Equalizing SDEX Rewards — 50/50 Distribution Between Buy and Sell Side
Aquarius proposes modifying SDEX reward distribution to split incentives 50/50 between buy and sell sides. The change prevents token issuers from dominating rewards through asymmetric liquidity while minting large volumes. It improves fairness, trader exit liquidity, and encourages symmetric market-making.
Aquarius has published a governance proposal to restructure SDEX reward distribution on its liquidity protocol. Currently, rewards go to the largest liquidity providers regardless of which side of the order book they're on. Token issuers can game this by minting large volumes and placing large sell orders without providing counter liquidity, creating asymmetric markets and exit risk for buyers. The proposal enforces a 50/50 split: 50% of rewards for the buy side, 50% for the sell side. This mirrors volatile AMM incentive structures and requires token issuers seeking maximum rewards to provide balanced liquidity in both directions. The change aims to level the competitive field for all market participants, improve safety for traders, and create healthier, more symmetric trading pairs.
