The Governance and Coordination Group, represented by ImdioR and Rhano, proposed a technical plan (CP-4) to renew incentive rewards for the RWA Market on Aave. This proposal involves minting 100,000 CFG to be distributed over the next 90 days, starting from 5th January 2023¹. The RWA Market, a collaboration between Aave and Centrifuge, has maintained a strong narrative despite a significant drop in the total value locked (TVL) in DeFi over the past nine months¹.

The proposed rewards aim to encourage stable yield earning and active participation in Centrifuge Governance. They will be distributed at a fixed rate of 1111 CFG per day across the AAVE Centrifuge market¹. However, EzR3aL raised concerns about the timing of the proposal, suggesting that it might be more beneficial to wait for improved market conditions before renewing rewards². In response, ImdioR highlighted the relative stability of the TVL in RWA compared to the general DeFi TVL³.

The proposal, if approved, will take approximately 28 days to pass, with the rewards being minted shortly thereafter¹. ImdioR also noted the stability of Tinlake TVL, which has remained high, indicating that investors are seeking more stable and secure investments, such as RWA³. The proposal for distributing 100,000 CFG rewards, which represents approximately 0.02% of the total supply, is still under consideration and will be decided by CFG token holders through a Snapshot vote and, if passed, an on-chain vote⁴. EzR3aL, while acknowledging the stability of the market compared to DeFi markets, remained neutral on the proposal, suggesting that the rewards might not have a substantial impact under the current market conditions⁵.