Yes, I probably should have been more clear about this. Our goals with the reduction are really two fold:
- To allocate a portion of the COMP emissions for usage in the protocol later (e.g. bug bounties, audits, payment to developers)
- To incentivize long-term holding of COMP
In order for the former to be viable, we need to add in vesting (see: Vesting for the Compound protocol). However, we believe that lower emissions now and then adding vesting is the correct ordering for the following reasons:
- Builds a larger reserve for bug bounties, contribution/security, incentivized voting participation, and to protocols that build on top of Compound
- Will lead to a lessened concentration of COMP on centralized exchanges and increased holding times, especially as farming adds perverse incentives for long-term holders