discussion. Rather than expanding supply, it reallocates 15% of current emissions to fund liquidity operations — preserving the cap while aligning emissions with ecosystem needs.

2. Reinforce Tokenomic Balance

The shift corrects the overreliance on voluntary liquidity provisioning by formalizing an incentive structure. The resulting distribution supports:

  • Validators (security)
  • Community Governance
  • Long-term Structural Liquidity (via LP DAO)

3. Regulatory and Operational Soundness

  • Jurisdictional clarity through Wyoming DAO structure
  • Multi-venue liquidity provisioning to avoid exchange dependency
  • Ongoing adaptability in response to shifting market conditions

Exchange and Platform Strategy

The Liquidity DAO will focus on:

  • Long-term liquidity sustainability - the DAO will deploy funds in a way that captures value for the community while enabling and increasing long-term liquidity.
  • Diversification: Engaging with multiple platforms to distribute liquidity risk and capture market opportunities
  • Security and Reputation: Collaborating with trusted, security-forward venues

These measures prepare REGEN for broad adoption without compromising its ethos of decentralization and regeneration.


Stakeholder Benefits

For Validators

  • Simplified user flows via improved liquidity
  • Preserved governance role through proportional LP DAO voting influence
  • Long-term health of the REGEN ecosystem supported by a balanced tokenomic strategy

For Liquidity DAO

  • Clear, liquidity-focused mandate from the Regen Community
  • Full transparency and compliance
  • Operational independence, AND accountability to token holders

Roadmap

Phase 1: Establishment (Q1–Q2 2025)
:white_check_mark: Legal and governance setup of LP DAO
:white_check_mark: Initial cross-chain liquidity operations ($250,000 across four blockchains)
:white_check_mark: Secured $REGEN listing approval on a centralized exchange

:right_arrow: Awaiting community governance proposal for emissions reallocation

Phase 2: Activation (Q3 2025)

  • Begin 15% emissions reallocation to LP DAO
  • Launch REGEN/USDC pools and incentives via Regenerative.fi
  • Develop supporting REGEN RELAY infrastructure
  • Finalize CEX integration specifications

Phase 3: Optimization (Q4 2025 onward)

  • Monitor and fine-tune operations
  • Explore additional exchange venues and ROI opportunities
  • Pursue liquidity efficiency improvements

Risk Mitigation

To future-proof the strategy:

  • Flexible response plans will adapt to changes in exchange rules or integration setbacks
  • Quarterly reviews will assess performance and guide updates
  • A continuous feedback loop will track the impact on $REGEN’s trading environment

Call to Action

We invite:

  • Community feedback and discussion on this tokenomic rebalancing
  • Formal governance consideration of this emission shift. We look to list this as a formal proposal once we feel there has been enough time for community discussion.

Ongoing collaboration around exchange listings and liquidity pool evolution

This is the actual technical proposal that would be voted on:

Technical Proposal

View the current draft of the technical proposal here

1 Like

This proposal is now up for a vote.
please go vote!
https://wallet.keplr.app/chains/regen/proposals/49

I was wondering if it would be possible to attach any relevant documents or information regarding the plan for deploying or utilizing the emissions, as well as the underlying assumptions, projections, and economic and financial models for this plan. I see the milestones here, but the plan for them will be nice.

Thank you for this great question. It speaks directly to the kind of transparency and shared responsibility we hope to foster through the Liquidity DAO.

:open_file_folder: On Documentation & Models

At this early stage, we do not have a fully formalized model or whitepaper-style document that lays out every deployment decision in advance — and that’s somewhat intentional. The nature of liquidity provisioning, especially in emerging ecosystems like ours, requires a high degree of adaptability. Instead of prescriptive modeling, our counsel is guided by:

  1. Mandate Responsiveness – We’re committed to deploying funds where they most efficiently support REGEN liquidity across trusted venues, particularly when:
  • REGEN token usage is encouraged and facilitated
  • LPs are rewarded sustainably
  • The DAO can capture value for long-term community use
  1. DAO-Owned Liquidity as the North Star – A major goal is to accrue and hold liquidity in perpetuity, enabling structural resilience. We view DAO-owned liquidity (DoL) as both a buffer and a public good: it ensures smoother trading experiences, builds confidence for users and partners, and decreases long-term dependence on mercenary capital.
  2. Tactical Near-Term Deployments – Two immediate channels we’re actively working with:
  • Spinach.fi – We’ve negotiated a ~$50/day REGEN reward pool to directly incentivize LPs. This is a simple, cost-effective way to bootstrap engagement and drive real usage.
  • Regenerative.fi – We’re planning to use REGEN as bribes, similar to the Aerodrome model. In that setup, REGEN tokens are used to influence reward weights on LP gauges. Based on Aerodrome’s dynamics, bribes often return more in rewards than they cost, and many LPs reinvest into the pool, reinforcing liquidity depth.
  1. Dynamic Allocation Framework – Rather than fixed splits or schedules, we plan to iterate across:
  • Venue (CEX vs DEX)
  • Type (bribes, flat rewards, joint incentives, DoL)
  • Chain (to ensure REGEN presence where it matters most)
  • Strategy (bootstrapping vs consolidation)

All DAO decisions will be tracked transparently, with quarterly reviews of strategy, effectiveness, and returns — whether financial or ecosystem-aligned. We aim to share learnings as we go, and we highly encourage welcome community ideas and feedback via our LiquidityDAO telegram channel.

Onward!