Bancorians for a stronger BNT

Community Chatroom (DISCUSSION)
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A post surfaced in the past about retiring vBNT and Bancorians should read that proposal to get an understanding about this thread

I have taken that thread and turned it into a set of proposals to get the DAO moving forward on this process.

While creating proposals to sunset Bancor 3 for different tokens I skipped vBNT as it is different than the others.

Now that Carbon is out on Ethereum, the discussion can continue on how to sunset vBNT. I think we will need these proposals to make this a possibility

  1. BNT to become a governance token

Bancor 3 is a protocol in the process of being sunset and to be shutdown. Bancorians should NOT have any dependency on Bancor 3. This proposal is to have BNT be added as a governance token in addition to vBNT.

Bancorians should be able to stake BNT ANYWHERE on the Bancor site and be able get voting power in governance. This proposal is NOT looking to remove vBNT as a voting token and it will continue for now. The Bancor developers to advise the community on how BNT is to be made a governance token like vBNT.

  1. The Bancor v2.1 vortex to use 100% of fees to burn BNT

this should need no explanations, look at this photograph

image

the reduction in BNT supply is the most important number. This affects deficits as burned BNT is bought from the markets first. It becomes clear to outsiders that BNT is a deflationary token.

  1. Bancor 3 to use 100% of fees for BNT market buy back and burn

Bancorians and LPs staked in Bancor 3 get small yield benefit from 10% of fees accumulating in their LP tokens. Instead of 90% of fees in Bancor 3 to be used for buying BNT from the market this proposal will move this to 100%. Why? ALL BNT holders are treated the same and benefit equally no matter where you are stake. Token LPs in Bancor 3 do not care about the negligible 10% fees that they are receiving and would prefer for their positions to be in surplus. This proposal seeks to further help with deficit reduction efforts.

  1. Bancor 3 vBNT pool to be disabled when it is in surplus

Proposal will happen at the end after 1-3 are implemented if the DAO moves forward with the previous proposals. Proposal goes in tandem with proposal 5 and both are a 2 for 1 package.

  1. BNT deposits to NOT be allowed in Bancor 3

BNT should NO longer be staked into a protocol that is in the process of sunset and to be shutdown. BNT can be staked in the new site that lets Bancorians have voting power via BNT instead. No more vBNT or bnBNT to be created.

I do not support printing ANY BNT going forward and much less for those looking to get out of vBNT leverage position. There is a pool that can be use to swap for this purpose and Carbon where these tokens can be made available for sale. Any vBNT holder can get their BNT back from Bancor 3 or 2.1 as long as they have a position in v2.1 or the required bnBNT in Bancor 3.

I will put up proposals 1 and 2 after sufficient discussion has occurred or in 3 to 4 weeks.

7 Likes
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I think that vBNT should still remain and continue to be used as the governance token.

Post deficit recovery, and after Bancor has been sunset, if we choose to eliminate vBNT, other than BNT being used for a governance token, it will essentially have no other utility, and to most, will probably have no place in the average investors portfolio.

I have always felt that BNT needs more utility so that it can become more desirable to the average investor. So here is my suggestion post deficit recovery

vBNT - remain as a governance token
BNT - gets a share in all fees earned from Carbon when staked in a single asset pool ( no trades occur here )

If we do something like this, then people will still be able to participate in governance via vBNT, and BNT will get removed from circulating supply and into a pool which will capture the fees generated.

Post deficit recovery, we won’t need carbon to buy back and burn bnt. simply give the fees to the stakers. This will more than likely give a much greater benefit to the token holders anyways… and it will make BNT a much more desirable token to hold onto.

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vBNT will continue as a governance token.

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I feel like the contributors are constantly trying to strip use from vbnt. Either by not burning the token as originally intended or striping away its usefulness, as you’ve stated above, by giving bnt voting power.
I honestly think the best way forward is to just create a buyback on vbnt at a reasonable ratio and move on from it.

2 Likes
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A similar proposal already came up two weeks ago

If anyone wants a buyback for vBNT then feel free to create a proposal for the DAO to discuss

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I read the same one. Some people wanted more time after carbon launched before they would welcome the idea of buying back vbnt.

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I see it here where some wanted more time and this proposal is from April of this year

later another proposal came up more recently in the last two weeks by Sylent

and I don’t see people there wanting more time. There is a lot of disagreement in the recent proposal.

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@alphavalion Posting an Earlier discussion about the topic ^^

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Have done some thinking lately. Many BNT holders are also LP’ers on V2.1 and V3. Personally the short term goal is getting pools out of deficit and getting back 100% of our TKN.

What I miss for BNT is a long term incentive to hodl BNT. Why would anyone buy BNT now and hold long term? We all know BNT price needs to go up in order to fix current situation.

What reward will there be for new investors (non LP’ers) that want to buy BNT at this moment? Can we promise them anything once deficit is fixed? Can we promise staking BNT will get you x percentage of fees generated by Carbon?

And if so, can we come up with a marketing format? Take a risk now by investing in BNT and get rewarded later on once deficit is fixed + Carbon is taking off. These benefits for new investors could make the price go up, get out of deficit and get into a new era for for BNT.

Edit: if this is the wrong reply to this thread just let me know. Can start a new one. But I just got inspired to respond because of the title.

1 Like
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^^ Bingo. Do this right, and this alone can repair the deficit faster than any other proposed method

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Hi Alpha,

Thank you for posting this. Nothing here looks too complex to do.

I believe this can be done by sending TKN to the Carbon vortex where it would be converted to BNT. This can done either on B3 for supported tokens or by using a mechanism similar to what is being worked on for the POL (get oracle price then create disposable limit order on Carbon).

This part is complex, but is required anyway. For example, to handle the DAI in the Carbon vortex.

I believe this is a simple change to a parameter.

Not complicated to do if the community supports it.

I also think this is not too complicated.

As for:

I understand this to mean people can vote with BNT, vBNT and Carbon NFTs that represent BNT.

Is this correct?

2 Likes
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Just to give some perspective re. the technical aspect, I don’t see anything here that’s too complicated to implement, so FYI. It’s a collection of pretty small changes.

3 Likes
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I saw that and it was a discussion that started in early April before Carbon was out. Enough time has passed for the DAO to consider changes.

Sylent also came up with a proposal for a vBNT buyback in the last 2 or 3 weeks and it didn’t have any support from reading the comments.

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The most recent one was for a portion of the fees to be allocated to vbnt buybacks and the rest for bnt.

  1. Yudi mentioned that its an all or nothing contract, that its couldn’t be partial vbnt buys and bnt burn.
  2. The slippage would make a vbnt burn not worth it
  3. A poster mentioned that buying vbnt now would cause LP’s in the vbnt pool to go into deficit.
  4. I dont think the last post sylent made had much to do about a buyback
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The long term goal for BNT is a discussion for another thread as this is NOT the goal of my proposals. The main benefit for BNT holders is a deflationary token that captures value from the current Bancor protocols. EVERYONE including LPs in v2.1 and v3 that are NOT BNT holders benefit from a down only supply BNT token as the goal is to close all pools in surplus and BNT buyback help with the deficit.

My proposals all target the current situation which I think is a top priority for ALL Bancorians and further add strength for BNT. I think they also make BNT a better value buy for anyone looking at defi tokens for investing.

3 Likes
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The fees in v3 are all in BNT and sylent proposal was to buy vBNT with those BNT.

How is that not considered a buyback?

I added a comment in that proposal as to why I do not support buying vBNT. If you want Bancorians to buy vBNT then it should be a separate thread that the Bancor DAO can then vote on.

1 Like
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It doesn’t. This is a trade scenario.
The first post he brought up (the one I linked to, is a pure buyback without slippage.) is at a set ratio.
1.2 bnt per vbnt etc

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I see another option that I had not consider but this what I had originally:

  1. vBNT can stay as it is now and if Bancorians have it staked in governance via Bancor 3 then their voting power will still be available on snapshot.

  2. BNT to be made available for staking directly in governance for Bancorians to receive voting power on snapshot. This is similar to how vBNT functions right now except BNT will be the voting token.

New:

  1. Carbon strategy NFTs that contain BNT should provide LPs voting power on snapshot

Is this even possible? Can a Carbon LP stake their Carbon BNT NFT in governance similar to how vBNT is staked in governance and receive voting power on snapshot?

I support this idea as some Bancorians will have BNT strategies on Carbon and they might also want to participate in governance.

1 Like
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?

  1. The DAO can buy back vBNT with BNT using the v3 vbnt-bnt pool at the price of the pool
  2. The DAO can buy back vBNT with BNT at a set ratio instead of the price of the pool

I don’t see a difference besides the ratio and they appear to me as vBNT buyback.