In general, I’m supportive of liquidity incentives because it seems clear that rETH adoption is the limiting factor for protocol growth, and this will likely remain the case for some time. We can always adjust incentives in the future if this changes.
That said, I’d like to point out that we are discussing oDAO budget changes without an agreed security model in place. We should view the oDAO as, in part, a security feature of the protocol, which means that reducing oDAO compensation is also a reduction in security. I think this is worth its own discussion, so I made a thread here to discuss: oDAO Security Model
I encourage everyone to consider a deliberate decision on oDAO compensation so that we can make informed budget changes overall.
Also, I’ll take another opportunity to promote my article on suggested RP tokenomics changes which discusses inflation heavily: Rocket Pool Tokenomics 2.0, Pt 4: - HackMD