Incentivize users to migrate to V3 by matching token side LM rewards with up to 50,000 BNT per pool

This proposal is expected to appear on Snapshot for voting on [date=2022-01-09 timezone="Europe/Lisbon"]. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

TL;DR

• External token projects can incentivise their own communities by providing liquidity incentives in their own TKN.
• To garner fast adoption, and lubricate the transition from Bancor v2.1 to Bancor 3, we propose to match external team’s incentives up to a maximum of 50,000 BNT, emitted over a 24 months schedule.

Incentives for TKN teams to use the Auto-Compounding rewards mechanism on Bancor3.

External Liquidity Mining will be a new feature available on Bancor 3’s Phase 0 release. Blog post about v3 at https://blog.bancor.network/introducing-bancor-3-962a3c601c25 and Mark’s presentation on V3: https://www.youtube.com/watch?v=qi1geks1n8A.

Liquidity Mining is a convenient tool to bootstrap liquidity with proven results. Figure 1 and 2 show the pool balance increasing significantly after LM rewards were activated, and finally stabilising at a higher TVL than before the program started. Matching the rewards on TKN with BNT rewards means that less BNT is needed for Liquidity Mining compared to v2.1.

Since the announcement of Bancor V3, there has been strong interest among white listed tokens to offer LM rewards. Migration to V3 can be achieved in a single click via the Bancor app. The liquidity incentives discussed here are an important component in stimulating users to migrate from v2.1 to Bancor3.

To accelerate the adoption, and help raise awareness for this feature, each white listed token that commits to their own auto-compounding rewards program, the BancorDAO will match the emissions value up to a maximum of 50,000 BNT.

There is no requirement that the token and BNT LM be on the same emission schedule; however, the BNT emissions will be non-negotiable and fixed over a 24-month period.

Figure 1 - WOO pool balance over time. LM rewards started at the end of May 2021.

Figure 2 - FARM pool balance over time. LM rewards started at the end of July.

FOR

Allow for BNT LM to match externally provided token LM up to 50,000 BNT per whitelisted pool.

AGAINST

Don’t activate any BNT based LM rewards.