Proposal: Implement Burn Day (one day with Vortex Burner at 100%)

Proposal: Implement Burn Day Event

For this proposal to pass, it requires 35% quorum and 66.7% supermajority.

This proposal is expected to appear on Snapshot for voting on TBD. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

TLDR

  • Change the Vortex Burner rate to 100% for a period of 24 hours.
  • This event shall be called “Burn Day”.
  • This event’s goal is to bring awareness to Bancor’s Vortex. The number of vBNT burnt in that day is a number that we can advertise and use for Marketing.

Rationale

  • This event is mainly for Marketing purposes. “Bancor is having a Burn day” sounds a lot like what other protocols do when they buyback some of their tokens to burn them and advertise it. We can advertise the number of vBNT burnt in that day and equivalent BNT value locked forever in the protocol.
  • Changing the burn to 100% for one day will cost the protocol almost nothing (just the gas costs of adjusting the rate), and the impact of the vBNT burnt in that day won’t be significant enough that we should worry about it.
  • This is an experiment to bring awareness to Bancor’s innovative Vortex solution. However, the DAO can choose to reimplement this day, or make it a recurring event (once a week, fortnight, month, …).
  • It’s ultimately a fun event that we can meme about to raise awareness on Social Media. It could be coupled with meme competitions in the future if that DAO chooses to expand on this day.
  • We’ve had days with roughly 10k vBNT burnt recently. In this case, there would be around 66.6k vBNT burnt at 100%, or 136k BNT locked forever in the platform at 0.49 ratio. That’s $451k locked forever in the platform.
3 Likes

Happy to hear everyone’s thoughts! This is a Bancor marketing idea so brainstorming is essential.

One member of our community pointed out that this day could happen at the same time that the amount of vBNT burnt in the protocol reaches 2M as to celebrate the milestone! Sounds like a great idea to me.

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would like to see the timing of this occur near to the v3 launch. not sure how it works during the migration window, so might want to consider that dimension also.

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Makes sense, near the v3 launch probably makes more sense as we’ll have one hop trades, so more volume comes our way then.

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This is a super-interesting idea, and probably not without controversy.

I am in two minds about it. On one hand, I think it could be used as part of a marketing effort to educate the rest of the DeFi populous about how the Vortex works, how insurance premiums are paid on Bancor, and the general tokenomics principles behind the project. Moreover, we can use the event to draw attention to the fact that the Vortex burner contract is usable by anyone. In sum I feel as an awareness-raising campaign, it could be highly valuable - provided it is executed carefully and with a premeditated marketing plan behind it, including perhaps an interview or podcast recording on that day (or made available on that day).

On this point the author and I agree, and I think this alone is strength enough to give the proposal serious consideration. Ultimately the economic consequences are relatively benign, but non-zero. It is difficult to predict how users will react. For example, will it drive speculation on vBNT? If so, does that have ramifications for governance? Will the event be perceived negatively? The attitude and reaction to such a stunt could be much more dramatic than the actual economic impact, which adds to the preparedness requirement with regard to how we communicate what is happening.

There is a significant upside in terms of instigating some useful conversations; and on the flip side, it would be easy to misconstrue the nature of it.

This probably should be discussed on the community call before progressing to a vote. The choice of the specific day for burning could be a significant factor, and something of a celebration of the project that introduces some talking points central to our brand. For example, it could commemorate the day when the first liquidity pool was established by Bancor (helping to galvanize Bancor’s inventorship), or it could mark the birthday of John Maynard Keynes (June 5th), who introduced the macroeconomic ideas from which Bancor has received its namesake. These are all important points to discuss, and I think we should have a better plan established before taking this proposal to a formal vote.

But I like the idea a lot.

2 Likes

It is great for BNT holders at the expense of LPs (for one day).

My only real concern is that the marketing aspect would be limited to people who have at least heard of vBNT, so I’m not sure if this would attract anyone new to the ecosystem.

However, I’m not really opposed either.

Might be nice to on Dec 25th - as a gift.

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I am extremely disappointed by everyone who has commented on this proposal and didn’t comment about 4/20 on being the official burn day. :fire::fire::laughing:

On a serious note, I think having an official yearly vortex burn day as a marketing or awareness campaign would do wonders for the community. It doesn’t have to be tied to the same day every year and can potentially coincide with an IRL community gathering? Perhaps, it can be lined up with a conference where the community can attend and we can also hold a virtual event as well on the same day (plenty of platforms to do this in…think decentraland/sandbox/cryptovoxels) to include folks that might not be able to travel.

There are certainly plenty of ways that we can engage the community with such an event and I think a yearly burn day would be appreciated by the community. I support this proposal.

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We have a good number of community members attending ETHDenver at the end of february (myself included) which could work, im not sure if we’re presenting in any way but could be a nice lil boost.

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So we doing this on 4/20 or valentines day?

1 Like