The incentives of DeFi and farming various tokens have been flawed and short minded. Currently minting tokens to pay people farming is a trend largely spreading through the DeFi space, sadly people do not understand that it is not sustainable.
Time to introduce the Deflationary Farming mechanics.
Lock the liquidity forever for anyone that provide liquidity, this is to solve Fly-by-night whales who just want to get yield on their money and do not care about the underlying project. If whales want a peice of it they can farm like the rest of us and locked liquidity and get returns, or buy from the open market, pumping the price and in returns the liquidity providers gets a % of the fees of those trades.
Introduce a transaction TAX on each transaction where tokens are burned, the supply is limited (lesser the supply the more demand in terms of price)
3.Every Trade that is done on LUA a % of the fees should be given to the liquidity providers as incentives for locking up their liquidity.
The solves alot of problems and also caters for the supply issue, since we will move from a inflation model to a defalation model.
The MAX supply for LUA ever should but cut down to 30,000 Tokens.
Thank you for taking the time to read the proposal.
Similar projects with a really great working model - https://medium.com/@0xdec4f/the-idea-project-and-vision-of-core-vault-52f5eddfbfb