Proposal: Remove Primordial Pool Rewards instead of reallocating

[tenzent]

@Funky

why cant we have a LM program that guarantees a certain APR? lets say the target is 5%, so if APR from fees is 3,1% the LM will fill the missing 1.9% in BNT

The rough rate we are looking at with auto-compounding turned on for BNT is 10%~

@thedavidmeister

the LM program simply borrows against the future, so the soon-to-be-live release and subsequent (hopefully more frequent!) releases need to pay for themselves AND ADDITIONALLY pay down the debt incurred during the lifespan of LM during v2.1

@thedavidmeister

i understand that testing is required

my concern is that we aren’t taking the same measured approach to tokenomics changes that we do to code changes

i disagree that tokenomics is a lever you can just pull at will, if you get a reputation for “rugging rewards” then the lever becomes much less effective each time you pull it

Maybe we can get around this in a happy medium by instead of minting 980K BNT we shift them from Auto Compounding Rewards so that we’re left with 29M BNT Instead. That way we are also staying true to our original BNT Rewards budget. Tokenomics proposals definitely should be put under a bit more scrutiny perhaps we should have a longer waiting period on BIPs.

Furthermore I think we can also reach some sort of less inflationary but just as impactful amount of rewards for token LPs. Out of the 980K BNT Which we could deduct from the auto-compounding mechanism to still be net neutral we could allocate the same amount of rewards as before just over a one month period after which the Bancor Network I assume should be fully operational.

@glenn

Just adding some info about how much $BNT these tokens will be receiving over the course of the 6 months if the DAO does not do anything:

Token	Month 1	Month 2	Month 3	Month 4	Month 5	Month 6	Total
ETH	100000	80000	60000	50000	40000	30000	360000
WBTC	35000	25000	20000	18000	16000	10000	124000
LINK	35000	25000	20000	18000	16000	10000	124000
USDC	35000	25000	20000	18000	16000	10000	124000
USDT	35000	25000	20000	18000	16000	10000	124000
DAI	35000	25000	20000	18000	16000	10000	124000
							980000

If we honor the first month of LM using the proposed to BNT We’re left with 740,000 BNT for BNT Stakers and 240,000 to Token LPs. Personally I think we could also remove Stables from the list. This would also stay more or less within the 75:25 Split mentioned in BIP-18.