120,000 GNO ~ 8% of the total supply.
That would be at todays prices 10k GNO per month ~ $1.2M in rewards each month. That should create some serious liquidity (not seen in the prediction market space before) but it might indeed be exactly what is needed to lift prediction markets from a mostly theoretical concept to something actually being used and playing a big role.
I would like to connect this proposal with a proposal I did recently: activating OWL.
It does not make a lot of sense to use pure stable coins for prediction markets - capital costs are just insane and your are literally throwing away money. It is also bad to have the markets denominated in all kind of different assets. OWL could solve this problem. If GnosisDAO is not (yet) comfortable with doing efficient yield farming we could still partner with e.g. YEARN. And thus effectively turning OWL into a wrapper for a basket of different YEARN stable coin strategies.
- GnosisDAO would provide GNO incentives to provide liquidity for specific conditional tokens denominated in OWL
- GnosisDAO would print OWL and sell it for stable coin
- GnosisDAO would use stable coins and put them into different YEARN vaults (could potentially buy insurance cover if needed)
- Interest on stable-coins is largely payed forward to the user by an steadily increasing OWL/USD rate. (similar to tokens like c-USDC, CHAI, yDAI)