Votingautomaton.eth

Vote Delegation
100

Proposal to Whitelist Smart MFG (MFG) with 50,000 BNT trading liquidity limit

Smart MFG is a diverse project. The project marries NFTs with digital design and modelling, manufacturing, hardware and supply chain tokenization, and their website has an active NFT marketplace with content curated from a handful of early access creators. There is a lot here, spanning the full spectrum of hard utilitarian NFT philosophy, to collectible artwork and gaming aspects of the technology. The main MFG Twitter account has acknowledged the proposal is live. Moreover, the MFG token has been part of the Bancor ecosystem since 2018.

The role of the MFG (ERC20) token is not entirely clear. The text in the proposal is taken verbatim from the website, which is unfortunately not very helpful:

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  1. Incentives. The MFG token will be used to incentivize new businesses to adopt their on-chain supply chain solution, and to incentivize users to provide liquidity with it.
  2. NFT marketplace. I would have thought this implied that the MFG token is the default currency of their NFT purchases, but this is apparently not the case - an NFT called " Galactic phantom" is currently being auctioned for 1.25 ETH (i.e. not MFG).
  3. The Vague Stuff. The supply chain tokenization is underscored with “NFT” in parentheses, suggesting this is not related to the MFG token. Supply Chain DeFi is mentioned, but it is not clear how the MFG token is part of this vision, or why it is necessary. The payments part is fine, but almost all ERC20 assets can fulfill that need.

Nothing here is too concerning given the requested BNT funding. However, before a trading liquidity increase is considered, there should probably a discussion in a public forum to discuss the MFG token and its purpose. The MFG liquidity mining campaign on Uniswap is also ending imminently:

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The liquidity on Uni v3 may not be so sticky after the rewards period has ended; if there are liquidity providers who remain bullish on the MFG token after the period completes, it may not be too difficult to encourage them to grow the pool on Bancor with IL protection. Further, I would be interested to know if the project founders are interested in supporting their community with external IL protection on Bancor 3, and/or an auto-compounding rewards program over a longer period of time.

On balance, the MFG token is a reasonable whitelisting option. The distribution is better than par, the token has a long history, the team and project are high quality. This strikes me as a potential collaboration that the Bancor DAO would be excited to support. When asked about staking treasury assets, the author of the proposal replied:

The Automaton will vote FOR the whitelisting status of MFG.