Change Commission Buy and Burn to BGOV HOLDER and Freeze Distribution

bZx Improvement Proposals
#1

I’d like to propose this change for create more interest in project and attract much more user and, at same time, lower the selling pressure to BGOV.
Now the commission generated in different coin (bnb, busd, usdt, etc) are periodically converted in BGOV and burned. This have the only goal to low the number of bgov in circulation but do not give any incentive do buy and hold BGOV
So i propose this:
If you STAKE BGOV (only bgov, not bgov/bnb) from 1 to 30 of the month you will receive a distribution of a commission (the one that now are used for buy and burn)
The distribution come in all coin that they have got the commission, so BGOV HOLDER will receive every end of month (like a salary) a distribution of his share of all coin generated in the commission.
So, if i hold and stake for one month BGOV i will receive the distribution of different coin (bnb, busd, usdt, etc)
Think about how powerful can be this changing for attract new user that buy and stake and freeze for 30 days bgov and receive stable coin, bnb and many others.
Personally i will continue to stake and never sell my bgov till i will have the distrubution and also this can become a stronger marketing tools for attract new user in fulcrum.

SUMMARIZING I PROPOSE
To change the periodic use share of commission earned for buy and burn BGOV in
Distrubute montly the commission to holder of bgov that have stake for 30 days before

Example

Period 1 to 30 march
Commission generated:
100 bnb
10000 usdt
10000 busd
10 eth
1000 bzx

20% of them go to insurance fund
80% distributed proportionally to all BGOV HOLDER that have stake bgov for the 30 days before

Example

BILL stake 100000 bgov for 30 days
Mark stake 200000 bgov for 29 days and then withdraw 50000 (only 150000 will be eligible)
JANE stake 250000 bgov for 30 days

So 500000 bgov are eligible for distribution and:
BILL will receive the 20%
MARK will receive the 30%
JANE will receive the 50% of share

so BILL in end of month will receive
20% of
80 bnb (16 bnb)
8000 usdt (1600 usdt)
8000 busd (1600 busd)
8 eth (1,6 eth)
800 bzx (160 bzx)

The commission of transaction can be deducted from the distrubution.

2 Likes
#2

This is an interesting suggestion. Except for the 30 day staking requirement, it’s similar to what ETH Fulcrum does with BZRX staking (where fees are shared either as stablecoins if paid in stablecoins or as BZRX for non-stablecoin fees which are used to buy BZRX).

Something similar was originally planned for BGOV as well, but it was changed to the current buy-and-burn model after a governance vote.

I think a fee sharing model is a good one (although we could talk more about the details), and I think it has the very big advantage of giving people a reason to hold the token instead of just dumping it for farming rewards (in addition to the governance voting rights they have).

My main question for you is what you think we should do about inflation. One of the biggest advantages of the buy-and-burn model (other than being popular with the community) is that it helps to control inflation from the farming rewards. The current goal is to cap tokens at 250 million.

How will you control inflation without a token burn? Would you suggest stopping farming rewards of BGOV? In which case how will you maintain liquidity in the lending pools? Or are you thinking of a hybrid model with both burn and fee sharing combined?

1 Like
#3

Is for this that is important the freeze.
I can also add to propose to create a different pool for BGOV that want be eligible for commission sharing.
This special pool will freeze the bgov staked for minimum 30 days and you can withdraw only after this date.
In this special pool the apy of bgov that we got can be also less that normal bgov pool (maybe 20% less of apy) but we got distribution.
So think about it: all trader do not freeze for long time, all speculator also.
The commission is only for who really believe and invest.
I have almost 300l bgov and i do not solo at 0.48 becouse i believe. Now every day i got more bgov, but my total value is less than day before.
So if i think like a speculator i have to sell as price goes up, but if i believe in project i will hold and wait. But for who believe need some rewards.
So i will happy to take less bgov every day but take many other stable and important coin (bnb, bzrx, eth) after 30 days.
Of course all this will be a amazing marketing campaign. No one project pay rewards in stable or main coin. See unifarm, you got many coin but not main or stable, also justlend, you got many coin but not stable or other.
Fulcrum can be first in the word to make something like this.
Can you imagine STAKE BGOV and get BNB, USDT, BUST, ETH, every months!!!
Will attract much more money and transaction, and people will only buy and stake and not sell, THIS will bring the price up no matter about 250 milion. Look eth or bnb, price continue to grow not for burn but for use and new user that come to buy

1 Like
#4

I agree burn wont compel anyone to hold on to bgov, rewards as in this proposal will motivate people to hold.
So we can go for 20% insurance, 30% burn to address inflation, and 50% fee distribution. Or some other agreeable split.

1 Like
#5

Looks cool, but now make those calculations for small fish with 0,01% of the staked amount (which is around 9700 bgov at this moment).

0,008 bnb
0,8 usdt
0,8 busd
0,00008 eth
0,08 bzrx

To convert all those crumbs costs more in tx fees (even on BSC) than they’ll be worth. Of course you can wait a few months, but then it’ll still eat up 20% of your rewards.

So why not do like BZRX on eth mainnet with even higher tx fees?
All stablecoins are combined in 3Pool in Curve, compounding fees, so at least they’ll not sit idle doing nothing. But there’s no such thing on BSC… or is there?

On BSC, we have something similar, it’s called Fulcrum Lend! We put the all the rewards in the form of a single i-token (transform BNB/ETH/BTC/BUSD/USDT into only i-BUSD or i-USDT whichever is giving the highest APR) and all the rewards are auto-compounding!

That way the rewards are generating interest,
People can choose when to claim them or simply let them sit, generating even more interest,
They’ll add to the TVL of the platform,
All the rewards will be combined into 1 i-token (less diversification, cheaper for the user).
Perfectly suited to showcase a passive income!

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