# Proposal for external incentives on Osmosis **URL:** \ **Category:** Governance\ **Created:** [February 2, 2023, 11:17pm UTC](https://community.sommelier.finance/t/proposal-for-external-incentives-on-osmosis/1066 "2023-02-02T23:17:28Z")\ **Posts on this page:** 4\ **Page:** 1
**Author:** ![AntiquityStudio](https://avatars.discourse-cdn.com/v4/letter/a/7ab992/32.png) [@AntiquityStudio](https://community.sommelier.finance/u/AntiquityStudio)\ **Post date:** [February 2, 2023, 11:17pm UTC](https://community.sommelier.finance/t/proposal-for-external-incentives-on-osmosis/1066/1 "2023-02-02T23:17:29Z")
I am proposing that we provide external incentives for the SOMM/OSMO liquidity pool on Osmosis. With all the positive excitement around the proposed staking rewards, I think it’s important to also incentivize those who provide liquidity on Osmosis. This is a popular and successful feature on Osmosis, and it will provide more reasons for people to hold the SOMM token. This proposal will have a positive impact on the Sommelier project; I was thinking about it a while back, and now I want to take the chance to be proactive about it. With that said, I drafted the following language and I hope I can get some advice/input: > [@](#): > > I am a token holder and general fan of the Sommelier project, and I propose that we allocate X SOMM as an external incentive to the OSMO/SOMM liquidity pool on Osmosis. This amount should be paid from the Sommelier community pool. The project is implementing staking rewards for the SOMM token, so we should also incentivize people to continue to provide liquidity on Osmosis, where most people trade our token. This will ensure that liquidity continues to increase, price slippage is reduced, and holding the SOMM token is even more attractive. > > If passed, this proposal would result in the distribution of the requested amount to a multi-sig account, which will deploy the funds as an external incentive to the OSMO/SOMM pool on x date. The external incentive program will last for x days. I have left the amount of SOMM and duration of the rewards open because I would like some advice/input. I feel the start date should be before the staking rewards go live, because it’s clear that already there’s a lot of increased demand for the SOMM token. However, I welcome the good advice of people with more experience than me. I would also gladly volunteer to be part of any multi-sig, and I am sure there are other individuals that the community knows and trusts to help with that. ---
**Author:** ![Zaki](https://avatars.discourse-cdn.com/v4/letter/z/ee59a6/32.png) [@Zaki](https://community.sommelier.finance/u/Zaki)\ **Post date:** [February 2, 2023, 11:24pm UTC](https://community.sommelier.finance/t/proposal-for-external-incentives-on-osmosis/1066/2 "2023-02-02T23:24:52Z")
Fee auctions will also be starting at the same time as staking rewards. The initial auction looks like 2.6k of fees but somm liquidity will be needed for people to participate in the auctions which we expect there to ongoing to demand for somm liquidity for this. ---
**Author:** ![Zaki](https://avatars.discourse-cdn.com/v4/letter/z/ee59a6/32.png) [@Zaki](https://community.sommelier.finance/u/Zaki)\ **Post date:** [February 2, 2023, 11:25pm UTC](https://community.sommelier.finance/t/proposal-for-external-incentives-on-osmosis/1066/3 "2023-02-02T23:25:13Z")
Very supportive of moving forward. ---
**Author:** ![poldsam](https://avatars.discourse-cdn.com/v4/letter/p/278dde/32.png) [@poldsam](https://community.sommelier.finance/u/poldsam)\ **Post date:** [February 3, 2023, 3:46am UTC](https://community.sommelier.finance/t/proposal-for-external-incentives-on-osmosis/1066/4 "2023-02-03T03:46:09Z")
Great initiative, very much in support of adding external incentives to liquidity providers!