Governance Proposal 23: Dev Wallet Optimization

Context/Background

The ApeSwap team of Core Contributors are proposing formal changes to how the 1 BANANA emitted per block that is currently allocated to the ApeSwap dev wallet are handled. As part of a greater analysis into how ApeSwap can be more efficient with our BANANA emissions and usage, the DAO has identified an opportunity to update and codify through governance an improved way to use this 1 BANANA per block.

Currently, of the 1 BANANA emitted per block that is allocated to ApeSwap dev wallet, 0.7 BANANA are held in reserve in the ApeSwap Treasury, and 0.3 BANANA are burnt by sending them directly from the dev wallet to the burn wallet.

Summary

Going forward, the ApeSwap DAO proposes that the 0.3 BANANA per block that are currently earmarked for burning are instead deposited into the Treasury with the other 0.7 BANANA per block that are currently allocated to the ApeSwap dev wallet.

The DAO also proposes that the ApeSwap Core Team be granted the flexibility to make further changes to this 1 BANANA per block as necessary to ensure the long-term sustainability of the protocol.

Motivation

Now that the ApeSwap DAO has established a hard cap of 420M BANANA passed through governance on August 31st, 2022, the process of emitting BANANA into circulation, then immediately burning that BANANA only serves to shorten ApeSwap’s runway of BANANA emissions without a corresponding effect on the value of the token. Burning tokens upon emission does not materially affect the supply and price of BANANA, only buying back and burning tokens that have already entered circulation does.

With a hard cap in place, the DAO must be diligent with how we emit and handle BANANA going forward to ensure the long-term sustainability of the protocol. Having the flexibility to make further changes to the 1 BANANA per block that’s allocated to the dev wallet will allow the DAO to test and iterate on our analysis, with the ultimate goal of using BANANA in the most efficient way possible.

Options

PASS - If this proposal passes, ApeSwap will stop sending 0.3 BANANA per block to the burn wallet, and will instead deposit them into the ApeSwap Treasury wallet. The ApeSwap Core Team will also be granted the flexibility to make further changes to the 1 BANANA per block total that would be sent to the Treasury going forward in order to preserve the long-term sustainability of the ApeSwap DAO.

REJECT - If this proposal is rejected, ApeSwap will not make any changes to the amount of BANANA per block that is sent to the burn wallet or to the amount of BANANA per block that is sent to the ApeSwap Treasury. Any changes to these amounts would have to be passed through a separate round of governance.