Time decrease of the CARROT-->PUFFER conversion

General
1

TL;DR
Currently, CARROT tokens require a 6-month conversion period to become PUFFER. This proposal asks the community to consider reducing that period to 1/2 months, increasing flexibility, usability for token holders, reducing the CARROT:PUFFER premium while maintaining the protocol’s long-term stability incentives and potentially increasing TVL with the same amount of incentives.

Background
At present, CARROT holders must wait 6 months to convert their tokens to PUFFER. This extended period was originally intended to encourage long-term commitment and reduce short-term speculation. However, on-chain data indicates that the lengthy lockup may limit active participation and practical use of the conversor within the ecosystem, as there has not been plenty of people converting CARROTS to PUFFER but mostly dump them in the market. This leads to an increase of the “premium” (which follows the following formula: PUFFER_price * 0.55 / CARROT_price) that currently sits at a 82.64% (0.02474 * 0.55 / 0.00745), meaning that we could potentially capture the double of TVL with the same amount of incentives if this premium is reduced to as close as possible to 0%.

Currently, theres already a 30 days vesting for CARROTs when claimed so by updating the time for the conversor to 1 month would imply an effective lock of 2 months. I’ll enable an option of updating this time to 2 months (which is an effective lock of 3 months) in case there are arguments sustaining this decision, but I believe that reducing it to 1 month would be much better for the protocol long term.

The Decision
Reducing the conversion period from 6 months to 1/2 month could:

  • Improve token liquidity and usability.

  • Encourage more engagement from the community in staking, governance, and platform activities.

  • Retain long-term incentives while making CARROT more accessible to holders who want a shorter commitment.

  • Increase the TVL of all gauges using the same amount of incentives.

The Vote:

  • For 1 month: Reduce the CARROT → PUFFER conversion period from 6 months to 1 month.

  • For 2 months: Reduce the CARROT → PUFFER conversion period from 6 months to 2 months.

  • Against: Keep the current 6-month conversion period.