At current vBNT liquidity levels, are we ever going to be able to burn large sums with <5% price impact? Seems unlikely to me.
When we last burnt 1m BNT back in September 2022, there was no discernable impact on price (in either the short- or medium-term). Repeating the trick for a second time while expecting a different response just seems like folly to me. It’s time to try something different - and if it has the additional benefit of educating the market (and BNT holders - many of whom seem to fundamentally misunderstand the Vortex, the Telegram suggests) about vBNT, so much the better.
The bnt that is accrued wasn’t purchased, its just a pool of trading fees. So there’s no price impact when collecting or burning them. Whereas, any vbnt that is burnt needs to be purchased using the bnt that was earned through trading fees. So there will always be a price impact when this happens.
For those of you that follow me on twitter you would have seen my tweets about the circulating supply. The circulating supply of BNT is the ONLY thing that anyone external to Bancor cares about when they are looking at the BNT tokenomics.
Bancorians must therefore do everything in their power to keep decreasing the circulating supply as much as possible and every BNT that can be removed from the market matters
I can not support this proposal and prefer that the BNT is burned to decrease the circulating supply further. We need to keep tokenomics simple and stupid for everyone to understand and vBNT buying and burning is NOT it.
At this time, the contract only supports utilizing the full amount of the fees, so this will require a code change to add support for it which IMO isn’t really worth it, as it doesn’t add a tremendous benefit to the current process.
I’m in support for simplification.
Moved to archive as code not available currently to support partial burn. Future props to start phase out of vBNT entirely @glenn can assist with moving to Deprecated?
