Proposal: Use of POL Proceeds
I propose to use the gathered POL proceeds as of the time of this post (~$2,894,093.11) to do the following:
Step 1: Close the following four pools in the following order (in the event POL funds are insufficient to close all four pools):
A. LINK (deficit ~30.7% as of time of this post based on last update to dashboard in an amount of -$2,985,000)
B. VBNT (deficit ~ 8% as of time of this post based on last update to dashboard and in an amount of -$58,850)
C. WOO (deficit ~20.3% as of time of this post based on last update to dashboard and in an amount of -$182,782)
D. CHZ (deficit ~13.9% as of time of this post based on last update to dashboard and in an amount of $1,877)
The LINK pool is being prioritized because of among TKNS in its size group (ETH, WBTC, LINK), it has the least deficit percentage. ETH has a 57.6% deficit and WBTC has a 56.8% deficit.
Closing pools should be our greatest priority because this would significantly reduce the amount of total BNT supply by burning the protocol owned BNT on the other side while also preventing risk of the deficit amount associated with each of these 4 pools from growing, which offsets a considerable amount of risk.
At the time of writing this proposal, LINK now has a 30% deficit, up from 24.9% only 24 hours ago. This is because LINK had a 20% price movement over night on 10/21, and if this pool had been closed before then then the deficit amount would not have increased. It may be that by the time this proposal is implemented, the deficit pool for LINK will have reduced, thus allowing pools 2-4 to also be closed and for this to be solely a cautionary tale.
Closing pools is also a far more efficient way at burning BNT than simply buying BNT. If we close the LINK pool, as an example, we would be able to burn 11,400,000 million BNT from this pool alone.
If we were to instead spend the gathered POL funds on buying BNT, we would only be able to buy 5,100,000 BNT.
As a result, we can burn much more BNT by targeting pools rather than buying and burning BNT and this makes much more sense as a result.
Step 2: Use any remaining POL funds to be generally dispersed amongst all pools (in the event POL funds remain after closing the 4 pools above)
As stated in the title, any remaining POL funds would be used on a pool neutral basis.
How will POL be sold and these pools be closed? That I will leave to the devs, the only thing that’s important is that it happens safe manner.
We believe that this proposal is in line with our DAO’s vision and values. By closing these four pools, we can address the deficit in a targeted approach.
We hope that this proposal will receive your support and approval. Thank you for your attention and consideration
Use POL funds in the order described in Steps 1 and 2 for the purpose of closing the LINK, VBNT, WOO and CHZ pools in this order and to the extent possible. This would be followed by a general pool approach.