The current CARROT → PUFFER conversion period is 6 months. A governance forum discussion raised the case that this may be too long, supported by on-chain data. This temperature check asks whether to reduce the conversion period to 1 month or keep it at 6.
Background
When the CARROT → PUFFER converter launched, the 6-month conversion window was designed to encourage long-term commitment and limit short-term sell pressure on PUFFER.
This topic was raised by community member Juanito and received broad support in the governance forum discussion, with several contributors providing data analysis and supporting arguments. This Temperature check formalizes that discussion into a community vote.
Why This Matters
The conversion period affects not only individual token holders but also the efficiency of the broader incentive system.
For: When the CARROT:PUFFER premium is high, every CARROT distributed through gauge voting buys less TVL per token spent. Reducing the premium by making the converter more practical to use means the same CARROT emissions could attract more liquidity across all gauges.
Against: Shorter lock-up periods might reduce incentives for long-term users of the protocol by increasing selling pressure.
Worth noting: CARROT already has a 30-day vesting period after claiming. So a 1-month conversion period would mean an effective 2-month lock from claim to PUFFER.
The Vote
The community will vote on two options:
Yes — Reduce the CARROT → PUFFER conversion period from 6 months to 1 month for future epochs.
No — CARROT → PUFFER conversion remains 6 months.
Existing Conversions Would Not Be Affected
Conversions already in progress would remain on their original 6-month schedule. The reduced period would apply to all new conversions initiated after the change takes effect.
Timeline
Discussion: 1 week
Snapshot vote: 5 days
Implementation: Following a successful vote
The outcome selected by the community will be implemented accordingly.
The original 6-month design made sense as a way to encourage long-term alignment and limit short-term PUFFER sell pressure.If users view the conversion period as too long, they may simply sell CARROT instead of converting, holding, or participating in governance.
The main benefit of the period reduction is that CARROT incentives could become easier to value, more practical to use, and more efficient at attracting TVL across gauges, even a 1-month conversion period is also not instant liquidity, since CARROT already has a 30-day vesting period after claiming. In practice, users would still have around a 2-month effective lock from claim to PUFFER.
So this is a tradeoff. If the proposal is approved, the DAO will likely need to monitor the CARROT premium, conversion rate, PUFFER sell pressure, and TVL per CARROT emitted after implementation.
Hello community! Im the original proposal writer (Juanito) and I am so happy that this goes finally to votation!
First of all, just for your information, if you want to read all the information, on-chain data and discussion with other community members we have previously had to reach the current proposal form feel free to check this link.
One clarification about the “Against: Shorter lock-up periods might reduce incentives for long-term users of the protocol by increasing selling pressure.” statement. It is technically true but with one nuance; The current 6 month conversion time does not “reduce sell pressure” but just postpone the sell pressure. As we saw from the onchain data I provided in the comments most of the CARROTs stay as CARROT instead of using the current conversor but CARROTs will need to be converted someday to PUFFER (as there is a reserved amount of PUFFER backing this CARROT and we still do not know what will happen with CARROT when the supply ends in 4-5 months) so by voting YES to this proposal we are helping the future sell pressure be transferred to PUFFER gradually instead of “all at once”).
About the premium right now is at 0.01452 * 0.55 / 0.00484 = 65% premium. I foresee if the proposal passes for it to be stabilized in around 10% premium. Meaning that this proposal will potentially capture more than a 50% of TVL for pufETH gauges than what they are currently attracting
I support this proposal. While I align with Puffer’s vision, I am disappointed by the current TVL and the drop in price. I believe that shortening the conversion period from CARROT to PUFFER would enhance the appeal of staking rewards and likely attract more investment. Nothing changes without change. I hope this proposal passes and the situation improves.