The following reflects the views of L2BEAT’s governance team, composed of @kaereste and @Sinkas. It’s based on their combined research, fact-checking, and ideation.
We voted FOR the proposal.
As we’ve seen from our experience in other ecosystems, incentives are generally a tricky subject. While they have proven effective in driving short-term growth, it’s challenging to say the same about the long-term stickiness of the increase in metrics.
Being newly deployed, Unichain can leverage the incentives to attract an initial crowd of LPs, users, and v4 builders as is the plan, but the goal should be to retain them for the long term without incentives. That is no simple task and will likely require much effort from the Uniswap Foundation on all aspects of maintaining a chain, from infrastructure and biz dev to marketing and user acquisition.
With that in mind, we would want the DAO notified regarding the progress of the incentives towards meeting the projected KPIs and specifically for a ‘flag to be raised’ if growth starts plateauing or, worse yet, declines. Since incentives are meant to be distributed in 2-week tranches, we expect to see the program iterate as time goes on to adjust to the response from the ecosystem.