Since posting this, a couple more alternatives have been proposed beyond just burning BNT or burning vBNT.
@OverAnalyser has proposed distributing the accrued BNT to BNT stakers, and this driving demand for BNT. I am a bit concerned that this could be viewed as enriching BNT stakers at a time when TKN LPs are in the most “pain”, and could potentially backfire and further harm BNT market sentiment.
Another alternative that has been discussed is continuing to let the BNT accrue in the V3 fee wallet, where it is effectively out of circulating supply, and eventually having this BNT become available as some kind of Bancor DAO treasury. The DAO could, for example, use this BNT to do a token swap with another DAO, use it to fund DAO-issued grants, or for some other future utility that becomes clearer once Bancor’s overall roadmap materializes. Determining the feasibility of this final option (DAO treasury) requires additional legal research, which is currently underway, and will be shared once available.
So current proposed options are:
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Option 1: Burn vBNT via Vortex (requiring market sale of BNT for vBNT)
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Option 2: Burn BNT directly
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Option 3: Stake the BNT and use bnBNT for LM (@overanalyser proposal)
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Option 4: Continue accruing BNT and keep it locked in the V3 fee wallet for some future utility (eg, token swap, DAO treasury etc), pending further discussion and legal research
Some have also expressed the view that burning BNT or burning vBNT will have no material impact on market sentiment and therefore no meaningful effect on the deficit. In their view, we will be effectively wasting the accrued BNT fees, while in the case of burning BNT directly, also harming Bancor’s visibility in Coingecko/CMC due to reducing the BNT market-cap rank.
With these ongoing discussions in mind, I have revised the “expected Snapshot date” above to “TBD”. If, however, someone feels strongly that a yes/no vote on burning BNT directly should be brought to Snapshot now, they are free to push the Snapshot proposal at any time, and vBNT holders can decide the outcome.
Proposed next steps:
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continue discussions on the above options
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continue legal research on “Option 4” and report back with findings