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OGV Inflation Halving: What You Should Know

October 5, 2023
OGV Halving

OGV Inflation Schedule

Origin DeFi Governance (OGV) is the backbone of our yield generation ecosystem, serving as both a value-accrual and governance token for Origin’s OTokens. We’ve been thrilled by the community’s support for OGV, with over 80% of all tokens currently staked.

In accordance with the OGV inflation schedule, Origin DeFi Governance’s monthly emissions were halved on October 4th, 2023, from 33.6M to 16.8M – a 50% reduction that translates to far less supply dilution. Let’s take a look at OGV’s inflation schedule, why it’s important, and how it impacts Origin DeFi’s ecosystem. 

Paving the Way to More Sustainable Yield

OGV’s inflation mechanism was implemented to bootstrap protocol growth, encouraging users to stake OGV and reduce circulating supply via staking rewards from OGV emissions and buy backs.

These reductions are stepping stones to more sustainable yield for stakers – as OUSD and OETH gain further adoption, token emissions are replaced by rewards from protocol fees. As a result, the OGV community can look forward to a far more sustainable rewards pool, coupled with further reduced supply dilution.

OUSD is currently contributing half of its performance fee to buy back OGV from the open market and distribute it to OGV stakers as rewards. While the performance fee for OETH has historically been used to accumulate CVX, OETH fees are now being used to buyback and redistribute OGV to stakers.

In September, the OGV DAO earned $69,000 of fees from OETH, accounting for the majority of value accrual to the DAO. Therefore, OGV buy backs could increase significantly if the governance proposal passes.

Upcoming Reductions

The next emission reduction will take place on September 24th, 2024. Monthly inflation will see a 60% reduction to 6.72M.

Following this, the final inflation reduction is slated for May 21st, 2026 – bringing monthly emissions to a mere 2.016M.

OGV inflation reduction schedule by block time (OGV Staking Docs)

Governing DeFi’s Most Innovative Yield Ecosystem

Staking OGV empowers you to participate directly in Origin DeFi’s growth via the OGV DAO.

By staking OGV, you receive voting power in the form of veOGV. It’s important to note that veOGV allocations are determined by the amount of OGV staked, as well as your chosen lockup period. The longer you lock up your tokens, the more voting power you get and the higher OGV APY you earn. We’ve implemented these mechanics to reward the commitment of Origin’s most active and loyal participants.

This design empowers users to create and vote on proposals across Origin DeFi. At the same time, stakers enjoy significant APYs on their staked holdings, which will be further sustained by the increasing protocol fees from Origin’s OTokens.

Discover how you can help shape the world of Origin DeFi: OGV Dashboard

Yasthiel Devraj
Yasthiel Devraj
Originally released by Origin Protocol
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