Yeah I like this proposal. The way I view it is the protocol today says “please come in the Senior Pool, and you’ll earn these rewards but there’s also this withdraw fee and reward forfeiting mechanism because we want to incentivize long-term capital”. But that same mechanism that attempts to keep capital into the Senior Pool prevents it from doing other long-term oriented things that the protocol may want. Specifically, it makes it hard to move from Senior Pool to being a Backer. Since Backers are taking on long-term risk and exposure with the protocol, it seems completely ok to allow them to move into that position without taking a withdraw fee. The money is being kept in the protocol regardless, so it doesn’t seem fair to penalize you for wanting to make that shift. Either way, you are long-term capital for the protocol.
Also, generally the Senior Pool is ideally the best place to park stables in crypto. And maybe you’re someone who wants to be a Backer, but there aren’t any good pools open when you arrive. This proposal makes it an easy call to say, “cool, I’ll put my money in the Senior Pool, and then as soon as the next good pool opens, I’ll just move it over to become a Backer”. Otherwise you make people do the calculus and say, “well, maybe I’ll keep it in Compound until the next Backer pool opens. Cause I wouldn’t want to take a 0.5% hit just to take it out and become a Backer in 2 weeks (not to mention forfeit my GFI rewards)”.
So overall, I think this simplifies the mental calculus a lot.
It’s also worth recognizing that while that money is in the Senior Poo, it is in the Senior Pool, same as everyone else. That means their capital is at risk, and could theoretically take loss, or it could be used in other deals, and there may not be liquidity. So no one is getting a “special deal” here. All that’s happening (to me) is the protocol is now saying, “you can be long term in the Senior Pool, or long term as a Backer, and you won’t be penalized for switching from one to the other” As long as the money is in the protocol, the protocol should be happy.