After hours of discussions and listening to community feedback we have updated the proposal for XVS rewards increase. This update comes with a very important change in the fact that there will be a 275k XVS borrow cap (possibly to be followed by removing XVS borrowing completely in future proposal). This will reduce the possibility of voting manipulation and also increase the demand for XVS to acquire the higher APY % for supplying XVS. This change will also allow easier vXVS voting implementation as there will be no manipulation possible and you will have to actually buy and own XVS to vote.
This proposal is in line with current parameter restrictions and The impact on other assets including VAI should be minimal and can be updated in future proposals as needed.