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+---
+sccp: 2120
+network: Ethereum & Optimism
+title: Lower Liquidation Reward
+author: db (@dbeal-eth)
+status: Draft
+created: 2024-07-04
+type: Governance
+---
+
+# Simple Summary
+
+This SCCP proposes to reduce mark for liquidation reward and liquidation reward on Optimism and Mainnet both to 0.1 SNX.
+
+# Abstract
+
+The liquidation rate determines how much the account initiating a liquidation gets as compensation for gas and effort. The mark for liquidation rate similarly blocks it.
+
+# Motivation
+
+The Synthetix v2x system prevents the liquidation of accounts less than the mark + liquidation reward. Since the current reward on L1 is 30 SNX, it has not possible to liquidate these small accounts even if they have insufficient collateral ratio. This has lead to thousands of small accounts with bad debt on v2x which cannot be liquidated due to this limitation. In preparation
+for the migration to Synthetix v3, as well as general cleanliness and health of the system, these limits should be lowered to allow for the cleaning of all these unnecessary accounts.
+
+# Copyright
+
+Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).