Protocol Owned ETH Spending Proposition [32 ETH Weekly Method]

Protocol owned ETH to be used to continue the strategy of buying and burning BNT

Summary:

Bancor 3 token surpluses were converted to ETH. The contract now has about 1800 ETH which Bancorians must decide how to utilize

https://etherscan.io/tokenholdings?a=0xD06146D292F9651C1D7cf54A3162791DFc2bEf46

Historically the Bancor DAO has opted to buy and burn BNT as part of its approach to fix the deficit. Buying and burning BNT affects all LPs EQUALLY and does not pick any favorites or provide any preferential treatment to anyone. This method benefits BNT holders and TKN holders the same and has led to over 50+ pools being closed since the discussion regarding sunsetting Bancor 3.

How will this be accomplished?

This proposal proposes a method similar to the approach that was recently used for converting protocol owned tokens to ETH with some modifications to prevent front running.

If it passes, the first initial BNT buy order to be put on chain will happen on November 13, 2023.

Buying of BNT should happen in tranches to prevent front running and be spread out over time using the following schedule every week:

Year 2023:

Week 46 Monday 13 November: 32 ETH to be used for buying BNT

Week 47 Monday 20 November: 32 ETH to be used for buying BNT

Week 48 Monday 27 November: 32 ETH to be used for buying BNT

Week 49 Monday 4 December: 32 ETH to be used for buying BNT

Week 50 Monday 11 December: 32 ETH to be used for buying BNT

Week 51 Monday 18 December: 32 ETH to be used for buying BNT

Week 52 Monday 25 December: 32 ETH to be used for buying BNT

Year 2024:

Continue buying BNT every week using 32 ETH

Year 2025:

Continue buying BNT every week using 32 ETH

To buy BNT with ETH the Bancor DAO must determine the prices in ETH for BNT:

1. Get price from Coingecko
2. Multiply price by 2 to get initial BNT buy price in ETH
3. Contract offers to buy BNT token at initial buy price in ETH
4. The price of BNT drops as defined by an exponential decay formula with a five day half life.

With these steps anyone can buy the BNT with ETH at any time and these parameters can be adjusted by the DAO at any point in time.

For Use protocol owned ETH to buy and burn BNT from the markets

Against Take no action