> For the complete documentation index, see [llms.txt](https://docs.dolomite.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.dolomite.io/dolomite-governance/past-governance/dip-04-rebalance-odolo-emissions.md).

# DIP-04: Rebalance oDOLO Emissions

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* **Outcome:** Passed
* **Vote date:** April 1, 2026
* **Official vote:** [BeraVote](https://app.beravote.com/space/dolomite/proposal/QmTQa2HUbKbcAi3S48RjyNpAZyMQeLi7cbrsrbZkkbX7bD)
* **Final vote totals:** 3.59M veDOLO for; 218.07K against; 0 abstain
* **Implementation status:** Implemented April 9, 2026
* **Original discussion:** [Dolomite Governance Forum](https://discord.com/channels/945099853929795607/1478915809031094373)
* **Current documentation:** [Token Mechanics](/dolo/token-mechanics.md#odolo)
  {% endhint %}

The proposal text below is preserved exactly as presented for the governance vote. Only the status summary above is updated over time.

***

## Title

\[DIP-04] Rebalance oDOLO Emission Distribution

## Author(s)

Dolomite Team

## Date

2026-03-04

## Related Discussions

[\[DIP-02\] Adjust oDOLO Emissions Distribution Across Chains & Assets (previously passed)](https://discord.com/channels/945099853929795607/1409561116165537905)

## Simple Summary

This proposal updates the chain-level distribution of oDOLO emissions to better align incentives with TVL, utilization, and user activity across chains. It reduces Berachain’s outsized allocation, increases Arbitrum’s allocation to reflect its organic growth and user base, and gives Ethereum a modest boost to match its dominant TVL share. Botanix remains unchanged at 5%.

## Abstract

Since DIP-02 established the current oDOLO emission schedule, the protocol has expanded significantly in both user activity and cross-chain TVL. This proposal reviews the current chain-level weights in light of that growth and proposes adjustments to better align incentives with where organic market activity is strongest. Ethereum has been an extraordinary success story for the protocol, now anchoring 84% of total TVL, thanks in no small part to WLFI incentives on USD1. With that foundation in place, this proposal looks ahead to Arbitrum as the protocol’s next targeted area for growth, a chain with the protocol’s broadest user base (50,000+ users, $1.07B in trade volume) and the organic activity to support increased incentives. A modest reduction on Berachain, where the network is transitioning past its initial bootstrap phase, frees up allocation to support that next chapter.

## Motivation & Background

* Transition incentives on Berachain to reflect it's evolution from a bootstrap phase to a steady-state. It still retains a meaningful share of oDOLO, but recalibrates to match current utilization.
  * To reflect usage, we will also spin down BYUSD oDOLO incentives on Berachain.
* Give a modest increase to incentives on Ethereum. This reflects the growth in TVL, but also recognizes that a large driver of growth right now is USD1 and WLFI incentives.
* Provide a more substantial increase to incentives on Arbitrum in order to grow usage on our longest-used and most diversified chain, as well as being a chain with a large opportunity for growth.
* Keep Botanix where it is, with a very modest pool of oDOLO incentives as the chain builds up liquidity. The aim of this strategy remains the same - make a move into DeFi on Bitcoin, a potential blue ocean with huge upside.

## Specification

**Chain-Level Distribution**

**Old:**

* Arbitrum - 30%
* Berachain - 35%
* Ethereum - 30%
* Botanix - 5%

**New:**

* Arbitrum - 40% *(+10%)*
* Berachain - 20% *(-15%)*
* Ethereum - 35% *(+5%)*
* Botanix - 5% *(no change)*

**Berachain Sub-Allocation**

**Old:**

* HONEY - 20%
* USDC - 20%
* BERA - 20%
* WBTC - 15%
* ETH - 15%
* BYUSD - 10%

**New:**

* HONEY - 20%
* USDC - 30%
* BERA - 20%
* WBTC - 15%
* ETH - 15%

## Economic & Market Impact

This proposal aims to:

* **Stablecoin/Majors Depth:** Grow the lending supply of stablecoins and majors on Arbitrum, facilitating more profitable looping.
* **Growth on Ethereum:** Further fan the flames of growth on Ethereum.
* **Minimize Downside:** While this decreases oDOLO incentives on Berachain, right now the rates are elevated to such a degree that a decrease should hopefully still leave appealing reward rates.

## Risks & Considerations

* Reduced emissions to Berachain may affect growth and liquidity.
* Botanix is a less proven chain, so utilizing incentives there has the risk of less return.
* With the scale of TVL on Ethereum, an increase may have limited effect.

## Implementation Plan

* Update emissions distribution in rewards smart contracts.
* Announce the changes to the community with effective date.

## Success Criteria & Metrics

* Change in TVL of affected assets and chains

## Additional Information & References

* [Dolomite DOLO Mechanics Documentation](https://docs.dolomite.io/dolo/token-mechanics)