Proposal to automatically allocate 2% of LP fees to marketing

In a market of fierce competition, which will grow even stronger, the need to coordinate professional marketing efforts, globally, is clear. Being a LP is nothing short of running a business. A business needs marketing.

Numbers

Roughly $150k was the 24hr fee volume on March 1st 6pm UTC. This would equate to $3k per day / $90 k per month / $1 million a year right now.

For this budget

  • a team of marketing specialists can be put together to market Bancor’s DEX
  • investments into the typical online marketing strategies can be funded
  • proper ad planning and analysis performed
  • additional creative campaigns invented
  • ad-games created

Legal thoughts

The Bancor Foundation could setup a legal entity that receives these funds daily into a wallet. I assume, due to marketing being placed in the real world, a real world legal entity is needed, rather than just a DAO. A DAO could however control the decisions made in such entity.

  • best form of entity to be researched as per tax laws.
  • entity’s statues to define:
    — DAO controlled
    — profits can only be reinvested into the entity itself
    — cap on team’s wages

Looking forward to the feedback

PAV

4 Likes

It’s an interesting proposal.
I think we need to develop it a little before it goes on-chain. But there is a version of this that I would be very happy to support.

yes, my post is certainly a first draft and I am happy to see your response @mbr . I am also more than happy to start developing this idea with the community, as well as the Bancor Team.

1 Like

Sit tight - we have a lot going on right now, but I think something like this could be made a priority soon. Thanks for contributing to the protocol!

we have a lot going on right now

:point_up: I can imagine. Meanwhile let me add a few thoughts.

Clearly the attraction of LPs has been a priority and the rewards idea made it happen. Now, with this momentum, it is a good idea to double down on building up the foundation of the DEX at the same time, which will always be measured by its trading volume. In the mid to long term, trading volume must increase manyfold, so that the income from fees becomes the better incentive for LPs, be at least equal or larger than the income from rewards.

Also, as seen with the OCEAN post, the need for marketing the DEX has become very obvious. I was glad to see that post.

Marketing is not done over night. Is a process and successful campaigns have to be crafted with time. The earlier this process starts, the earlier a team can be developed, the earlier marketing analytics data collected and utilized, the better.

I strongly feel that having much of this in place by end of 2021, would give incredible advantage to Bancor. An advantage that manifests itself not just in likely increased swapping volume, but also in knowledge gained.

Last but not least. What is nice about the proposed concept is, that it is it’s own track, dealing only with one specific aspect of Bancor: swapping on Bancor’s DEX. It can be stopped at any point, if results are unsatisfying, without effecting any of Bancor’s activities and vision. Not to mention, repurposed for - say - an incubator fund… but that is another story.

1 Like

We are in the process of designing such a program.

Just adding another example for where a dedicated marketing team might help… As of the time of writing, the wNXM pool is neither listed as a market on Coingecko or Coinmarketcap. Or should it not be?

1 Like

We have reqached out to coingecko on so many occaisions. We have updated our APIs, and the coingecko team know what to do. They just don’t do it.

@mbr good to know you’re on it. Go team!

1 Like

for those readers scrolling down fast, please read and comment on the initial post … thank you!

1 Like

What’s the % of other dexs ie.uniswap on marketing?

1 Like

0%
Uniswap doesn’t collect a network fee at present; however, it is backed by a fairly well-endowed VC firm.

Thing with marketing, it’s hard to measure returns.

Shouldn’t we incentivise innovation from within the dev team instead, build and they would come? (Organic)

People already know bancor as the first AMM, had a big ICO ect. People will write about if it is good.

1 Like

I’m not sure marketing the way you define it is necessary for some of the reasons above: Bancor gets a lot of press already, has a long history in the DeFi space, etc. A marketing budget for dev incentives and incentives/rebates for traders to use the LPs would make sense to me.

1 Like

Yea agreed, dev incentives and trader incentives would be great though I think the former warrants more priority if we don’t want to get left behind on innovation. (I think we are doing great, but if there’s any chance to accelerate innovation, we should also take it)

2 Likes

I disagree with the statement that marketing, also speaking of classic marketing, is not necessary. Still, the answer lies, as always, in both. It is not a question of doing marketing OR dev/trader/lp intensives. It’s AND.

1 Like

The idea is to not spread ourselves too thin without incentive fire power behind it.

If the key people are making marketing decision instead of dev(where they are good at), the use of their time is inefficient.

2 Likes