# Passed: DAO Proposal Calls for Extension of Liquidy Mining Incentives and Rise in Network Security Emissions

**Published by:** [Canto](https://paragraph.com/@canto/)
**Published on:** 2022-11-12
**URL:** https://paragraph.com/@canto/passed-dao-proposal-calls-for-extension-of-liquidy-mining-incentives-and-rise-in-network-security-emissions

## Content

As Canto’s third month of liquidity mining incentives nears its completion, early contributors propose to the DAO an extension of the program with the following parameters in order to maintain capital efficiency and align Canto stakeholders. The proposal calls for net liquidity mining emissions to remain unchanged, and for network security emissions to rise to their intended level.AnalysisThe Canto network’s current emissions parameters were voted on by the Canto DAO on September 17th. These parameters were a significant improvement over prior levels as demonstrated by the increase in both TVL (from roughly 63 million to a peak value of 160 million) and overall network activity (from an average of 5,000 transactions per day to well over 15,000 per day). The update raised capital efficiency for Canto holders and reduced price volatility for liquidity providers. Since launch more than $230M worth of assets have been bridged to the Canto network and subsequently used to buy CANTO, borrow NOTE in Canto’s Lending Market, and provide liquidity in Canto’s native DEX.Inflation ChangesNetwork security emissions will move from an inflation rate of 4.2 Canto per block (roughly 2.1% annualized) to an inflation rate of 10 Canto per block (roughly 5.3 % annualized) minting ~4.5m new CANTO tokens over a 30-day period. This change will increase network security emissions to their intended level, which was previously prevented by the now-rectified GovShuttle module bug.Liquidity Mining ProgramPer Canto’s Genesis and token distribution model, the fourth-month liquidity mining program will release tokens linearly per block to LP token holders and lenders:30.8 million CANTO will be released over a 30-day period72.6 CANTO per block, of which 72 goes to LP token holders and 0.6 to stablecoin lendersWill begin when the proposal is executed on-chain.This remains the same as the prior period.CANTO/NOTE LP Token Supply MarketReceives 44.08% of the total block reward32 CANTO per blockETH/CANTO LP Token Supply MarketReceives 22.03% of the total block reward16 CANTO per blockATOM/CANTO LP Token Supply MarketReceives 22.03% of the total block reward16 CANTO per blockNOTE/USDC LP Token Supply MarketReceives 5.51% of the total block reward4 CANTO per blockNOTE/USDT LP Token Supply MarketReceives 5.51% of the total block reward4 CANTO Canto per blockIn addition to liquidity mining rewards, a further 0.6 CANTO is released per block to stablecoin lenders on the Canto Lending Market:USDC Token Supply MarketReceives .41% of the total block reward0.3 CANTO per blockUSDT Token Supply MarketReceives .41% of the total block reward0.3 CANTO per blockThe program will begin immediately when the proposal is executed on-chain.About CantoCanto is a Layer 1 blockchain built to deliver on the promise of DeFi – that through a post-traditional financial movement, new systems will be made accessible, transparent, decentralized, and free. Created by a loosely organized collective of chain-native builders, Canto is a new commons powered by Free Public Infrastructure.

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