# Proposal: Disable BNT withdrawal **URL:** \ **Category:** Deprecated Proposals (NOT SUBMITTED)\ **Created:** [July 4, 2022, 1:06pm UTC](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744 "2022-07-04T13:06:44Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![abduraman](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/abduraman/32/2508_2.png) [@abduraman](https://gov.bancor.network/u/abduraman)\ **Post date:** [July 4, 2022, 1:06pm UTC](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744/1 "2022-07-04T13:06:45Z")
BNT withdrawals must be disabled until ILP is reactivated again or all remaining TKN providers become whole. So this will decrease the deficit for TKN holders and get a better ratio at the withdrawal. BNT holders have disabled ILP so they must take the responsibility for their decisions at firsthand. ---
**Author:** ![glenn](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/glenn/32/1720_2.png) [@glenn](https://gov.bancor.network/u/glenn)\ **Post date:** [July 5, 2022, 4:59am UTC](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744/2 "2022-07-05T04:59:06Z")
> [@abduraman](#): > > BNT withdrawals must be disabled until ILP is reactivated again or all remaining TKN providers become whole. Per [BIP21](https://gov.bancor.network/t/bip21-dao-multisig-intervention-policy/3504), which passed: > 1. The DAO isn’t allowed to intervene with the withdrawal of funds, save for the adjustments to the protection mechanism. What’s the reasoning for disabling withdrawals on the BNT side specifically? How will this decrease the deficit for TKN holders? I don’t think a good enough case has been made on this proposal, let alone for it to be voted on by $vBNT holders. ---
**Author:** ![eldude](https://avatars.discourse-cdn.com/v4/letter/e/c6cbf5/32.png) [@eldude](https://gov.bancor.network/u/eldude)\ **Post date:** [July 5, 2022, 5:17am UTC](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744/3 "2022-07-05T05:17:01Z")
How would this reduce the deficit? Seems like it might after have the opposite effect. ---
**Author:** ![abduraman](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/abduraman/32/2508_2.png) [@abduraman](https://gov.bancor.network/u/abduraman)\ **Post date:** [July 5, 2022, 9:16am UTC](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744/4 "2022-07-05T09:16:27Z")
> [@glenn](#): > > What’s the reasoning for disabling withdrawals on the BNT side specifically? > [@eldude](#): > > How would this reduce the deficit? By decreasing the dump on BNT. Currently, as I observe, the haircut formula is a function of the initial liquidity of LP \* (1 - TKN/BNT price \* TKN deficit ratio). So the haircut ratio usually does not decrease for the people who have not withdrawn their liquidity yet since BNT price against coins (especially ETH). Let me go through my case. I have 19.04 ETH liquidity and if I had withdrawn it on the first day (3-4 days ago) when the withdrawal was enabled, I would receive 11.1 ETH. Then some people accepted the haircut and withdrew their liquidity. So normally this causes the deficit ratio to decrease and I could have withdrawn more than 11.1 ETH. However, because of the dump on BNT/ETH pair, my haircut has increased and I can withdraw only 10.85 ETH now. Am I wrong? ---
**Author:** ![eldude](https://avatars.discourse-cdn.com/v4/letter/e/c6cbf5/32.png) [@eldude](https://gov.bancor.network/u/eldude)\ **Post date:** [July 5, 2022, 10:00am UTC](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744/5 "2022-07-05T10:00:14Z")
I think you are wrong. This proposal would lead BNT LPs to unstake and lead to the opposite of your goal IMHO. ---
**Author:** ![abduraman](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/abduraman/32/2508_2.png) [@abduraman](https://gov.bancor.network/u/abduraman)\ **Post date:** [July 5, 2022, 10:21am UTC](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744/6 "2022-07-05T10:21:12Z")
> [@eldude](#): > > This proposal would lead BNT LPs to unstake and lead to the opposite of your goal IMHO. I don’t agree since they cannot withdraw. However, let’s assume that you are correct. Then, the formula can be changed and the price can be excluded from the formula instead of disabling withdrawals. Anyway, if neither of both options can be applied, waiting will be meaningless. Even if somebody waits for some time, she will face probably more haircut. When people grasp this fact well, they will withdraw their liquidity immediately. Currently, many people think that if they wait for more time, they will face less haircut, which is wrong acc. to the the current trend since Bancor has lost its credibility and BNT will be dumped day-by-day. ---
**Author:** ![abduraman](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/abduraman/32/2508_2.png) [@abduraman](https://gov.bancor.network/u/abduraman)\ **Post date:** [July 5, 2022, 9:59pm UTC](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744/7 "2022-07-05T21:59:22Z")
> [@abduraman](#): > > I can withdraw only 10.85 ETH now. It is 10.76 ETH now since BNT/ETH has been dumped. **To devs:** If you were me, what would you do? “accept %43 lose and withdraw tokens immediately?” or “wait and lose more than %43?” ---
**Author:** ![TheOneJM](https://avatars.discourse-cdn.com/v4/letter/t/c89c15/32.png) [@TheOneJM](https://gov.bancor.network/u/TheOneJM)\ **Post date:** [July 5, 2022, 10:47pm UTC](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744/8 "2022-07-05T22:47:42Z")
There’s a surplus of BNT so BNT LPs will get 100% of their stacks back. The DAO already voted to get rid of the withdrawal window and withdraw fee, so BNT LPs can withdraw that BNT immediately. It takes time for a vote to pass. This vote will likely create a run of BNT LPs withdrawing and selling, making your deficit worse. I do not support this measure and think it will put you in a worse spot. ---
**Author:** ![eldude](https://avatars.discourse-cdn.com/v4/letter/e/c6cbf5/32.png) [@eldude](https://gov.bancor.network/u/eldude)\ **Post date:** [July 6, 2022, 12:08pm UTC](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744/9 "2022-07-06T12:08:59Z")
I think my proposal would better serve your goals: > [@Discussion: Stop Burning vBNT - burn BNT](https://gov.bancor.network/t/stop-burning-vbnt-burn-bnt/3746): > > Okay, I might not be the biggest brain around here, but I check the charts as much as anyone. This is the 7 day chart for vBNT This bump seems to be when the vortex went to 40% on V2.1 (expect to move to 70% than 100% soon) If this is how the market responds, why not burn BNT instead of vBNT? Seems like it would reduce the deficit FAST ---
**Author:** ![abduraman](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/abduraman/32/2508_2.png) [@abduraman](https://gov.bancor.network/u/abduraman)\ **Post date:** [July 6, 2022, 12:38pm UTC](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744/10 "2022-07-06T12:38:13Z")
At least more reasonable than silence. ~20 days passed. ---
**Author:** ![glenn](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/glenn/32/1720_2.png) [@glenn](https://gov.bancor.network/u/glenn)\ **Post date:** [July 6, 2022, 1:15pm UTC](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744/11 "2022-07-06T13:15:08Z")
> [@abduraman](#): > > Anyway, if neither of both options can be applied, waiting will be meaningless. Even if somebody waits for some time, she will face probably more haircut. When people grasp this fact well, they will withdraw their liquidity immediately. Currently, many people think that if they wait for more time, they will face less haircut, which is wrong acc. to the the current trend since Bancor has lost its credibility and BNT will be dumped day-by-day. I don’t agree with this statement. We still don’t know what the actual recovery plan is going to entail and it might be premature to dismiss it. There have been other projects that have come back from way worse and the way I see it, Bancor has been building since 2017 and will be able to rebuild and get the trust back of their users and community (yes, this will take time). The Bancor team is working harder than ever to restore the protocol ATM and I do have confidence that we will come out of this. This is my opinion ofc and everyone is entitled to their own. ---
**Author:** ![abduraman](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/abduraman/32/2508_2.png) [@abduraman](https://gov.bancor.network/u/abduraman)\ **Post date:** [July 7, 2022, 2:02pm UTC](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744/12 "2022-07-07T14:02:08Z")
Withdrawable amount: 11.1 → 10.67. When zero? 😂 ---
**Author:** ![glenn](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/glenn/32/1720_2.png) [@glenn](https://gov.bancor.network/u/glenn)\ **Post date:** [July 7, 2022, 2:12pm UTC](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744/13 "2022-07-07T14:12:17Z")
If you are a $vBNT holder, feel free to create a proposal in snapshot: [https://vote.bancor.network/#/create/1](https://vote.bancor.network/#/create/1) 25K $vBNT is the requirement to prevent spamming the Bancor DAO. ---
**Author:** ![abduraman](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/abduraman/32/2508_2.png) [@abduraman](https://gov.bancor.network/u/abduraman)\ **Post date:** [July 7, 2022, 2:50pm UTC](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744/14 "2022-07-07T14:50:15Z")
I wish I had. I have 19.04 ETH frozen by Bancor 😡 Isn’t it enough? ---
**Author:** ![glenn](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/glenn/32/1720_2.png) [@glenn](https://gov.bancor.network/u/glenn)\ **Post date:** [July 7, 2022, 2:57pm UTC](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744/15 "2022-07-07T14:57:26Z")
Frozen is the wrong term to use. Anyone can withdraw from the protocol at the moment ( has been this way since the emergency measures were put in place). Some pools are in deficit and LPs will realize a loss if they withdraw from those pools (obviously, it is a choice that everyone has to make if they decide to go forward with withdrawing). ---
**Author:** ![abduraman](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/abduraman/32/2508_2.png) [@abduraman](https://gov.bancor.network/u/abduraman)\ **Post date:** [July 7, 2022, 3:08pm UTC](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744/16 "2022-07-07T15:08:24Z")
Yes, frozen is the wrong term. The correct term would be “partially seized”. ---
**Author:** ![abduraman](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/abduraman/32/2508_2.png) [@abduraman](https://gov.bancor.network/u/abduraman)\ **Post date:** [July 8, 2022, 1:31am UTC](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744/17 "2022-07-08T01:31:12Z")
> [@abduraman](#): > > Withdrawable amount: 11.1 → 10.67. When zero? 😂 Update: 10.58 of 19.04 ETH ---
**Author:** ![abduraman](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/abduraman/32/2508_2.png) [@abduraman](https://gov.bancor.network/u/abduraman)\ **Post date:** [July 8, 2022, 11:56am UTC](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744/18 "2022-07-08T11:56:19Z")
While we as TKN LPs wait for the deficit to be closed, BNT LPs withdraw their BNTs and dump BNT. Bancor makes a wealth transfer from TKN LPs to BNT LPs. In other words, the team gives our money to some others without our permission and all TKN LPs just watch this robbery. ---
**Author:** ![glenn](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/glenn/32/1720_2.png) [@glenn](https://gov.bancor.network/u/glenn)\ **Post date:** [July 8, 2022, 3:16pm UTC](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744/19 "2022-07-08T15:16:13Z")
> [@abduraman](#): > > In other words, the team gives our money to some others without our permission and all TKN LPs just watch this robbery. The Bancor protocol operates using a constant product market maker model. Tokens are paired with BNT and made available for trading via the bonding curve. There is no team that is actively selling or buying any of the tokens in the Bancor protocol and neither is the protocol itself. Swaps that are occurring on Bancor are from outside arbitrage or regular individuals that are buying/selling tokens through Bancor and prices are determined using x\*y=k. Any pool rebalancing that is occurring is from outside traders. ---
**Author:** ![abduraman](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/abduraman/32/2508_2.png) [@abduraman](https://gov.bancor.network/u/abduraman)\ **Post date:** [July 8, 2022, 3:48pm UTC](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744/20 "2022-07-08T15:48:15Z")
> [@glenn](#): > > The Bancor protocol operates using a constant product market maker model. Tokens are paired with BNT and made available for trading via the bonding curve. There is no team that is actively selling or buying any of the tokens in the Bancor protocol and neither is the protocol itself. Swaps that are occurring on Bancor are from outside arbitrage or regular individuals that are buying/selling tokens through Bancor and prices are determined using x\*y=k. Any pool rebalancing that is occurring is from outside traders. Please don’t behave as if you are ignorant. You know what I mean. Don’t explain what AMM is to me. Just don’t do that and be honest. [Next page](https://gov.bancor.network/t/proposal-disable-bnt-withdrawal/3744.md?page=2)