# Proposal to Use POL to Reduce B3 Deficits **URL:** \ **Category:** DAO Archive (SUBMITTED)\ **Created:** [October 25, 2023, 7:40am UTC](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502 "2023-10-25T07:40:38Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![foxsteven](https://avatars.discourse-cdn.com/v4/letter/f/838e76/32.png) [@foxsteven](https://gov.bancor.network/u/foxsteven)\ **Post date:** [October 25, 2023, 7:40am UTC](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502/1 "2023-10-25T07:40:38Z")
Proposal to Use POL to Reduce B3 Deficits Expected on Snapshot on November 5th, 2023 # TL;DR - This proposal is following discussions in the DAO - [Consolidating recent proposals by @alphavalion](https://gov.bancor.network/t/consolidating-recent-proposals-by-alphavalion/4330/) - [Proposal: Efficient Utilization of POL Proceeds for Pool Closure and BNT Burning](https://gov.bancor.network/t/proposal-efficient-utilization-of-pol-proceeds-for-pool-closure-and-bnt-burning/4488) - Carbon POL has just under $3M of value at the time of writing - [Address: 0xD06146D2...DFc2bEf46 | Etherscan](https://etherscan.io/address/0xD06146D292F9651C1D7cf54A3162791DFc2bEf46#tokentxns) - Data for context: [https://dune.com/bancor/bancor3-surplus-deficit](https://dune.com/bancor/bancor3-surplus-deficit) # Four Competing Goals Being Discussed In Public Telegram Chats and Discourse We have about $3M of POL that many in the DAO would like to use. However, there has not yet been significant discussion as to what the goal is. Potential Goal 1: Reduce the overall B3 deficit. This discussion is [here](https://gov.bancor.network/t/proposal-use-protocol-owned-eth-to-buy-and-burn-bnt-from-the-markets/4491). Potential Goal 2: Reduce the supply of BNT by using the POL to target 4 specific pools. This discussion is [here](https://gov.bancor.network/t/proposal-efficient-utilization-of-pol-proceeds-for-pool-closure-and-bnt-burning/4488). Potential Goal 3: Bootstrap Carbon. This discussion is [here](https://gov.bancor.network/t/consolidating-recent-proposals-by-alphavalion/4330). Potential Goal 4: Save the ETH for a rainy day I’ve been very honest with my personal perspective. - I’m very much aligned with potential goal 1. - I understand the appeal of potential goal 2, but I personally prefer a solution that treats all LPs the same regardless of the TKN they LP with. - I understand the appeal of goal 3, but trying to manage an active strategy in a decentralized fashion via public functions will not be easy - and this comes with dev time. Also, we may not be able to respond quickly in the case that one of the TKNs held by the strategy has some issue - as our governance takes time. - Goal 4 is also interesting. Perhaps good things come to those who wait. # Reduce the Overall B3 Deficit with a Modified POL Contract: Related to Goal #1 - Overall Deficit Reduction (note: the original POL contract is outlined [here](https://gov.bancor.network/t/update-to-pol-migration-and-conversion-to-eth/4438)) - Create a public function anyone can call that will put 100 ETH up for sale. - 100 ETH is a DAO controlled parameter - The initial sell price should be set at two times the BNT/ETH rate on CG. - This is a DAO controlled parameter - At the time of writing, the rate is about 1 ETH to 3,000 BNT - Contract offers to sell ETH at initial sell price - For example, there are 100 ETH and initial sell per ETH is 6,000 BNT - Any user can send 600,000 BNT to acquire the ETH - The price of ETH drops as defined by an exponential decay formula with a 10 day half life. - Anyone can buy the ETH with BNT at any time. - These BNT are sent to the token contract - These parameters can be adjusted by the DAO - Once a trade ends and there are less than 10 ETH available for sale, the contract is topped up to 100 ETH. - The new initial sell price will be the price of the last ETH sold x 2 This system was presented with more detail and graphically [here](https://gov.bancor.network/t/proposal-use-protocol-owned-eth-to-buy-and-burn-bnt-from-the-markets/4491/25). Please note that numbers might not be the same. # FOR Use POL to Reduce B3 Deficits as outlined above # AGAINST Take no action ---
**Author:** ![lesigh](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/lesigh/32/2449_2.png) [@lesigh](https://gov.bancor.network/u/lesigh)\ **Post date:** [October 25, 2023, 7:52am UTC](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502/2 "2023-10-25T07:52:06Z")
I am personally a big fan of this proposal and plan on supporting it. ---
**Author:** ![Here2DeFi](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/here2defi/32/2514_2.png) [@Here2DeFi](https://gov.bancor.network/u/Here2DeFi)\ **Post date:** [October 25, 2023, 8:01am UTC](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502/3 "2023-10-25T08:01:22Z")
I support this plan. Reducing the deficit and treating all LPs fairly are two things I personally feel very strongly about and will vote in favor of. ---
**Author:** ![Jindo](https://avatars.discourse-cdn.com/v4/letter/j/c2a13f/32.png) [@Jindo](https://gov.bancor.network/u/Jindo)\ **Post date:** [October 25, 2023, 8:16am UTC](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502/4 "2023-10-25T08:16:50Z")
If proposal 1 passes, roughly how long will this take to put together? ( ballpark it ) ---
**Author:** ![mbr](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/mbr/32/3021_2.png) [@mbr](https://gov.bancor.network/u/mbr)\ **Post date:** [October 25, 2023, 8:59am UTC](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502/5 "2023-10-25T08:59:10Z")
Adding an illustrative example here, as an appendix to the scenario I described in a comment to [the alternative proposal](https://gov.bancor.network/t/proposal-use-protocol-owned-eth-to-buy-and-burn-bnt-from-the-markets/4491/25). Only major difference: `min ETH offer` is now 10 ETH, instead of 50 ETH (i.e. restart the auction after 90% depletion of the `auction ETH reserve`, instead of 50%). ![Picture1](https://europe1.discourse-cdn.com/flex013/uploads/bancordao/original/2X/9/96c565d461a4d2bcc6b417403436bb47c6792899.png) ![Picture2](https://europe1.discourse-cdn.com/flex013/uploads/bancordao/original/2X/b/b793e4e365ffee4114bee2d944131775715b7ede.png) ![Picture3](https://europe1.discourse-cdn.com/flex013/uploads/bancordao/original/2X/5/5875c6815e06048c1c7940ff231e50e0c20485bf.png) ![Picture4](https://europe1.discourse-cdn.com/flex013/uploads/bancordao/original/2X/2/230d73c9ae98cb89e41f3291aad6d49796ea55a5.png) ![Picture5](https://europe1.discourse-cdn.com/flex013/uploads/bancordao/original/2X/f/f17445f2cb9a9be831935c525b9010fcc3b5b5ca.png) ![Picture6](https://europe1.discourse-cdn.com/flex013/uploads/bancordao/original/2X/f/f722d0081a19ec0fe0e21d803a7dfd5b7c5c2eea.png) ![Picture7](https://europe1.discourse-cdn.com/flex013/uploads/bancordao/original/2X/1/1f54275bbbe128430f46edd9de4669e98ad202f2.png) ![Picture8](https://europe1.discourse-cdn.com/flex013/uploads/bancordao/original/2X/5/53e58f5c7ad0624914712910656763dee1ae9a91.png) ![Picture9](https://europe1.discourse-cdn.com/flex013/uploads/bancordao/original/2X/9/9d3b563c154585f83ac27de913bbf4e3d7fa55d0.png) ![Picture10](https://europe1.discourse-cdn.com/flex013/uploads/bancordao/original/2X/0/0e91a126e5e27f852fec89256763fd4c9b941e31.png) etc. ![Picture11](https://europe1.discourse-cdn.com/flex013/uploads/bancordao/original/2X/7/7385004118383ab3a6cdc9637dd69299e65db585.png) ![Picture12](https://europe1.discourse-cdn.com/flex013/uploads/bancordao/original/2X/5/5119b38beecd0311b37651b74595375abeb29958.png) ---
**Author:** ![Joop](https://avatars.discourse-cdn.com/v4/letter/j/a9a28c/32.png) [@Joop](https://gov.bancor.network/u/Joop)\ **Post date:** [October 25, 2023, 10:01am UTC](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502/6 "2023-10-25T10:01:05Z")
In favor. Is there a reason why we can’t put this up for a vote this Sunday 29th of October? ---
**Author:** ![foxsteven](https://avatars.discourse-cdn.com/v4/letter/f/838e76/32.png) [@foxsteven](https://gov.bancor.network/u/foxsteven)\ **Post date:** [October 25, 2023, 10:21am UTC](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502/7 "2023-10-25T10:21:14Z")
I prefer the DAO take time to evaluation this and Alpha’s proposal and then vote on them at the same time. ---
**Author:** ![PaperStreetCapital](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/paperstreetcapital/32/2551_2.png) [@PaperStreetCapital](https://gov.bancor.network/u/PaperStreetCapital)\ **Post date:** [October 25, 2023, 12:08pm UTC](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502/8 "2023-10-25T12:08:10Z")
Totally for this. And since this has to be a minimum of 20 characters: Good to mentally add on value captured by the Arb Bot during this whole process similar to the POL acquisition process. ---
**Author:** ![ImshermanentLoss](https://avatars.discourse-cdn.com/v4/letter/i/ed655f/32.png) [@ImshermanentLoss](https://gov.bancor.network/u/ImshermanentLoss)\ **Post date:** [October 25, 2023, 12:09pm UTC](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502/9 "2023-10-25T12:09:35Z")
Definitely support this much more than the other proposal; this could actually help alleviate the deficit, whereas the other only serves to maintain the POL ETH amount for as long as possible, at the expense of TKN LPs. ---
**Author:** ![Joop](https://avatars.discourse-cdn.com/v4/letter/j/a9a28c/32.png) [@Joop](https://gov.bancor.network/u/Joop)\ **Post date:** [November 5, 2023, 6:04am UTC](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502/10 "2023-11-05T06:04:38Z")
With this and Alphavillion’s proposal now going to a vote I’m wondering how long it would take before one of these can be implemented after voting closes Wednesday? Any dev that can give an estimate for both proposals? Cheers. ---
**Author:** ![Joop](https://avatars.discourse-cdn.com/v4/letter/j/a9a28c/32.png) [@Joop](https://gov.bancor.network/u/Joop)\ **Post date:** [November 8, 2023, 1:42am UTC](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502/11 "2023-11-08T01:42:39Z")
With the vote ending soon. Any dev that can answer this question? ---
**Author:** ![yudi](https://avatars.discourse-cdn.com/v4/letter/y/34f0e0/32.png) [@yudi](https://gov.bancor.network/u/yudi)\ **Post date:** [November 8, 2023, 8:41am UTC](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502/12 "2023-11-08T08:41:36Z")
Hey, Sorry, missed it - the implementation isn’t very complex, given that it’s relatively similar to the current POL contract implementation. I imagine any of these can go live within 2 weeks post vote end. ---
**Author:** ![Joop](https://avatars.discourse-cdn.com/v4/letter/j/a9a28c/32.png) [@Joop](https://gov.bancor.network/u/Joop)\ **Post date:** [November 8, 2023, 9:20am UTC](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502/13 "2023-11-08T09:20:32Z")
Thanks Yudi. I think a lot of us would be very happy to see this go live asap. Thanks ---
**Author:** ![umstah](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/umstah/32/2605_2.png) [@umstah](https://gov.bancor.network/u/umstah)\ **Post date:** [November 20, 2023, 3:58pm UTC](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502/14 "2023-11-20T15:58:48Z")
@yudi - just following up to see if we can get an update seeing as we are now about two weeks out. Thanks. ---
**Author:** ![yudi](https://avatars.discourse-cdn.com/v4/letter/y/34f0e0/32.png) [@yudi](https://gov.bancor.network/u/yudi)\ **Post date:** [November 20, 2023, 4:28pm UTC](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502/15 "2023-11-20T16:28:55Z")
Hey - development is done and it’s now under testing - I believe it requires about a week until it’s gonna be live. ---
**Author:** ![sneezejeeze](https://avatars.discourse-cdn.com/v4/letter/s/5f8ce5/32.png) [@sneezejeeze](https://gov.bancor.network/u/sneezejeeze)\ **Post date:** [November 20, 2023, 6:45pm UTC](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502/16 "2023-11-20T18:45:52Z")
During testing does the code get audited by anyone outside of Bancor? ---
**Author:** ![yudi](https://avatars.discourse-cdn.com/v4/letter/y/34f0e0/32.png) [@yudi](https://gov.bancor.network/u/yudi)\ **Post date:** [November 20, 2023, 7:03pm UTC](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502/17 "2023-11-20T19:03:53Z")
Not an official audit but we have one auditor outside bancor who’s reviewing the code. ---
**Author:** ![Joop](https://avatars.discourse-cdn.com/v4/letter/j/a9a28c/32.png) [@Joop](https://gov.bancor.network/u/Joop)\ **Post date:** [November 27, 2023, 11:09am UTC](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502/18 "2023-11-27T11:09:12Z")
It’s a week later. Any update @yudi? ---
**Author:** ![foxsteven](https://avatars.discourse-cdn.com/v4/letter/f/838e76/32.png) [@foxsteven](https://gov.bancor.network/u/foxsteven)\ **Post date:** [November 30, 2023, 7:51am UTC](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502/19 "2023-11-30T07:51:58Z")
Quick update. The contract and testing of the contract are now complete. Yesterday the following update was posted in Bancor devs ([Telegram: Contact @BancorDevelopers](https://t.me/BancorDevelopers)): ![image](https://europe1.discourse-cdn.com/flex013/uploads/bancordao/original/2X/1/14bd701ad0c03b70bfd392a32f18d3d2b7744e8f.png) Once people have had a chance to upgrade to the new bot and the contract changes are made, the process can start with full bot support. More details on the bot: [Major Update - handles upcoming changes to the Fast Lane smart contract by Lesigh-3100 · Pull Request #237 · bancorprotocol/fastlane-bot · GitHub](https://github.com/bancorprotocol/fastlane-bot/pull/237#issue-2016554440) ---
**Author:** ![VictimBurner](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/victimburner/32/937_2.png) [@VictimBurner](https://gov.bancor.network/u/VictimBurner)\ **Post date:** [December 6, 2023, 12:23am UTC](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502/20 "2023-12-06T00:23:17Z")
So, any update on this? [Next page](https://gov.bancor.network/t/proposal-to-use-pol-to-reduce-b3-deficits/4502.md?page=2)