This proposal is expected to appear on Snapshot for voting on 2021-10-10T12:00:00Z . Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.
EDEN - Eden Network - Reallocate LM rewards on EDEN pool to 100% BNT - 0% EDEN
- Reallocate LM rewards on EDEN pool to 100% BNT - 0% EDEN
- Eden Network’s utility has fallen greatly since the proposal to enable LM Rewards
- Eden Network fails to consistently keep Bancor’s tenant slot, despite their promise to do so
- Eden Network’s effective hashrate has decreased from 53% to 36% in the 2 weeks since enabling LM Rewards
- Eden Network’s value proposition is now a net negative given the recent release of free and better alternatives to Eden Network’s private transaction RPC
- As such, we should protect BNT from unnecessary inflationary pressure
Eden Network’s effective hashrate has fallen from 53% to 36%, a 32% decrease.
This, in conjunction with Eden Network’s failure to keep BancorNetwork as a slot tenant decreases Bancor’s proportion of protected trades from ~10% to 4%.
The LM we are printing on the EDEN side is no longer worth a 4% service rate.
Eden Network fails to keep BancorNetwork as a slot tenant:
^BancorNetwork (Bancor: Swaps | 0x2f9ec37d6ccfff1cab21733bdadede11c823ccb0) is not there as of 12:41 PM EST October 7, with the most recent bid being over 2 days ago. Additionally, from the graph above, we see that Bancor Network was not a slot tenant until Sept 29, despite the vote for LM ending Sept 23.
Eden Network is failing to keep up their end of the deal.
Eden Network’s value proposition is now net negative given the recent release of free and better alternatives to Eden Network’s private transaction RPC
Flashbots released a free alternative to Eden Network, available to normal users in the form a private mempool RPC, and a developer API so that trades made thru the Bancor UI can automatically use the flashbots RPC. Flashbots has a 90% hashrate vs 36% hashrate of Eden, resulting in better protection and faster trades than Eden Network, for free.
Q & A:
We can’t reallocate Eden rewards percentages after the initial proposal, right?
Actually, we can. The Bancor DAO can act accordingly, at will, in order to protect the health of the protocol. The initial proposal for LM was assuming certain Eden Network metrics stay constant, and for Eden Network to keep up their end of deal. On the contrary, these metrics have decreased, Eden fails to keep Bancor as a slot tenant consistently, and free alternatives to Eden Network have been released for the same service. In light of the presented new information, it would do the Bancor community a disservice to continue the LM rewards on the EDEN side of the BNT-EDEN pool.
Why 100% BNT, instead of outright cancellation of LM?
As a wise man once said, “LM on BNT side is 1000% okay.”