Discussion: DAO Finances & Stakes

[glenn]

Just quoting myself from another thread (DEPRECATED) (BIP) Reallocate 50% of Vortex Burner vBNT for Bancor Brand Awareness Campaigns - #14 by glenn with a similar in nature idea.

@glenn

If you want to collect fees for brand awareness purpose (I still think that it is aiming small, better idea below) then do it outside of the vortex. Leave the vortex as is and bring a proposal to the DAO that collects a small percentage of all trading fees for what you intend to do. Projections of how much will be collected at different percentages can be based on total platform fees collected in previous weeks/months.

2. The vBNT that would normally get collected by this proposal is highly variable in price due to multiple vortex factors (people leveraging, burn rate, BNT price, etc…). When you collect the vBNT and by the time that you decide to use it to fund a brand awareness campaign, the vBNT to BNT rate could have gone against or in your favor for when you swap (I don’t think anyone will take payment in vBNT) to BNT or to TKN (some might not accept payment in BNT so you will have to swap to TKN). This means that you are paying fees again to go back from vBNT to BNT or to TKN. I don’t think this makes much sense since you could have collected the fees in their original state (either BNT or TKN) and put them somewhere else until you are ready to distribute them. Ultimately, you are not wasting a portion of the funds that you collect by doing a bunch of swaps that you will have to later undo.

A cool thing about collecting swap fees in their original state is that the fund that you are building will naturally be diversified due to the nature of all the tokens that we support. This is better than having a fund that’s solely composed of one asset (vBNT). This also gives us a large advantage over other communities which have a similar problem of having their community funds solely be composed by their governance token.