Currently Bancor is in a deficit that sometimes improves, but usually worsens. The way which we have chosen to repair the deficit is via the fees which Carbon will generate in the future, along with basically 100% of all of the fees earned from Bancor being placed towards buying and burning BNT.
I am of the mindset that leaving Bancor open so that we can continually earn fees to buy and burn BNT is in fact making our situation worse. The IL being received from bancors major pools wBTC/eth is greatly outpacing the funds being spent towards buying and burning BNT.
These are the wBTC & eth / BNT charts on a weekly basis. As you will see, they are both hemorrhaging and this is a steep uphill battle on both fronts.
Our goal here is not to resurrect Bancor v3 or v2. It is to have the successful release of Carbon, and use all of the fees earned to repay Bancors debt. Allowing the deficit to continue to increase seems counter productive. Another person here on governance suggested this before, and perhaps, this is is an idea worth further conversations⌠Repair the deficit by replenishing the lost TKNs rather than buying and burning. Bancor has whales already pushing down the price as well as trapped BNT investors waiting to exit. Theres a lot of overhead resistance.
Once the deficit has been repaired, then sure, re-release the AMM, but for the time being, if the deficits are only worsening, then why are we making this harder on ourselves?
My goal here is to have a discussion on moving forward, and rather than clinging on to bancors past, go full force and embrace Carbons future. Remove all things weighing bancor down. Perhaps this conversation can lead to a complete overhaul of bancor and possibly even its token. Carbon has the potential to be the breath of fresh air that the defi space needs, and i am of the opinion that the BNT token itself needs to be more than just a governance token. Look at many of the major defi coins, youâll see desirable attributes such as fee sharing etc. â ideas like this 1) gives incentives for people to buy and hold/stake it 2) gets people talking and building communities around the project if there are referral programs etc
Thoughts?