I wanted to provide some thoughts here about LFG and token distribution that I have written in another thread.
LFG projects can benefit the DAO by market-buying JUP and voting for themselves. However the benefit is largely for that project, instead of the DAO. Projects can resell the JUP on the market if they don’t find it useful, and there is no difference for voting with a 1-day stake vs having locked your stake for 6 months. I also think getting tokens from projects for ASR is less useful than getting JUP for ASR. This is due to the fact that projects can potentially print their tokens at will. I understand different projects have different tokenomics, but I do think the attention on LFG tokens dilutes the DAO attention/value a bit.
Creating an incentive for LFG projects to lock JUP into the ASR fund would demonstrate a few things:
- Project is willing to pay for our attention directly by adding capital into ASR
- Project cannot inflate token value since it is not their project token
- Projects are using the currency of the DAO to communicate with the DAO
Let projects distribute their LFG tokens via LFG, and have projects contribute JUP to the DAO. Losing LFG projects could even get their locked JUP back. This also forces projects to decide if they’d rather pay the DAO for attention or buy their own votes.