Revised BGOV community proposal

After much discussion with prominent members of the community here is a proposal to:

A) Fees spent in whatever coin they’re generated in the following way:

15% BGOV burn monthly
50% fee share to BGOV holders weekly
15% fee share to BZRX holders weekly
20% insurance fund

B) On each coin burn reduce the maximum cap of BGOV by the amount burned (current max supply to be shown on BSC site)

16 Likes

Looks good to me. Let’s put this to a vote asap.

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Looks good, we discussed it already in the telegram channel. Lets make a vote asap

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Yes, positive. Can we vote on this proposal, i like it.

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I like it. Lets put it up for a vote!

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Great Proposal and thanks for posting it Baz.

I’m on board

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Bought in at .29 still holding, holding to moon. This might make it moon. Do it people.

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Great idea let’s get it done. The first coin burn without anything set in place to what will happen after with regards to further burns wasn’t great marketing. This is much better :+1:

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This looks great. Will definitely give BGOV more value and give people more incentive to hold

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I like the proposal. I am copying below a comment I made in Telegram explaining the rationale behind the suggested changes:

"Basically it will reduce the sell pressure on the token - a lot of people currently dump BGOV as soon as they get it as rewards, instead of compounding it back into the BGOV vault. On the other hand, we will also lose the buy pressure generated by using the fees to market buy BGOV, but the hope is that the drop in sell pressure is more than the drop in buy pressure and overall the price goes up. If you remember what happened after the burn a couple of weeks ago, there was a very small price boost and then the price kept declining after that, even though a large amount of BGOV was bought with fees and burnt. This was because there was a one-time big buy, but the sell pressure was constant (and remains constant). So hopefully this reform will fix it.

This is an experiment - we’ll have to see if it works"

On a separate note: I want to clarify what the proposal means by “fee share to BZRX holders” - it is not easy or practical to find a way to get funds back from BSC to Ethereum to pay BZRX holders on Ethereum - I think the best way of doing it is simply to give fee share rewards to BZRX holders who are staking on BSC with iBZRX - basically the same people who are farming BGOV on BSC right now.

Similarly, the fee share to BGOV holders will go only to BGOV holders currently staking in the BGOV pool and earning BGOV rewards.

On another note, it is important that the the burn and the fee share both happen at regular, scheduled intervals, because it gives ongoing continued reasons to hold BGOV, instead of holding it in the hope that there will at some future (unspecified) time, be burns or fee distributions…so that’s another good thing about this proposal.

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+1 let’s get this to a vote

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I support a version of this proposal, but I’d like to change slightly for technical feasibility:

  • sweepFees will be a non-permissioned function (anyone can call)
  • calling will extract generated protocol fees and do the following:
    • 65% are sold for BGOV, then 15% burn (max supply reduced by this much), and 50% distribute to BGOV farmers/stakers
    • 15% are sold for BZRX, and distributed to BZRX farmers/stakers
    • 20% are sold for BNB and added to the insurance fund
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Thanks Tom - so this looks like a variant of what is currently done on Ethereum and works well there.

The biggest tweak I can see in this from the original proposal is that fees will not be paid in stablecoins or BNB.

Rather, the accumulated protocol fees will be used as follows:

  1. 65% of fees will be used to buy BGOV on PancakeSwap and 15% of the BGOV will be burnt and the remaining 50% will be used to pay BGOV stakers in the BGOV pool (in effect, BGOV stakers will get a big boost on BGOV rewards from fees, instead of just getting farming rewards from inflation).

I assume this is because it is not technically feasible to pay fees to BGOV stakers in stablecoins, or in a currency other than BGOV, like BNB?

  1. 15% of protocol fees will be used to buy BZRX on PancakeSwap and this will be distributed to BZRX stakers on Fulcrum (ie, iBZRX stakers) as BZRX, on top of the BGOV farming rewards that iBZRX stakers get. So iBZRX stakers will get more BZRX as well as BGOV.

Unless I’ve misunderstood you, and you mean that 15% will be sold to buy BGOV, which will be given as a top up to farming rewards for iBZRX stakers? Because I don’t think there is much liquidity on PancakeSwap to buy BZRX?

  1. 20% will be used to buy BNB on PancakeSwap and this will be added to the insurance fund.

Does that sound about right?

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+1 this adds value to BGOV. really like it!

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You are mostly correct. It’s most technically feasible to distribute additional BGOV purchased from fees to BGOV farmers in the BGOV pool. The purchased BZRX will be sent directly to iBZRX, distributed proportionally to all iBZRX holders or stakers on bsc.

The team intends to provide additional BZRX liquidity on Pancakeswap once it builds up there.

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That’s a great idea!
But I miss the percentages for the platform/team.

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There are no percentages for the platform and/ or the team. BGOV holders will profit, and iBZRX holders or stakers on BSC will profit.

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So. 65% of the fees will be used to buy BGOV. 15% will be burned monthly, 50% will be divided to BGOV holders weekly. Another 15% of the fees will be divided for stakers/ holders of iBZRX on BSC every week and the remaining 20% will be used to purchase BNB to add to the insurance fund.

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Correct, but all the actions happen during each sweepFees transaction, not on a weekly or monthly schedule.

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Thank you Tom. Even better.

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