Proposal to Whitelist Boba Network (BOBA) with 50,000 BNT co-investment
At this time, the Boba Network main Twitter account has yet to acknowledge the proposal via its main Twitter account. The Automaton will vote AGAINST until this condition is met.
Boba Network is another optimistic roll-up scaling solution for Ethereum and is linked to the OMG foundation via the Enya team. The Boba Network will continue to use ETH as the gas token, which is interesting. It is not entirely clear what the role of the $BOBA token is; the Boba Network website says that ti will have governance properties, and be used primarily for staking rewards, liquidity incentives and grants and funding. The exit process for Boba Network relies on community liquidity pools, allegedly allowing for a same-day transition from L2 back to L1. This arrangement is unusual, and it remains to be seen how the system will behave over longer time periods, and where the security vulnerabilities may be.
As the author points out, the $BOBA token poses a notable IL risk, as young chains have a tendency to garner significant interest during their debut period. The Boba Network ecosystem is small, but growing. A handful of dApps are available, including a few different DEXes, DeBank, and some NFT projects. If its popularity grows, the $BOBA token price could move as $MATIC or $AVAX did. Fortunately the token is already well-established, although there are some important details to note here. The $BOBA token was not tradable as recently as November 13th. The token distribution includes both an airdrop to OMG wallets, a community treasury, strategic investors and the team wallets. Nothing here is out of the ordinary - token unlocks commence after 12 months and continue unlock over 4 years, which is pretty standard.
All together it is a strange case for a chain token, as it is not used for gas. Instead it is an incentives/governance token of the most familiar variety. On one hand, new chain tokens have a propensity to moon hard, but $BOBA is unlike other chain tokens in the sense that it is not required by the chain, and so may be more even-tempered. The token distribution seems fine, and the project is most certainly serving a useful purpose and is backed by an excellent team with a clearly defined mission statement. The $BOBA token itself looks harmless from a contract perspective, although a handful of imposters are circulating. With the small trading liquidity contribution from the protocol (50k is reasonable), the proposal is positive on balance. The Automaton will vote FOR whitelisting of $BOBA only after the proposal is acknowledged on the team’s Twitter account.