Emergency Community Signal Vote: Conducted outside the standard framework due to time sensitivity. The team commits to executing the winning option.
Vote
[ECSV-01] DUST Liquidity Pool Consolidation
Why this vote is happening now
DUST liquidity is currently split across multiple pools. As of July 11, 2026, 03:00 UTC, the total USDC available across all DUST pools is approximately $25,880:
- Uniswap V2 50/50 (DUST/USDC): ~$3,700 USDC
- Balancer Weighted 20/80 (USDC/DUST): ~$17,820 USDC
- Balancer AutoRange (DUST/USDC): ~$4,360 USDC
Fragmenting it across multiple pools with different pricing mechanisms has created continuous arbitrage loops between pools.
What you are voting on
Which pool structure receives DUST liquidity nUSDC incentives going forward.
Facts to understand before voting. Read this section.
- The pool ratio determines the implied price of DUST. The same total USDC supports a different DUST price depending on the weight of the pool in which it sits. A 50/50 pool prices DUST lower but provides symmetric depth for buys and sells. A 20/80 (USDC-light) pool supports a higher nominal price with the same USDC but offers thinner real exit depth for each percent of price impact. An AutoRange pool will keep repricing DUST as long as it is within range and absorb selling pressure more efficiently because of its concentrated behavior before it starts repricing again to re-enter the range.
- Migrating between pool ratios could force DUST sales. An LP moving from the 20/80 and/or AutoRange pool into the 50/50 pool must source USDC to match their DUST, which, in practice, means selling a portion of it. This creates one-time additional sell pressure during any migration toward a more USDC-heavy ratio.
- No option directly adds USDC to the system except if users choose not to sell DUST to participate in a more USDC-concentrated pool. This vote changes where existing liquidity sits and how efficiently it trades, not how much liquidity exists. Price direction will continue to be determined by market buying and selling.
Options
Option 1: Balancer 20/80 Weighted Pool
All LP incentives go to the Balancer 20/80 pool.
Consequences: Supports a higher nominal DUST price per USDC; LPs remain majority-DUST; no forced selling for LPs already in the 20/80.
Trade-offs: Thinner real USDC depth at any given price level, meaning larger price impact when sells arrive; single-sided DUST deposits into this pool function as delayed sell pressure; AutoRange LPs who migrate would cause additional selling pressure directly or indirectly.
Option 2: Uniswap 50/50 Full Range Pool
All LP incentives go to the Uniswap V2 50/50 pool; incentives on the Balancer 20/80 are terminated.
Consequences: Simplest structure; symmetric depth for buys and sells; no weighted or rebalancing mechanisms; a single venue for all price discovery.
Trade-offs: Implies a lower nominal DUST price for the same total USDC; 20/80 and AutoRange LPs who migrate must sell a portion of their DUST to enter (see Fact 2), creating one-time sell pressure during the migration window.
Option 3: 50/50 & 20/80 Pools Equally
LP incentives are split between the two pools equally.
Consequences: Both structures are preserved; LPs choose their own exposure profile; no forced migration in either direction.
Trade-offs: Liquidity and incentives remain divided across two pricing curves, which sustains some inter-pool arbitrage and spreads already thin depth across two venues.
Option 4: Make no changes
Incentive distribution remains exactly as it is today. 20/80 Weighted pool and AutoRange pool are both incentivized.
Consequences: No migration effects; no disruption to existing LP positions.
Trade-offs: The current fragmented structure, and the arbitrage dynamics described above among the remaining active pools, continue unchanged.
What this vote does NOT decide
Token unlocks, the emissions schedule, the pending RFC, any buyback or supply-reduction program, and treasury actions are all out of scope and will be handled through the standard governance process. Voting here does not waive or replace any of those discussions.
After the vote
The team will execute the winning option within 12 hours of vote close.