Change governance votes to MIR-UST stakers

Right now if you have Mirror tokens there are two things you can do with them.

  1. Stake them to governance. This allows you to vote (or more realistically based on recent history, decline to vote) on Governance proposals

  2. Stake them to the MIR-UST pool. You don’t get to vote, but you get a bunch of money

I propose we combine them. Eliminate explicit Governance staking, and give voting rights to those staking LP tokens.

A) You no longer need to choose between democracy and $$$
B) Deeper liquidity in the Mirror-UST LP
C) Only pay out rewards to people that vote x% of proposals each week. I’ve heard people suggest this before, but the prospect of losing 100% APY for the week vs 8% is night and day. We can burn the “missed” MIR

This is not possible from a technical standpoint, here’s why:

  1. LP pairs is token that consists of two tokens, in this case, MIR and UST, when someone buys MIR, they deposit UST and receive MIR, and vice versa when selling, this is where impermanent loss comes, let’s say the price of MIR jumps to 10$, well then the ratio of LP pair changes, and even though the value of LP pair is higher you have less MIR.

  2. Governance, you put MIR in governance, then it get’s locked while the poll lasts, this is the second reason why you can’t vote with LP tokens, 1 MIR in governance if always worth 1 MIR, no matter if the price goes to 0 or 1000$, but 1 LP pairs can have 1 MIR, 20 MIR, 0 MIR or 1000 MIR, what this means is that voting power of LP pair would change all the time, but the bigger problem is let’s you vote with LP pair, and the price goes UP, then your LP pair has less MIR in it, and you voted with more MIR than you currently have, what then?