I would like to tackle two problems:
- Lack of incentives to vote.
- Lack of community-governed development fund.
Taking inspiration from YFI I would suggest the following solution:
Set up a community pool that would incentivize users to behave in a certain way
- % of rewards would go towards participants in the voting process.
- You can stake vBNT but you do not get rewards unless you have voted for the last proposal (same as Kyber).
- % of rewards would be distributed via voting to developers and other relevant network participants that would be responsible for the curation of the Bancor Network.
There are two ways of fees collection:
- 0.5% of the exit fee - applied to the liquidity provided when leaving the pool. With 0.5% exit fee, most of the pools should breakeven after a week or two.
- 2% annual management fee - 2% of all the fees collected on the network annually would be gathered to the community pool and governed by the community in voting.
Exit fees will be applied to liquidity providers when leaving the pool by confiscating Pool Tokens he/she provides in order to withdraw their position on the Bancor Network.
For the sake of development simplification, the management fee will be applied the users in a similar way. When the liquidity provider is leaving the pool 2% of fees will be confiscated in form of Pool Tokens.
Pool Tokens will be liquidated, TKNs will be converted to BNT and send to the Community Pool and Governance Pool
Firstly, I would suggest voting on the 0.5% exit fee that would collect 50% to the Governance Pool to speed up the decision making process. Another 50% would be collected to the Community Pool. The % distribution can be change anytime based on the protocol’s current needs.
Secondly, after discovering the protocol needs, management fees.
Overall two BIPs.